Contents

Part A..........................................................................................................................................................1
“Procurement has long been criticised for having a tactical, short-term focus although there is an.............1
increasing focus on the medium and long term.”  Do you agree? Support your answer with theory and
practices.......................................................................................................................................................1
Medium and Long Terms Business.........................................................................................................1
Q-2 The challenges facing procurement and supply management in the post COVID‐19 pandemic..........2
Part-B...........................................................................................................................................................5
Q-1 The importance of public procurement as a tool for economic development.....................................5
Q- 2. How “under-represented” business owner can engage with public procurement opportunities......6
Q-3 A. Estrange or engage with the public procurement opportunities......................................................7
3. B. The public procurement best practices and compete for profitable work.........................................8

Part A

“Procurement has long been criticised for having a tactical, short-term focus although there is an

increasing focus on the medium and long term.”  Do you agree? Support your answer with
theory and practices

Tactical procurement relies on the fast trading activity found in small and medium-sized
production teams. Tactical procurement plans are typically created by senior management within
the company or may not be developed by the company's procurement department. If you need to
get a significant company plan, you usually need a tactical procurement plan. Tactical methods
can divide this large enterprise into smaller, more manageable goals.

For example, in this example, we will begin by accrediting all senior participants in the
purchasing department or by signing up for up to four special accredited education courses in 10
groups. All of this will be completed within a year. Tactical procurement planning becomes
increasingly difficult, with many procurement departments, procurement and procurement
departments, and many professionals working in the procurement arena. In the event of a tactical
procurement emergency or a critical alarm, you are more likely to address this tactical
procurement strategy. Therefore, when developing short-term tactical sourcing solutions, you
need to remain motivated to implement long-term strategic sourcing goals.

Medium and Long Terms Business

The long-term business responsibilities of day-to-day manufacturing operations and

management are very different. Consider a medium-sized production company where the
buying employer has the activity and ability to utilize the people of almost every delivery-based
supplier. Usually, in this case, the buyer will use sensible judgment to place an order with the
supplier who offers the cheap price, the cheap price, the best delivery time, the right date. These
buyers or buyers do not have a Buyer/Buyer Technology (Enterprise Resource Planning)
platform or communicate key advanced or higher skills from tactical to strategic purchases
There are cases. Their top priority is to keep the production line up and tactical sourcing is a
high quality demand for this type of operation. Primarily, tactics are the right way to "do the
right thing" with these companies and companies. A medium-sized manufacturing or
manufacturing company where the purchasing department can use almost any supply-based
supplier. Customers who use this feature typically assign orders to the company with the lowest
price and highest arrival time. Routine management of production operations is far more
important than dealing with long-term strategic responsibility. This happens in many purchasing
departments without time. From time to time, buyers lose or fail their procurement platform or
ERP software, or move from strategic to strategic to a very advanced feature set. So their first
job is to keep the production stock open and running. Facial sourcing experts don't remember
this as a good practice, but it's an accurate technique. Therefore, tactical procurement is a good
wish in this situation.

The procurement department of another organization or institution. Enterprise resource

planning technology can handle anything and there is a dedicated product team. When buying at
this organization, they choose from a small carrier library that they surveyed and select specific
suppliers who rely entirely on the company's expectations and potential to meet their needs.
This proprietary purchasing organization is far from the right technology. Organizations may
choose to design a hybrid approach using low-cost enterprise resource translation technology
and a small product specialist organization. Separation of responsibilities ensures that you have
sufficient strategic support to keep your business running when delivering the most important
products to your enterprise. You can discover this by assessing tactical sourcing versus strategic
sourcing. The buying process doesn't seem to be that strong. At the plan and method level, you
need to create a standard plan, but at the tactical level, your strategy should be honest.

