DHSM 707 – Procurement in Health

Table of Contents
Critical analysis and evaluation of the planning, sourcing, management of life cycle of
procurement of organization......................................................................................................2

Planning:................................................................................................................................2

Sourcing:................................................................................................................................2

Management:..........................................................................................................................3

Discussion and critical analysis of the various stages of implementation, within healthcare
sector, in order to improve the efficiency of the procurement process......................................3

Planning:................................................................................................................................3

Sourcing:................................................................................................................................3

Management:..........................................................................................................................4

Developing a procurement plan in order to develop procurement process, sourcing, contract,

and exit strategy for the organization and developing efficiency within the procurement life
cycle...........................................................................................................................................4

Justification of efficacy of the procurement plan for the procurement life cycle......................7

Identifying all the risks involved within the procurement processes within the organization...8

Building a comprehensive risk management plan for the procurement process within the.......8

Critical analysis of the need for SWOT framework for improving procurement management
within the organization...............................................................................................................9

The critical assessment of the contract formation process for suppliers and organization......10

Factors for evaluation...............................................................................................................10

Bibliography.............................................................................................................................11
Critical analysis and evaluation of the planning, sourcing,
management of life cycle of procurement of organization
Planning:
The procurement process life cycle includes the sourcing till exit strategy and all accurate
planning are carried in this manner as per (New Zealand Government Procurement Guideline,
2019). The need for purchasing the service or the product is first brought into immediate
attention for the service delivery and in this manner the whole task processing team
comprising of delegated authority and procurement team is generated. These authorities
handle information and research on the supply lines, in order to carry out smooth supplies.
Hence, the organisation next identifies the various vendors of the products and thereby makes
use of catalogues to advertise their services. Next the technical statement of the work is then
generated including the various functions to be performed and targeting the technical
specifications of the product that needs to be advertised. Also, in this stage all other existing
products are also verified. The planning process of the organisation uses the weight point
process for evaluation of the planning. The best suppliers having highly rated market history
and performance are selected, and the whole process is overview by a panel of evaluators
maintaining ethics and fairness within the whole process.

Sourcing:
The stage is the initiation after the quotation sending to the suppliers having good ratings, and
who are interested to become potential stakeholders. The request for quotation is used along
with request for interest and request for proposal. Within the procurement process all these 3
documents are very vital and serves important purposes to improve the overall process
(Maciel, 2018). Next the presentation is made by the bidders who are interested within the
process, and the weight point method is again used within the overall process to provide bid
to the highest qualifying bidder. The second highest bidder is selected during contingency
processes, when the first bidder is no longer interested. The fairness aspect is maintained, and
the selected bidder is made aware through formal consent and those who are not selected are
also provided details of their non selection. The whole sourcing process is done through an
evaluation template. Any form of conflict of interest is also resolved through these evaluation
panel members when some issue arises among the various bidders.
Management:
The negotiation of the supply is made based on certain factors like pricing, product quality,
conditions, delivery terms and others, and these factors are considered when the contract is
finalized. Moreover, through diligence any form of risk is averted by the organization.
Moreover, any form of outcome is also mentioned within the contract, and then signed by the
delegated officer, the procurement officer, and suppliers bided in presence of all the
authorities and procurement team. If the purchases are more than $100000 or any risks are
involved a legal officer is also appointed. Original copy of the contract is signed and kept
with the security purposes and scanned copies provided to all the stakeholders, and once the
product payment or any other process is done, the compliant are addressed by the evaluation
panel through the evaluation template. This helps in improving the efficiency of the
procurement team, and helps in improving the performance, and this also helps in achieving
80% or more efficiency in overall process.

Discussion and critical analysis of the various stages of

implementation, within healthcare sector, in order to improve the
efficiency of the procurement process
Planning:
Through proper planning processes through step by step execution proper format of following
the whole process is achieved which thereby improves the efficiency of the overall services
and improves the value for money. The clarity for any purchase is made by the manager and
the employees through different research development and numerous meetings. The
estimated product quality and product pricing can be developed through the advertisements
and the catalogues of the products. Again, the weight point method id used for the evaluation
of the best supplier for the organization in terms of quality prices, delivery and efficiency.

