What Is Procurement Planning?

Procurement Plan refers to the foreseeable arrangement and deployment of material procurement management activities during the planning period by enterprise managers on the basis of understanding market supply and demand, understanding the production and operation activities of the enterprise, and mastering the law of material consumption . Purchasing plan is a planning form based on the plan of the production department or other using departments, including purchased materials, purchased quantities, demand dates, etc.

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1) According to the length of the planning period, the procurement plan can be divided into annual material procurement plan, quarterly material procurement plan, monthly material procurement plan, etc.
2) According to the direction of use of materials, the purchase plan can be divided into a material purchase plan for production products, a material purchase plan for maintenance, a material purchase plan for capital construction,
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Purchase plan (budget), which is part of the production / sales plan and is also the company
(1) Separate goods, engineering and consulting services when developing a procurement plan. The issues that should be paid attention to when preparing a procurement plan are: the scale and quantity of procurement equipment, engineering or services, as well as specific technical specifications and specifications, and performance requirements; there are several stages or steps when purchasing, which are arranged in front and which are arranged in the back , There must be a sequence, and how long it takes to prepare each batch of goods or projects from preparation to delivery or completion; generally, important control dates should be used as milestone bar charts or similar charts, such as bid opening, Signing date, start date, delivery date, completion date, etc., and should be regularly revised; convergence in the procurement of goods and projects; how to subcontract parts, divided into several packages / contract sections, each package to the same section What specific works or cargo items are included.
(2) Relevant matters that should be noticed in actual work: In order to better organize the procurement work, it is necessary to establish a strong management organization and maintain the stability and continuity of the leadership team. Effectively strengthen leadership to ensure the smooth progress of project procurement; determine batch procurement arrangements, bundling and subcontracting and contract segment divisions based on market structure, supply capacity or construction strength, and potential competitiveness. When the ICB tender is adopted for civil construction contracts, the small scale is not conducive to attracting bids from internationally strong contractors and suppliers. Too many and too small contracts are not convenient for construction supervision and contract management. When determining the procurement schedule According to the project implementation arrangements, the cost of loans should be weighed, and purchases should be made early and in advance, and interest should be paid; too late will affect project implementation. Therefore, the project procurement department and procurement staff must weigh the advantages and disadvantages and make overall arrangements.
(3) Make preparations for procurement as early as possible. According to the requirements of the procurement cycle and the project cycle and bidding procurement arrangements, generally, after the procurement plan is formulated, the next step is to prepare bidding documents (including pre-qualification documents before this) and enter the formal procurement stage. Generally, the most ideal arrangement is to start preparing tender documents during the project preparation and evaluation stage, and conduct pre-qualification at the same time. Before the loan agreement takes effect, the bid opening and evaluation will be completed, and the contract can be formally signed as soon as the agreement takes effect. This can avoid the inadequate preparatory work for procurement, which will affect the progress of procurement as scheduled. The World Bank has pointed out that the speed of the procurement progress tif {J mainly depends on the level of detail of the procurement plan and contract package in the preliminary preparation stage of the project. At the same time, the preparation of tender documents as early as possible also has a significant role in promoting the procurement progress.
(4) Select the appropriate purchasing agency. The selection of the procurement agency shall be determined according to the content of the project procurement, the procurement method and the relevant national regulations. Generally, those that belong to international competitive bidding shall be selected by companies approved by the state and qualified for international bidding. For inquiries, domestic competitive bidding, and direct procurement, depending on the situation, you can choose an international bidding company or a foreign trade company as an agent, or the project unit can organize the procurement itself. The selection of a procurement agency in a World Bank project is both an explicit stipulation of the relevant state department and the current system in China. In most projects, the owner often only contacts one project. Almost all the work starts from scratch. Purchasing agents have been involved in many projects, and have a deep understanding of all aspects of the World Bank's regulations and procedures. Practice has proven that owners can use this to accelerate project progress and avoid unnecessary errors.

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