1) Key Responsibilities:

1. Searching suppliers
2. Prepare & Issue RFP
3. Supplier Evaluations
4. Contract Drafting
5. Issue Purchase Order & Contract Execution
6. Contract Renewals & Extensions
7. Supplier Management
8. Upholding company policy & SOPs

2) Key Performance Indicators:

1. Cost Savings : Money saved against existing spend

1.1. Cost reduction
1.2. Consumption reduction
2. Cost Avoidance : Money saved by avoiding unnecessary costs
2.1. Penalty/over-consumption charges avoidance using negotiation
3. Turn Around Time : from PR to final contract/Agreement is signed & PO is issued
4. Numbers of Contracts Signed/Renewed
5. Numbers of Suppliers On boarded
6. Level of Collaboration with Other Internal stakeholders & departments
7. Adherence to company policy & procedures
8. Quality of Contracts

3) IT Governance Structure:

1. Centralized
2. Decentralized
3. Federated

4) Key Roles:
1. Project Manager: manage end to end project
2. Customer: Define requirement
3. User: uses the service
4. Sponsor: authorizes budget

5) IAAS (Infrastructure as a Service) - Cloud computing service - Microsoft Azure, Amazon Web
Service, Google Cloud Platform; rent on usage basis:

1. Processing power
2. Memory
3. Storage
4. Network

6) SAAS (Software as a Service) – Salesforce, Microsoft Dynamic 365 CRM software – rent software
like subscription
7) IT Procurement Categories:

1. Hardware:
1.1. Computers
1.2. Servers
1.3. Security Equipment
1.4. Routers
1.5. Switches
1.6. Storage
2. Software:
2.1. Operating System (Windows, MAC)
2.2. Workplace Computer Apps (MS Excel)
2.3. Design/Engineering Apps (AutoCAD)
2.4. Cloud Based Apps (Salesforce, Service Now)
3. Network
3.1. Wi-Fi routers/access points
3.2. Dark Fiber
3.3. Internet
3.4. LAN/WAN
3.5. Point to Point Links
4. Utilities
4.1. Printers
4.2. Video Conference Equipment
4.3. Projectors
4.4. IP Phone
5. Professional Services: consultant services for
5.1. Specific Tasks
5.2. Projects
5.3. Integrations
5.4. Large-scale Implementations
5.5. Change Management
6. Outsourcing

8) Hardware Cost Components:

1. Hardware Equipment cost
2. Maintenance cost (Repair & Returns)
3. Spare cost
4. Support Services Cost from OEM & Third party Maintenance support cost from Distributor: SLA
types
4.1. 8x5xNBD
4.2. 8x5x4 Hours
4.3. 24x7x4 Hours
5. Delivery cost
6. Installation/Configuration cost
7. Any Embedded Software/License cost
7.1. Perpetual License: Life time, one time charge + Additional maintenance charges (optional)
7.2. Term/Rental/Lease License: Annual License + Annual Maintenance Charges
7.3. Subscription based License: Cloud based application
9.1) Buying Options:

1. Outright Purchase (pay upfront)

2. Capital/Finance Lease (pay monthly or annually)/Rent to own
3. Operating Lease (pay rental fees-supplier asset)

9.2) Considerable Factors

1. Company’s cash flow situation

2. Useful life of the equipment
3. Maintenance costs

10) Hardware buying checklist

1. Check for is Contracting Entities – like trade restriction / country/ vendor
2. Check for detailed Bill of Material
3. Is there any embedded or associated software required
4. What is the Associated Software License type & term
5. Maintenance type (L1,L2,L3); SLAs; Escalation Matrix
6. Renewal period and Contract term
7. Shipping Address, Destination Address
8. Contact details of recipient
9. Inco Terms
10. Installation requirements

11) App Types based on Installation:

1. Desktop based
2. Server based
3. Cloud based

12) Things to remember while buying software:

1. License Role – based on functionality

1.1. Development License – for customized software
1.2. Testing License – for customized software
1.3. Production License – ready to use
2. License Metrics
2.1. Server License (can be limited or unlimited users)
2.2. Node Locked License (1 computer = 1 License)
2.3. Floating/Concurrent License (Single License, Multiple users) Ex-Floating 1/10
2.4. Named User License (1 License = 1 User, associated with user ID)
Ex-Salesforce, Microsoft M3 65
2.5. Site based License (1 License = all users at 1 site) very expensive
2.6. Enterprise Wide License (1 License = all users at 1 company)
3. License Pricing
3.1. Perpetual License: Life time, one time charge + Additional maintenance charges (optional)
3.2. Term/Rental/Lease License: Annual License + Annual Maintenance Charges
3.3. Subscription based License: Cloud based application
13) Buying Network:

1. Internet
Cost components: Port Bandwidth charge, Last Mile charge
2. Point to Point Connection
Cost Components: Point to Point charges, A end last mile/Local loop charges, Z end last
mile/Local loop charges
3. MPLS (Multi Protocol Label Switching) Network
3.1. Virtual Private Network over Internet-over 2 or more locations; same as above costs
3.2. Network Availability Ex 99.999% uptime SLA called 5 9 th SLA (suppliers commit to SLAs)

14) Type of SLAs:

1. Support Services SLAs : response & restoration times in case of failure

2. Network Related SLAs (Network uptime)

SLA (uptime) Penalty

99.99% and above No Penalty
98.50% - 99.98% 5% of Monthly fees
3. Escalation Matrix for SLAs : Frontline Representative> Team Lead> Senior Manager> Head of CS

15) Mobility Services:

1. Select one corporate wide supplier

2. Reporting and transparent billing mechanism
3. Limit roaming
4. Have corporate wide Mobility policy
5. Line terminations and usage, review Monthly

16) Consultancy Services:

1. Buying Employee working hours

2. Consultants work on hourly rate basis
3. Rate cards Mechanism depends upon Experience level & Location
4. Full Time Equivalent = Full Time Employee
1 FTE = 40 Hrs/week x 52 weeks/annum – Holidays
17) Sourcing Process:

1. Check for Project Charter & Budget approval

2. RFP
Technical requirements
Commercial requirements
General RFP information
3. NDA
4. Received proposals, check them for below & compare
Responsiveness (meets requirement/evaluation criteria)
Responsibility (able to execute work)
5. Short Listing
6. Negotiation & Provide recommendation
7. Final decision must be in hands of Evaluation Committee
8. Start contract forming activities with help of legal team
9. Take final approval of sponsor
10. Contract Award & communication to all suppliers
11. Contract sign with selected supplier
12. Post activity managed by Contract Administrator
13. Track Performance

18) Contract Documents:

1. Master Services Agreement: General T&C, Indemnity, IPR Rights, Boilerplate clauses
2. Statement of Work: Scope of work
3. Product Manual/ Service Schedule
4. SLA Document: KPIs, Service Levels & Penalties
5. Support Service Documents: L1,L2,L3 Services explanation, escalation matrix
6. Data Privacy Agreement: GDPR Related
7. Purchase Order
8. Customer Order Form: from supplier to customer
9. Other: Supplier Ethics and Compliance, Change Management Procedures, IT Security Policy

19) Procurement Process:

1. Need/requirement
2. Purchase Requisition
3. Approval
4. Bid Solicitation
5. Bid Submission
6. Bid Tabulation
7. Bid Evaluation
8. Bid Award
9. Purchase Order
10. Goods Receipt
11. Invoice Receipt
12. Invoice Verification
13. Invoice Reconciliation
14. Payments