Sourcing:
The fairness, equality and accountability in maintained when selected bidders are provided
the formal invitation of joining. The above mentioned three documents are again used in this
scenario in order to make the process more formalized. And the detailed data for the suppliers
are then procured by the management team. Through this stage, the highest scorer is then
selected and then the bid is made, so that the quality and efficiency of the best bid is
maintained. The fairness within selection is ensured by the evaluation panel members, and in
order to protect the organizational ethics and reputation various legal compliances are
considered.

Management:
The main process of negotiation enables the organization to get high quality services and
other factors, at good prices, which improves their competitive advantage. The legal officers
are engaged when the contract price is higher, and many risks are involved. Moreover,
through this contract the value for money can be developed, improving the suitability of the
contract. From any form of legal issues, the contract terms are designed in such a manner as
to protect the reputation of the organization and helps in managing the terms further. Using
record maintenance also helps the hospitals in developing a sound system of keeping all
references intact. The team performance is also evaluated, and the justifiable cations
maintained within the whole process.

Developing a procurement plan in order to develop procurement

process, sourcing, contract, and exit strategy for the organization and
developing efficiency within the procurement life cycle
1. Establishing the procurement plan team

The initiation phase of any procurement process first involves the procurement team, which
gathers information, and which also identifies any form of requirement for the purchase the
product or services. The cross disciplinary procurement team is highly essential so as to
develop an agenda of the different products required from different arenas and delivering
better skills and experiences (New Zealand Government Procurement Process, 2011). All the
member of the procurement team usually consists of delegated authorities, hospital workers,
the procurement manager, procurement specialist, legal advisor and finance specialist. For
those within procurement team, experience in handling procurement few times previous is
important as it adds to the efficiency of the overall process by the skills and expertise, they
have from previous such plans.

2. Drafting data, work data and processing

In-depth collection of information forms various insights form different perspectives for the
procurement processes (McCrea, 2019). For the purpose of improving the corporate
governance and procurement a team is formed, and this team validates al the essential data
that is required and collected in order to develop informed decisions. The work plan is then
made through delegation of takes for each of the member to bring higher efficiency within
the plan and improving performance of each player.

3. Describing all critical areas, and the supplies which are procured

The promotion of product is carried out in this phase through the various catalogues and the
advertisements. Moreover, through this scrutiny the best in class product is elected through
specifications and its fitting to the organization’s quality delivery, and the procurement
product is now obtained, and all details pertaining to the product is registered. Moreover, all
stocks of items required is also provided consideration.

4. Analyzing reference price and delivery time limits

It is critical to audit the cost of the merchandise and enterprises that the association is eager to
obtain. The group can develop previous costs offered by similar suppliers to various
associations to gather competitive knowledge. This gives the group a baseline of the normal
offers. It is additionally critical to see delivery details as it will show if the provider is skilled
with the terms and conditions and conveyance times. In the event that items are not conveyed
on schedule, the association would endure extraordinary misfortune.

5. Analyzing all the source funding options

Funding is an essential concept in any planning and process and within the procurement
process as well, and the funds set by the organization is used for procuring goods and
services. The information for the total cash requirement is estimated and this is done by the
finance department to procure all the essential.

