Need Definition

Need Definition

INF 336 Project Procurement Management

Need Definition

Describe the differences between needs identification and defining commercial equivalents and discuss why it is preferable to separate into two stages.

Needs identification involves the highlight of requirements needed to complete a project. Gathering information related to the current status of the project, in addition to any obstacles that may occur. Furthermore, for each obstacle that is brought to attention, there must also be a solution or alternative method to combat that specific issue. Commercial equivalents involve gathering available information about solutions in the form of products or service providers that have the ability and availability to assist in project completion. This also includes material acquisition, funds available and how the sub-contractor will accomplish the tasks assigned to them.

Both processes, needs identification and commercial equivalents require much detail, so it would be ideal for these processes to be separated into two phases. Reviewing all aspects and requirements of the project, ensuring understanding and compliance with all members, open communication to address any problems that may occur, encouraging completion by the deadline and materials required are all things that one must take into consideration.

Interpret the value to the organization when early supplier involvement (ESI) is implemented effectively.

Early supply involvement and early supplier involvement (ESI) helps assure that what is specified is also procurable and represents good value (Johnson, Leenders & Flynn, 2015). In short, the needs identification and defining commercial equivalents process need to be put into place, and the reputation of the product is just as vital. An organization’s value is primarily based on customer service and the goods they sell, so it’s vital they meet or exceed expectations. If not, then investments can diminish along with their reputation. Early supplier involvement prevents unnecessary issues associated with trying to reverse a design decision after it has been made and approved technically (Johnson, Leenders & Flynn, 2015). Once an agreement is made between supplier and organization and cost of services have been agreed upon, the supplier cannot come back to the table to re-adjust the cost of materials.

Examine the advantages and disadvantages of specifying by performance

Specifying by performances brings both advantages and disadvantages. Organizations can communicate all requirements with both the supplier and the manufacturer. However, the specifications are not explained in detail, it leaves less error on requirements. This specification is crucial because manufactures need to know how to determine if their products are complying, and this process will provide the guidelines needed in decision making.

Describe how a supply professional understands strategic requirements

A supply professional understands the strategic requirements in terms of a business venture, as they are constantly looking ahead to anticipate needs. This is vital because they must have considerable judgment that covers resale, raw and semi processed materials, parts, maintenance, capital and service (Johnson, Leenders & Flynn, 2015). Furthermore, Supply professionals should focus on the revenue generated from the finished product, cost of manufacturing and distributing and marketing of said product.

References

Johnson, P. F., Leenders, M. R., & Flynn, A. E. (2015). Purchasing and supply management (15th ed.). Retrieved from https://redshelf.com/