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By Margaret Gilbert and Anthony English, 251 pages, published July 19, 2017
Amazon's Description:
Procurement is undertaken daily without giving due consideration to possible risks and the means to manage risks … whether they are high, medium or low. It is unfortunate that buyer and supplier often undertake procurement without risk considerations - a risk in itself.
Procurement requires risk management plans to be put together for each procurement and to establish what risks are present and the means to reduce or eliminate.
Buyers can at times expect suppliers to ‘wear’ the cost of risk. This leads to suppliers either ‘wearing’ the cost or passing the cost on to buyers.
It is time that an honest discussion occurred between both parties so that risk is managed in better ways, such as cost sharing.
The book covers:
What is risk – for both buyer and supplier
Risk applying to procurement
Risk management plan
Risk and procurement strategy
Risk in relation to contracts
Risk in relation to contract management
A better alternative for buyers and suppliers working together
Supplier risks across the procurement cycle
Organisational risk
There is a real need for vision as to all the issues surrounding risk.
This book presents a powerful case for the sharing of risk between buyers and suppliers. It explains how a strong, trusted relationship between both parties is a better result for the buying organisation overall.
Often the attitude is one of: why worry? We have to be more focused with respect to risk.
Having a risk management plan would be useful.
Risk should be considered from the point of view of both the buyer and the supplier. It is the role of the supplier to highlight risk early on in the procurement process particularly where there is a significant risk—either to the buyer or the supplier.
Learn how to conduct procurement in the best way and to manage risk that provides for best procurement outcomes.
The procurement world is ever changing and time issues provide conflict between Business As Usual and looking at procurement strategically. Procurement can be a significant cost for the organisation. It is interesting, therefore, that what is often forgotten are the risk factors.
Each procurement should have a specific risk management plan that outlines the high, medium and low risk. Equally, consideration should be given to the organisational risk.
Risk is often a silent subject and there is the assumption that risk is the responsibility of the supplier who is expected to ‘wear’ the cost. In reality suppliers ‘pass on’ the cost through their pricing.
It is time to have a more honest debate on this issue.
This book looks at procurement and organisational risk and relevant issues.
It is interesting that risk is not given much attention until something significant happens and then there is mass confusion about what steps to take.
It is a significant worry that procurement is carried out by both buyer and supplier without giving much thought to risk issues. It is more by luck than good management that more substantial issues do not arise.
There is a better way to undertake procurement.
This book is a practical guide, rather than a theoretical text book. It springs from the authors' deep industry experience. Margaret Gilbert has published over 30 books in the Contract Matters series. She has worked for many years as both a buyer and a supplier. Anthony English provides a supplier's perspective in how risk is (or isn't!) managed in the procurement process.
Simple, practical advice for buyers and suppliers to help streamline the procurement process.
eBook is free at time of posting. Please check price before buying.
It's not rocket science 😋