6. Adjusting budget

Budgeting is an essential financial aspect within organization and performing proper budget
gives a scope of the buying capacity of the organization (Biedron, 2019). The insufficiency in
budget leads to some essential products not to be bought, reducing efficiency of the service
delivery for the hospitals. Hence flexibility within budgeting is an essential need for
improving the procurement process. The budget layout can be developed through the ABC
analysis layout, and the overall financial layout of the procurement process can eb developed.
The adjustment within budget also helps in saving money in some times.
 7. Developing all purchase methods, management indicators

Purchasing the products provides all details like the type of product to be purchased, delivery
terms, specifications and configurations that is needed within the hospital setting. For public
tenders’ organizations can use the best bidder who will provide the best mode of delivery,
prices and quality through an analysis of the benefits and drawbacks, and after numerous
bidders do show interest within the procurement processes. The supply chain management
process of the organization needs to be made more efficient hence the right bidder needs to be
selected. All the evaluation of the different steps within the supply chain management
processes are taken into consideration, which adds to the transparency and the accountability
within the team and within the organization.

8. Finalizing all plans to purchase the supplies

It gives a point by point arranging that the group has done all through the acquirement
procedure. At this stage, it is significant for the group to legitimize that the best provider was
chosen who meets all the terms and states of the association. A composed duplicate of the
whole acquisition process is saved for future reference.

9. Implementing all procurement plans

The plan is implemented only when the written consent is provided, and all the departmental
verification is got prior to the procurement. The most important department while on
procurement is the financial department which issues the money required for procurement
process to take place. Through timely implementation processes, submissions are made in
order to reduce any forms of delays within the ordering process.

10. Monitoring and controlling procurement

Through controlling and monitoring stages within the procurement plan, the various
components of implementation of the plan is improved and efficiency developed (Westin,
2017). This stage helps in improving the total evaluation of the procurement process and
provides details whether the whole deal has achieved value for money for the organisation.
The service delivery is improved, and efficiency increased if monitoring and controlling
supplier actions takes place regularly. The rating scale of 0 to 10 is mostly used for
evaluating and monitoring and providing a score of the overall process, 0 being lowest score
and 01 being highest. He performance of the procurement team can be seen from these
ratings.

11. Defining all contract terms

As indicated by Lu (2018), contract terms gives anticipated that rules should the provider
which must be followed as far as item conveyance and legitimate ramifications. It would
guarantee that conveyances are done on schedule, the item quality is kept up and assembles
the connection between the purchaser and dealer. It would limit or stay away from the event
of dangers or clashes.

12. Exit strategy

The service continuity can be achieved via the exit strategy used by the organization, and all
the documents and contracts need to be safely kept in the future in security so that the
contract is valid and any risks can be mitigated. The exit strategy is mostly used in times,
when the contract termination date is near, and the new suppliers needs to be brought or
another new contract to be signed with the existing supplier. All the legal compliances are
maintained through the exit strategy, and this helps in protecting the organizational reputation
when a suppliers terminated form services when contract gets over (Tyler, 2019).

Justification of efficacy of the procurement plan for the procurement

life cycle
A collaborative team with cross disciplinary apporcah is highly essential in developing the
efficiency of the procurement plan (Fournier, 2015). The experience, skills in handling
procurement processes previously, and data collected from research is highly essential for
improving the standards and benchmarks for the total procurement process efficiency.
Drafting all the products needed, the prices, kept, helps in understanding the market value of
the organisation and helps in better decision making in future. Through the evaluation
template the ratings of the suppliers are evaluated and the highest scorer selected, which also
enables in better efficacy. As per Kolenko (2014) proper budgetary allocation is also an
essential means of improving the efficiency of procurement plan and maintaining a flexible
budget helps in procuring things, which can further develop organisation. All he detailed
experience of carrying out procurement is provided through a report by the team, acting as
statement of accountability. Moreover swift negotiation and funding, helps in gaining bets
warranty and discount options, and better products can eb procured through skilled
negotiations (Shonk, 2020). Monitoring, controlling are essential steps in evaluation helping
in improving evaluation by members further, and also improving compliance with various
legal requirements and government restrictions, so that all the stakeholders can be satisfied
through the overall process.

