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CHAPTER 3
THE PLANNING, ORGANISING, LEADING AND CONTROL OF PROCUREMENT
Control makes it possible to regulate organisational activities to make them
consistent with the expectations established in plans, targets, and standards
of performance [7]. This is basically the process of monitoring and evaluating
all the functions of procurement – procedures, policies and control measures.
The person in control ensures that all procurement functions run smoothly.
Controlling the procurement function involves a variety of tasks and these are
discussed in the next eight sections [20].
3.6.1 BID PROCEDURES, POLICIES AND CONTROL MEASURES
Uniformity in bidding procedures and control measures should be enhanced
to ensure effectiveness and efficiency in supply chain management. The
process can be accomplished by implementing a uniformed procurement
policy; ensuring the bidding procedures are easy to interpret, cost-effective,
quick, and transparent and free of corruption; and implementing a supply chain
management system that is suitable for private and public institutions [21].
3.6.2 BID OR CONTRACT DOCUMENTATION
Bid documents define the rights, risks and obligations of the parties involved in
a contract and define the nature, quantity and quality of the goods, services or
works to be provided in the performance of the contract. The core documents
in the bids include the bid conditions of contract; specifications, data sheets,
and drawings; the bid itself; and a specific contract agreement stipulating
delivery standards and requirements. The uniformity of the bid and contract
documentation would promote ease of entry for new entrants or emerging
enterprises; cost-effectiveness; easier interpretation by new entrants and
emerging contractors; and a simplification of the documentation process [21].
3.6.3 SUBCONTRACTING AND OUTSOURCING
Subcontracting and outsourcing are allowed in normal procurement procedures.
In the public sector, they are encouraged in supply chain management because
they promote certain procurement policy objectives. There are two types of
outsourcing, namely, turnkey and partial outsourcing. In turnkey outsourcing,
the buyer minimises responsibility for the outsourcing process; doesn’t need
to have experience in similar projects; and expects the project to run smoothly.
In partial outsourcing, the buyer has more influence in price, rates, costs, staff,
technology, materials used and their quality [21].
3.6.4 APPOINTMENT OF CONSULTANTS
Consultants provide expert advice professionally and are engaged for a variety
of reasons. They may, for example, provide specialised services for a limited
period; impart superior knowledge; transfer skills and upgrade a knowledge
base while executing an assignment; or provide independent advice on the
most suitable approaches, methodologies and solutions for projects.