Define procurement and explains the relationship between procurement strategy and the business case in the construction industry

The water utilities sector is capital intensive and dependant on complex supply networks in the delivery of services. Procurement is a critical activity in this delivery. Generally, the value of external expenditure on procurement of goods and services amounts to around 55% of the revenue of water utility organisations (such as Thames Water; Southern Trent Water, Scottish Water etc). Procurement makes a substantial contribution to the overall cost or expenditure of operations and risk within the organisations supply chains. To ensure success, it is critical that organisations in the water sector strive for continual improvement in procurement and implement procurement strategies that fully align with or is integral to the organisations overall strategic vision and objectives. Continual improvements also mean not only adopting best practice, but also embracing innovation and shaping best practice. Procurement outsourcing is regarded as an innovative way to improve the procurement practice in the water utilities sector. The Water Services Regulation Authority or OFWAT is a non-ministerial government department in England and Wales. In Scotland, the equivalent is the Water Industry Commission for Scotland. They provide information, as requested, to the Treasury; the National Audit Office and the Public Accounts Committee. As the economic regulator of the water sector these organisations role is to help the sector build trust and confidence with customers and wider society. This means provoking, challenging and where appropriate leading the sector, to ensure it has clarity on what customers and society expect; overseeing how the sector is performing; seeking assurance that service providers are acting efficiently, on the basis of good information, a good understanding of the responsibilities and relationships they have and overall being ready to step in, if service providers fall short. You have been asked jointly by OFWAT and the Water Industry Commission for Scotland to write a report that, – Defines procurement and explains the relationship between procurement strategy and the business case in the construction industry 30% – Defines procurement outsourcing in the in the context of Water utilities sector 30% – Explains are the pros and cons of outsourcing procurement in general and the water industry in particular 15% – Explains the key issues to be taken into consideration when making the decision to outsource procurement and when evaluating and selecting an outsourced procurement service provider? -15% – Presentation 10% Word Count: 2300

 

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"