Procurement Management Plan template with real example data

The publication provides a real-life example of a Procurement Management Plan. The material is designed by an actual student in the project management discipline.

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Use this document for your academic or professional needs or your project management or supply/delivery management training.

The publication is approved by an assigned supervisor from the PM.MBA. For information on what Procurement Management is, click here if you want to get to know the subject first.

Procurement Management Plan

With procurement management, we describe in specific terms which items will be purchased and under what conditions. Sometimes the items to be purchased for a project can be made internally by an organization. Delivery times are following the project schedule and the necessary components are delivered at certain times to ensure the timely implementation of the project.

The conditions and any relevant technical information shall be specified. The persons included in the list of authority to approve purchases in addition to or in the absence of the project manager shall be described.

The list of items and services is reviewed by the contract and purchasing department.

All items and services that will be purchased for this project will be requested for delivery under fixed-price delivery contracts. The project team will work with the contract and purchasing department to determine the types, quantities, services and delivery times required. The delivery department will then collect a minimum of three offers from different suppliers to purchase the items within the required timeframe and at a reasonable price under the delivery contract once the supplier has been selected. This contract will be concluded for one year with an extension option.

  • We evaluate and list the required items.
  • Collect the list of items from the departments.
  • We study the local market for prices and availability of goods.
  • Determine quantities and estimated costs
  • Determine when the required materials are needed for use
  • Consolidation of such necessary materials
  • Determine appropriate delivery methods and processes
  • We plan time for each process to be completed
  • Prepare an implementation chart defining key dates for each process

Deliveries for the project

We identify any products, goods or services that must be purchased during the project. All of them must be documented. We assign the person responsible for the order.
We indicate the selected ordering method for each item. The methods of procurement are: emergency delivery, sole supplier, small purchase
Purchased items must be inspected before being accepted. This is certified by a delivery note, delivery note, and another delivery document.
The goods are returned to the suppliers with confirmed low-quality goods.

Plan for failed or damaged delivery.

Delivery of goods is always done with supporting documents Receiving and Transmission Protocol, it certifies the delivery. Before accepting the goods it is described if there are any remarks on appearance. The return of the goods and their replacement are described in the delivery contracts.

The delivery contract also describes the penalties for failure of delivery. A second supplier is always envisaged to protect against an inability to deliver. That is why three offers from companies are collected before the decision is made, including the check of the foreign suppliers.

Read also: Procurement Management Plan in project management practices

Delivery contract

OBLIGATIONS OF THE SUPPLIER

1. The provider shall:
1.1. Complies with the agreements and obligations arising from this Agreement
1.2. Delivers the goods in appropriate packaging according to the type of goods or the Buyer’s instructions;
1.3. Signs the goods receipt for each delivery and the goods have the corresponding trademark.
1.4. Issues a tax invoice in USD, corresponding to the requirements of the USA legislation for each delivery;
1.5. Deliver the goods ordered in the order, undamaged and undamaged; as well as the specified quantities, terms, quality, packaging, bar code, manufacturer’s or importer’s label.
1.6. When changing the bar code of any of the items, the Supplier is obliged to notify the Buyer in advance and to arrange, through his representative, the change of the bar codes of the delivered items.
1.7. In case of delivery of goods which are not on pallets and it is impossible to unload with the lifting equipment of the hypermarket, the Supplier’s representative is obliged to unload the goods on the pallets provided to him.
1.8. Ensure that the delivered goods comply with the US norms and standards or with the norms and standards of the European Union or other countries defined by the normative act in the US or other countries, where there are such, with the legal requirements for safety and security, to have quality certificates, a guarantee certificate, declaration of conformity, labels in the country, instructions for use and manufacturer in the country. If the Provider breaches the terms of the point and therefore the Buyer receives penalties and fines, then the Buyer will re-invoice them to the Provider.
1.9. The delivered product shall have a residual shelf life of not less than half of the total shelf life of the product concerned;

Delivers goods for which all duties and other charges have been paid, have passed the necessary control by the competent state authorities and inspections in accordance with the requirements of the current legislation, and have issued regular documents establishing that no third party claims, no commercial or special pledge, no foreclosure;
1.11. Provides warranty cards and warranty coverage
1.12. To replace or accept back for its own account any goods delivered by the buyer which do not meet the requirements of this contract, including the requirements for compliance with standards;
1.13.To provide the Buyer with the necessary technical and commercial characteristics, when necessary. The Supplier hereby authorizes the Buyer to reproduce any information relating to the Goods;
1.14. Declare and warrant that the supplies of goods covered by this Agreement, as well as their images, technical and commercial characteristics used by the store, will not infringe any third party rights or, in particular, intellectual property rights that would give rise to action. against the Buyer.
1.15. Does not transfer to a third party claims against the Buyer arising out of this contract, either through cession, factoring, or in any other way, unless the Buyer has given express written permission to do so;
1.16. Offers free training for staff in dealing with specialized goods;
1.17. Designates its own employee responsible for each of the Buyer’s shops, assigning him to contact the buyer directly, to provide the Buyer with information about new products, including technical documentation, to participate in organizing promotions, to take care of complaints, to assist in the provision of warranty service;

1.18. Provide the Buyer with all documents relevant to the ownership and sale of the goods on the market;
1.19. Notifies the Buyer of any change in his master data/headquarters, bank account, fax, telephone, etc. / in writing. Otherwise, the Buyer is not responsible for any subsequent damages;
1.20. It shall bear full responsibility in the event that in connection with the goods delivered to the Buyer acts are drawn up or financial sanctions are imposed by state authorities or inspections, due to the reimbursement of all costs incurred and all sanctions imposed.
1.21. Immediately pick up the goods, but no later than 24 hours, in cases where the sale of the goods is prohibited for reasons for which the Buyer is not responsible.
1.22.Reimbursement for all costs incurred if fines or penalties are imposed on the buyer due to the late delivery of delivery documents.
1.23. Reimbursement of all costs incurred and compensation paid by the buyer to the third party, if convicted, in the event that third parties make claims against the Buyer for damages arising from the purchase of the Supplier’s goods. The Supplier is obliged to render the necessary assistance to the Buyer in order to defend himself against these claims, including in court.
1.24. shall pay a penalty of 1% for each delayed day, but not more than 10% of the stated value, in case of failure to deliver within the specified time. If the delivery is delayed more than 7 / seven / calendar days, the buyer has the right to refuse to accept the goods.