Q-2 The challenges facing procurement and supply management in the post
COVID‐19 pandemic

The crisis of the coronavirus has brought unexpected fluctuation and fragility in modern supply
chain field. Most countries are experiencing devastating economic impact due to the crisis. As it
hit global economy faster than we expected, multinational companies experience shock of supply
and demand as most countries make people stay home. Only basic products and food products
are purchased by consumers which have strong impact on supply chain process. The decline of
domestic and international trade worsens week by week since the beginning of February to
current moment. Besides, every lockdown area has been experiencing downward slope of trades.
It appears some challenging issues such as taking longer to be able to settle invoices. Although a
faster payment trend was being applied previously. In 2019, it took 36.7 days in business field to
settle invoice and 36.8 days in 2018. In the beginning of 2020, it was 37.4 days of payment terms
to settle. The slowing down of new order affects the process of supply chain and hinder the
invoices behind. Even after the lockdown, although the factories are reopening, customers seem
to have lack of interest in buying unless it is basic items. Although some countries release
lockdown, their counterpart trading partner countries are still under lockdown. It also has great
impact on their supply chain process.

Countries around the world has experienced the vulnerability of supply chains which build on
lean manufacturing principles. For instance, in health care sector, the cost-effective masks and
other protective equipment were made in cheaper cost. The effect of lockdown in key
manufacturing areas have problem with supply chain as manufacturers have to struggle to rotate
the supplier base. As a result, in future, the global firms will probably diversify their supply
chains instead of depending on a particular country. Consequently, manufacturing hubs such as
Mexico, Vietnam and India will probably have the opportunity from that case. To decentralize of
manufacturing capacity, some companies bring their production to home and it grows like
flexible automation and small batch production. This is a cost cutting way to bring supply chain
to alive. In such case, policymakers might force to manufacture in the country or particular
places.

To build stronger and smarter supply chains with speedy recovery, digitalization and diverse
sourcing are the key factors. Although there are high-speed advancement in technology, the
relationship between consumers and sellers are still remaining in paper-based. Converting the
paper-based relationship into digitalizing is a fundamental key factor to have well-structure
supply chains as it saves a lot of time and energy. Thus, this current crisis bring advantage of
converting outdated process into digitalizing. By creating smart supply chains can be a weapon
to protect future supply chains crisis as well as benefits to build global trade.

Globally, today’s manufacturing process has been more advanced at the same time, more
complex. The ingredients or subcomponent to from a final product needs to be similar or almost
same globally. The raw materials used to manufacture these subcomponents must be imported
from other part of the countries or across the continents. Furthermore, the finished or almost
finished goods will be transported to other places. If the supply chains process is being disturbed,
the import, export and manufacturing process will be in trouble. For instance, China exported
(APIs)active pharmaceutical ingredients to India. During COVID-19, Indian government banned
importing (APIs) from China. As a result, India’s pharmaceutical firm is having a difficult time
to maintain its export figures. Consequently, there will have a shortage on medicine globally as
India is the biggest common and collective medicine supplier in the world.

The other challenge is about procurement in sourcing organization. Earlier before pandemic, the
process of lower cost production has been very popular. However, during pandemic period, the
shortage of goods and demand hit the distribution rate. At the same time, distribution sector has
been experiencing challenges about direct distribution, proper and responsive allocating, staffing
at warehouse issues. The unusual impact on retailing is also noticeable. During lockdown period,
people are more interested in buying basic item than luxury items. Consequently, at consumer
view, hoarding of basic commodities and common medicine leads to peculiar stress to supply
chains. Typical consumers usually rush to buy essential goods and food products during
pandemic crisis. This unusual peak of demand makes supply chains fluctuate dramatically. In
future, factories can adapt and shift lines as there is changes in demand. Business will likely to
convert to digitalization and use cloud to be able to access remotely while employees can work
from home. This can also help business continuity without having significant loss.

One of the possible bright sides after COVID_19 is that having possibilities of working from
home can make renewed focus on the principal of environment- friendly tasks. The main
challenging of global trade is forming the collaborative structure of business as there were many
competitors. However, the post COVID-19 economic rebound is a global responsibility and the
realization should be a global collaborative effort. Procurement is a major role once the recovery
plan is implemented. Transparency, integrity and collaboration are essential part of post-crisis
recovery plan.

The Post COVID will have significant digital transformation as the business around the world
has been experiencing a lot of downturns. Technology will probably take place with newer
strategy in future. Using intelligent procurement process by using latest advanced machinery can
bring fruitful result too. The digitalization can help procurement leaders to accelerate the
recovery after pandemic along with proper consideration from short term to medium and long
term to reshape the organization. Contracting is critical matter in reviving and resettling small
business as well as infrastructure.

