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    Procurement Strategy for American Property Development Corporation

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    Scenario:

    American Property Development Corporation (APDC) a designer and developer of outdoor shopping malls and small office complexes has decided to standardize their project management practices and processes across the national organization. The goal is to standardize on one single project scheduling tool, and have the tool installed and to be operational within 90 days. To this end they are forming a central Project Management Office (PMO). Until now, project managers (there are 40 presently on staff distributed all over the USA and Canada) have been able to use whatever scheduling tool they liked, within their budget constraints. They have also been able to buy equipment and engage contractors at will. The PMO will be determining one scheduling tool that all PMs will be expected to use, exclusive of any other scheduling tools. The PMO will also develop and implement a standardized procurement process. Since the PMs are located across the USA and Canada, a web-based solution seems likely to be the most successful tool.

    Solution:

    I have chosen to purchase the scheduling tool. In addition to purchasing the software, I need to procure additional goods and services to implement and deploy the tool. Specifically, I will also need to:

    - Hire technicians to install and configure the software for your environment
    - Hire a training entity to teach the student PMs the mechanics of using the new tool
    - Buy a new server and software to run the tool and house the project database
    - Hire tool usage experts to transfer knowledge to the student PMs about the use of the tool on the job for the first 60 days after going "live"
    - Plan for the removal and disposal of the no longer to be used scheduling tool software and hardware.

    Word Document, 750-1000 words, APA format and references.

    Develop a report addressing the solution.

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    Solution Preview

    Introduction

    Procurement can be explained as the acquisition of the goods and services in the project or in an organization. In other words procurement could be explained as the process in which two parties are involved with different objectives one is buyer and other is seller or supplier. It is essential for an organization to use an effective procurement process in order to enhance the effectiveness of the purchasing process (Hodgkinson, 2001). The effective procurement strategies help to increase the profitability of the business by taking quantity discounts and reducing the cash flow problems. The good procurement strategies also contribute in seeking out quality suppliers, which also standardizes business practices and reduces paper work cost.

    Procurement Strategy

    The procurement strategy of the organization should be framed according the organizational goals and objectives. The main objective of American Property Development Corporation (APDC) is to procure additional goods and services to implement and deploy the tool in the organization to increase the competitiveness. The organization may implement or adopt different types of the procurement strategy based on the organizational objectives. Two basic procurement strategies are described below, which can be implemented by the management of APDC to procure additional goods and services ...

    Solution Summary

    It is essential for an organization to use an effective procurement process and the procurement strategy of the organization should be framed according the organizational goals and objectives. This solution discusses corporate abd project procurement strategy in essay format in 813 words.

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