The primary purpose of any procurement management process is to assess the suitability of providers of goods and services essential to the project in hand. As part of the project management, it is essential to establish good working relationships with all parties connected with the overall supply chain for the project. As its name indicates, the term refers to the unbiased analysis or tracking of the manufacturing processes to purchase order requirements. An implied postulation of Economic Order Quantity (EOQ) analysis is that the purchase price per unit is continual. During an inflationary period, this assumption is not valid. If the rate of inflation is foreseeable, the EOQ formula can be used.

The general EOQ model undertakes that materials can be procured promptly and therefore suggests that the firm may give an order for replacement when the inventory level goes below the prescribed limit. In todays world, however, much time is needed for the procurement of materials. Hence the order level must be such that sufficient inventory exists, or will be available in a timely manner, before the final placement of orders. This step is necessary to allow the needs of production departments to be fulfilled as required.

Several large companies rely on professional procurement management in Brisbane conveyed subsequently to the design and execution of their Procurement process, their annual expenditures reduced anywhere from ten to fifteen per cent. Apart from focusing on the cost savings, those companies expressed the savings in time and resources were enumerable. What is more, the workforce was positively impacted in a variety of areas. To beget desired results with the execution of procurement management, companies are required to make personnel changes, customise existing technology, and take on a positive attitude about the change.

Initiating and upholding a relationship with the suppliers of goods and services to be subcontracted needs to be well researched, and should not be considered lightly. The relationship between buyers and sellers is essential to the success of procurement. It is important that both parties (Buyers and Sellers) achieve a satisfactory financial outcome to guarantee a secure business relationship for future products and/or services. A qualified procurement specialist can assist the process in ensuring a secure supply chain going forward.

At this point of the procurement life cycle, it is important to conduct a thorough review of the overall process with a view to documenting all mission-critical steps. During this part of the process, all issues, and any contract disputes need to be addressed in the administration of the project finalisation. Should any mediation be required, it is important that this is carried out at an early stage and not allowed to escalate.

Because future projects could involve completely new personnel and contractors, it is essential that all documentation is prepared to allow future teams to conduct similar processes with the expectation of suitable outcomes. While the price is an important factor in dealing with suppliers and contractors, it should not be the only factor used to determine the final selections of product and services suppliers.

Reliable performance and ethical management procedures are all important factors to consider in the final analysis.
Importance should also be given to the value of maintaining ongoing, healthy relationships with suppliers and their downstream supply chain partners. The value of building a closely related team of in-house personnel, contractors, stakeholders and supply chain partners should be stressed in the final documentation.