Business Studies, asked by princeannan1997, 8 months ago

Explain five root causes of technological risk in the procurement process.

Answers

Answered by madhav127
1

Answer:

hey mate

Explanation:

-Failure to secure ongoing supply critical to the organization.

-Insufficient lead-time.

-Misrepresentation of facts by potential suppliers.

-Selection of inappropriate procurement strategy.

-Use of inappropriate evaluation criteria

hope it help u

Answered by skyfall63
0

For many of our businesses, the control of company-wide spending and the implementation of effective procurement policies is a challenge. Companies are responsible for several different areas, including the procurement demand management , order process, contract management , product lifecycle management & much more. A large amount of time

Explanation:

Challenges that Business Face with using Technology in  Procurement Process

  • Supply Risk Mitigation:The supply risk for the companies in the procurement process is often a challenge. The most common problems facing companies in the manufacturing chain are economic and political market dynamics, possible fraud, spiraling prices, poor quality and inefficient logistics. Additions to this are other policies on public procurement and regulatory procedures in areas like anti-corruption are a complicated task for other buyers.
  • Procurement Expertise: Procurement people must be generalists in certain cases and be a little expert in all. With a professional IT procurement team in the building, this can be a risk, as this is such a specific area. With a team of specialists outsourced, specialized in technology, this saves time and resources by eliminating the strain and stress on generalists to make things accurate.
  • Delayed Procurement Process: Many companies and the people involved in real purchasing may also be stressed in the buying process itself.  Only if the goods the company  purchases (which is not so every time with respect to technology) are readily deliverable , easy delivery in the real world does not take place, product pricing and availability lead times will differ from the original price and availability as required. Consequently, real completion times and the contract duration are considerably longer than anticipated, and thus large projects are delayed and stressed.
  • Inaccurate Data: In order to make correct and consistent decisions, data driven approaches are essential. The provision of incorrect data based on products or services may lead to an "procurement" failure which may lead to more complications. Such problems will impact the bottom line of the company & affect the quality and reliability of the system. It is crucial that the technology partner clearly understands what the project needs are &  then supports  in the procurement process , ensuring that all deadlines & KPIs are met.
  • Strategic Sourcing: IT procurement must align in line with an outline of the company's strategic plan with an integrated approach of  innovation use and accomplishing growth. Working together with different stakeholders (IT vendors) and knowing the strategic effects of each investment will make sure that any technology acquired is a catalyst for launching the Company's long-term strategy. The investment must be confirmed in the future over a period of 3-5 years in collaboration with industry experts.
  • Supplier Management: The supply management is one of the big challenges in IT procurement. It is important for success to ensure that the company selects the most efficient and suitable vendor to provide complex technical solutions. Many organizations who rush this process are left with significant problems which further cause delays in the entire process.. The best choice is not always inexpensive.
  • Dark Purchases: Dark transactions occur when non-compliant processes are followed. Products or services may be purchased from suppliers that are not included in the approved list of suppliers or from suppliers not allowed for official sale. If this happens, the buyer may have problems of price and non-compliance. When technology is used in the procurement process and in order to ensure that requirements are met, it is essential that the procurement process includes and adheres to all standards with regard to the supplier, purchaser,  and the manufacturer.

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Definition of project procurement process - Brainly.in

https://brainly.in/question/3212599

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