Identifying all the risks involved within the procurement processes

within the organization
The risks are unwanted obstacles which are eminent during any procurement process within
hospital organizations (Precoro, 2019). Although various steps are though very deeply so that
any contingency situation does not occur, but unforeseen risks from external environment
might crop up which reduces the efficiency of the procurement process. If the procurement
process is large, the team is formed. Next, for every procurement process assessment of
stakeholder engagement or inadequacy in assessment might bring risks. The roles and
responsibilities not mentioned might pose risk of overlapping work bringing down efficiency.
The power between buyers and suppliers are not mentioned within the process. Once contract
is provided, no formal notices are given, which reduces the transparency to the public or
customers as such.

Building a comprehensive risk management plan for the procurement

process within the healthcare organization
The risks can eb created during any process, and the best possible means of managing risk is
through internal analysis of the organization through the tools like SWOT or TOWS analysis.
The SWOT analysis uses strengths, weaknesses, opportunities and threats and thereby
provides distinctiveness of the organization within the whole industry. Moreover, through a
fact provided manner, the SWOT analysis can help in providing better understanding of the
risk within the strategic environment, in rider to mitigate them in future (Grant, 2020).
The strengths of the organization include their corporate governance, convenience for
customers, reputation formalized record management and contract management for
procurement process. The weaknesses include the issues in formation of the procurement
team, inflexible allocation of funds, and under delegation of the rights and responsibilities
that can decrease efficiency. The opportunities of the organization include compliance with
legal and regulatory environment, innovation, transparency, longer retain with suppliers.
Threats pertain to imbalance of power, lowered involvement of workers within decision
making, and reduced important of product lifecycle.

Critical analysis of the need for SWOT framework for improving

procurement management within the organization
This investigation has remarkably almost no or low expense. Subsequently, it is savvy for the
association. It would spare time too because it has a basic strategy for risk assessment. Luo
(2019), states that this model would empower the association to comprehend the need of
having a very much essential framework group. This examination would help the
procurement group in dynamic as what is best for the association. Besides, through this
investigation, the association will become more acquainted with its qualities and can exploit
it which consequently would bring benefit. The open doors can help the procurement group
to make estimation of cash contributed. Moreover, the shortcoming can be recognized and
improved in ideal way which could likewise spare the association from unanticipated
conditions. Shewan (2020), states that if risks are distinguished at initiation, it would be
effortlessly evaluated and forestalled, along these lines, there can be less probability of
contentions, reputational hurt, and lawful ramifications.
The critical assessment of the contract formation process for suppliers
and organization
The evaluation of the whole contract formation starts from procurement and ends till exit
strategy (Murphy, 2017). The whole process is rated through bidding and the supplier with
the highest rating is then asked to join the services after proper evaluation. The evaluation
provides an allowance for understanding all the efficiency of the selected supplier and a
contract is signed with the supplier in front of the authorise for procurement processes. The
contract is based on high negotiation that is developed for the organisational performance
achievement. The final evaluation is done by the delegated authority of the company and
considers how the supplier s it for the organisation. Upon signing the contract, all the conflict
of interest, unforeseen risks, confidentiality are attached within the contract. Fr order which is
higher than $100000 there might eb legal risks, hence a legal advisor stays while the contract
is being signed to clear all doubts. The original copies are then retained within secured locker
and scanned copes provided to all the parties to the contract for evidence.

Factors for evaluation

The evaluation process is essential for contract and procurement process and determine the
performance of the procurement process and supplier (Vijay, 2017). All aspects of the bid
and documents are essential factors for evaluation, and the next factors is the proper services
availed by supplier once contract is signed. Delivery, product status, and their queries are
needed from supplier during the whole process. Good quality is an essential factor, that
procurement team must consider while performing negotiation, and this is done through
testing, quality checks, and quality assurances. Keeping a contingency plan as per Hughes
(2018), is essential to mitigate crises. The contingency is ye another factor. Lastly, proper
supply chain management is of utmost importance, for customer satisfaction and proper flow
of goods and services, which improves delivery capacity (Hayes, 2019).
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