Part-B
Q-1 The importance of public procurement as a tool for economic
development
The process of public procurement is quite bureaucratic, institutionalized and legally complex
which is difficult and extremely competitive for SMEs and small firms to enter.

 However, procurement has become a specific theme of upgrading Urban Innovation

Partnerships and it also benefits economic development and poverty. Directive seek is more
flexible in procurement which engage with potential suppliers before the products or goods reach
to the market. It also encourages SMEs to participate in bidding, raising awareness to win the
contract. Today, procurement has encouraged for outsourcing with local or outside the country
which can have more exposure and development in country’s economy. Extending the network
can bring more opportunity to develop the country’s business and economy. Besides, investment
of local supplier, can also help to develop the country’s economy. In some countries like
Australia, investment in public infrastructure is a significant role in public procurement.
When small firms have potential to supply the public sector with variety of services and
goods, ranging from low value to high value product or services, the suppliers’ market will
boom. It will become more competitive with innovative strategy and reasonable prices. In this
way, procurement has become one of the strategic tools to achieve economic goals of a country.
 Furthermore, long-term contracts, two stages tendering, single -sourcing and using e-
procurement are the best practice of procurement to reduce the cost and to bring better and
effective result in public procurement. Such cost cutting encourages local government
purchasing to consider partnership approach which is also known as consortia buying.
Public procurement is a key influencing factor in a country’s economic development.
Understanding and monitoring the country’s policy and regulatory and awareness on strategic
approach can enable to accelerate the country’s economy. If public procurement can be
implemented strategically, job – opportunity, firm level growth, social inclusion and innovation,
improvement in health care and education can also be boosted.

Part- B

Q- 2.
How “under-represented” business owner can engage with public
procurement opportunities
The public sector procurement is unlike private sector procurement. It focuses on accountability
and transparency and it emphasizes legislation, process and policy.it serves directly or indirectly
on opportunity structure to suppliers. The highly institutionalized market with high
standardization limited SMEs to enter into the market they have limited resources. Due to the
nature of the current market, objectives are less important than value of money. Currently,
single-sourcing, two-stages tendering, long-term contract and e-procurement are the best way to
save cost.  For cost reduction, consortia buying and bundling of the contract is the best way. E-
procurement is very effective to deal with a wider supplier pool by public procurers. However, e-
procurement is out of reach for small firms as it includes the awareness and ability of being
familiar with online tendering platforms. These procurement practices are the major obstacle for
SMEs’ involvement in public sector contracts. As they do not have sufficient capacity of supply
to bid for the requirement of public procurement. Due to the limited information and resources
availability, SMEs business are more successful below than in above- threshold procurement.
Thus, the participation of larger companies in tender submission is more than SME and other
under-represented businesses. This also brings significantly larger gap between small and
medium enterprises, medium and large enterprises. The larger the contract, the less opportunity
for small firms to win. Furthermore, there are other factors such as type of contract, sectors of
goods and service, type of procurers, the tender chosen and market aggregation influencing
SMEs and under-represented firms to enter public procurement. These institutionalized markets
are shaped with long-term single sourcing, strict rules and aggregate demand. These limitations
make it challenging to small firms to enter. These markets are shaped with monopoly suppliers
which can allow the smaller suppliers with the possibility of sub-contracting.

However, the strategic choice and product market knowledge of owner-manager enable them to
enter the public sector market. Sufficient knowledge of what and how the public sector buys and
outsources is a major break-in point of SMEs to win the opportunity to work with large
organizations. Thus, prior knowledge of the public sector market and how they operate, how to
deliver the requirement of clients are the key factors for SMEs and other under-represented
business firms to win the public sector contracts. 

The willingness of the owner and passion of the manager shape most of these factors. Small
firms mostly benefit from their network to enter the public sector market. Relating to the extent
of their network to external relations for accessing the market, small firms have the opportunity
to win in public as well as private sectors. The knowledge of the product of the owner is also a
strategic resource which plays a vital role in winning the chance to access the public sector
market. The perception of business owners and managers and their willingness to take risks
shape the opportunity to enter the public sector market too. Capable management, skilled staff
and buyer’s requirements are also important parts to access public sectors. This is why, having
courage to take risk, having positive attitude towards taking risks, the resources (time, money,
effort), strategic choice, having adequate knowledge of product market ,procurement knowledge
(including the ability to write effective tendering bids) and strong network connection to external
firms are essential and key points  to enter the public sector market.

