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IT Procurement
1. How do you define IT procurement process?
2. What are the standard procurement processes and steps?
3. How CompuMate can help you with IT procurement?
2. What are the standard procurement processes and steps?
3. How CompuMate can help you with IT procurement?
Have you ever had difficulty deciding which Server, Workstation, PC or Software to buy?. Purchasing hardware and software for
a business gets very complex, very quickly. Which PCs hold up well in a corporate environment? Which servers play well with the
network and other infrastructure? Which vendors provide the best service?CompuMate has years of experience helping its customers to manage their computer equipment procurement. We help take the headaches out of ordering and tracking the lifecycle of computer equipment so you can focus on your business operations.
How do you define procurement?
Procurement is the acquisition of appropriate goods and/or services at the best possible total cost of ownership to meet the needs of the purchaser in terms of quality and quantity, time, and location. Corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing exposure to fraud and collusion.
Managing the IT Procurement Process
An IT procurement process, formal or informal, exists in every organization that acquires information technology. As users of information systems increasingly find themselves in roles as customers of multiple technology vendors, this IT procurement process assumes greater management significance. In addition to hardware, operating system software, and telecommunications equipment and services - information resources traditionally acquired in the marketplace - organizations now turn to outside providers for many components of their application systems, application development and integration, and a broad variety of system management services. Yet despite this trend, there has to date been little, if any, research investigating the IT procurement process.
Procurement systems
Another common procurement issue is the timing of purchases. Just-in-time is a system of timing the purchases of consumables so as to keep inventory costs low. Just-in-time is commonly used by Japanese companies but widely adopted by many global manufacturers from the 1990s onwards. Typically a framework agreement setting terms and price is created between a supplier and purchaser, and specific orders are then called-off as required.
Shared services
In order to achieve greater economies of scale, an organization's procurement functions may be joined into shared services. This combines several small procurement agents into one centralized procurement system.
Procurement process
Procurement may also involve a bidding process i.e, Tendering. A company may want to purchase a given product or service. If the cost for that product/service is over the threshold that has been established (eg: Company X policy: "any product/service desired that is over $1,000 requires a bidding process"), depending on policy or legal requirements, Company X is required to state the product/service desired and make the contract open to the bidding process. Company X may have ten submitters that state the cost of the product/service they are willing to provide. Then, Company X will usually select the lowest bidder. If the lowest bidder is deemed incompetent to provide the desired product/service, Company X will then select the submitter who has the next best price, and is competent to provide the product/service. In the European Union there are strict rules on procurement processes that must be followed by public bodies, with contract value thresholds dictating what processes should be observed (relating to advertising the contract, the actual process etc.)
Procurement steps
Procurement life cycle in modern businesses usually consists of seven steps:
Information gathering
If the potential customer does not already have an established relationship with sales/ marketing functions of suppliers of needed products and services (P/S), it is necessary to search for suppliers who can satisfy the requirements.
Supplier contact:
When one or more suitable suppliers have been identified, requests for quotation, requests for proposals, requests for information or requests for tender may be advertised, or direct contact may be made with the suppliers.
Background review:
References for product/service quality are consulted, and any requirements for follow-up services including installation, maintenance, and warranty are investigated. Samples of the P/S being considered may be examined or trials undertaken.
Negotiation:
Negotiations are undertaken, and price, availability, and customization possibilities are established. Delivery schedules are negotiated, and a contract to acquire the P/S is completed.
Fulfillment:
Supplier preparation, expediting, shipment, delivery, and payment for the P/S are completed, based on contract terms. Installation and training may also be included.
Consumption, maintenance, and disposal:
During this phase, the company evaluates the performance of the P/S and any accompanying service support, as they are consumed.
Renewal:
When the P/S has been consumed and/or disposed of, the contract expires, or the product or service is to be reordered, company experience with the P/S is reviewed. If the P/S is to be re-ordered, the company determines whether to consider other suppliers or to continue with the same supplier.
CompuMate @ IT Procurement
Hardware and Software procurement - CompuMate has partnered with the major IT vendors and is able to bring our customers discounted pricing on most of the multinational brands in Server, Workstation, PCs, Laptops, networking products and software out there.
| Next Step |
To discuss how Compumate Support Services
could benifit your business, please contact us
could benifit your business, please contact us
And if you'd like to know more about how we support our
clients, just call or mail us;
Call : +971 4 4344200
Mail us : sales@compumate.ae