Part B

Q-3 A. Estrange or engage with the public procurement opportunities

If I were a small business owner, I would take the risk of entering to public procurement
opportunity. Especially during post COVID- period, most business are relying on technology and
reducing man power. Being familiar with technology can handicap in this time of crisis. To be
able to bid the contract or tender, small business owner needs to have expert knowledge on
procurement process with strategic approach. The perception of risk taking, confidence to take
the risk is the ability of the owner. Knowing the vigorous competition, the owner must confident
enough to compete in the market. Awareness on the prior knowledge of the market and resources
such as time, money and effort are essential to enter the public procurement. During post
COVID-19 period, investors of local firms are willing to hire outsourcing in procurement sectors
to reduce the human resource of their firm. Foreign investors can’t also do procurement without
the knowledge of local procurement sectors. Besides, many emigrants are coming back to our
country due to the corona crisis. This is also an opportunity to hire outsourced people. Some
organizations hire local procurement specialists as an outsourcing expert. This can be an
opportunity for small firm owners. At this point, broadening the network of own business
regardless of the size of the firm is a key factor. If the owner of the firm is broad-minded and has
strategic network, it will be an upper-hand to win the contract. However, it is very competitive
market and has little chance to win if the other competitors have equal or almost same quality. At
any rate, staying in comfort zone can’t make the business develop. Thus, grabbing the golden
opportunity to compete whether win or not can bring experience to learn for future growth.
Having positive attitude and willingness to take the chance can bridge to win the contract to enter
public procurement.
3. B. The public procurement best practices and compete for profitable
work
To benchmark your procurement as best practices policy, organizations have to follow some
important factors. Proper Alignment and staffing are one of the important factors to embed the
effective supply chain management. For some business, centralized operation is more effective.
Adopting hybrid approach of centralized approach combined with decentralized approach to get
consensus can have significant improvement. Placing contract management, forecasting
planning, procurement and other related management under the leader of supply chain although
it can’t be fit with all organization, it can at least give clear structure of reporting. However, no
matter what structure was adopted, correct staffing of the supply chain is very important. The
knowledge of supply chain of staff is a vital role. Thus, most effective organization hire strong
supply chain managers who have excellent strategic thinking, strong relationship and
communication skills with management.

Using technology will make workflows and processes more efficient and effective. It also saves
time and energy of man power. It is very important of using technology in order to to keep
abreast with current digital world. The skill of manager to extract and view the data with expert
knowledge of technology is an upper hand to benchmark the organization. Procurement
automation is an effective way to save money and time as well as to reduce unnecessary
repetition of process. Such digital transformation can make your procurement more efficient.

One of the main advantages of strategic sourcing is focusing on total cost of ownership not only
on price. Currently, effective organizations give up the idea of receiving several bids and
selecting a supplier on price. Another important factor is putting contracts under the function of
supply chain to avoid the failure of communication and monitoring the contract compliance.

It is important to follow the appropriate policies and procedure in supply chains management in
order to avoid the future possible risks. Risk mitigation decision should be integrated in supply
chain organization.

Overall, Best-in-town organization can make supplier engagement smooth by collaborating

partnering with vendors. This make win-win situation with vendors and build more trust.
References
Vinay Sharma , April 15, 2020. COVID-19 Challenges and Response: How procurement
underpins the World Bank’s response to the pandemic https://blogs.worldbank.org/voices/covid-
19-challenges-and-response-how-procurement-underpins-world-banks-response-pandemic

https://www.researchgate.net/publication/227651958_Short-Term_E-
Procurement_Strategies_Versus_Long-Term_Contracts/citation/download
https://www.slideshare.net/DrGordonMurray/penny-wise-procurement-
strategieslongtermeffectivenessshorttermwins-10121

https://www.weforum.org/agenda/2020/05/this-is-what-global-supply-chains-will-look-like-
after-covid-19/

https://www.supplychainquarterly.com/articles/475-10-best-practices-you-should-be-doing-now