KB7035 Procurement and Supply Chain Management Assignment sample.
1. Introduction
1.1 Purpose of the report
Sunderland City council decided to make 1000 houses for rent and buy facilities for 2500 people. The purpose of this project is to develop a unique place to live for the people of Sunderland city where there is a carbon-neutral community in a wonderful location. This project helps to build a proper area for walking as well as a proper cycling network. People are able to have a proper transport facility. This project helps to build a healthy lifestyle for people and there will be less percentage of car dependency (case study).
1.2 Background
Sunderland city council is willing to make some cities in the heart of industrial cities. There will be 1000 homes in which 800 homes will be provided into their neighborhoods that are Vaux, Ayre’s Quay, Farringdon Row and Sheepfolds. In Vaux, Farringdon Row and Ayre’s Quay, there will be 367 units which are 45% of those new homes on the south side of the river. Other than this, there are 55% of the north side of the river at sheepholds (case study).
1.3 Key conclusions
The council of Sunderland city is willing to develop the lifestyle of the people of Sunderland city. Councilor is trying to provide facilities such as a proper cycling network, a walking area for those people and a proper facility to have faster transportation. They are willing to provide social infrastructure and community facilities. The aim of this project is to develop a high density of around 74 homes per hectare across the site.
2. Detailed procurement plan
2.1 Identification of clients and stakeholders
| Internal stakeholders | Roles of Internal stakeholders |
| Clients | One of the major determiners of projects as they seem to provide support to companies by making significant purchases (Aliakbarlou et al. 2017). This further tends to provide companies with information on what services and products are to be delivered to the target customer of the concerned company. |
| Project manager | Project managers tend to hold a very important place as they are directly linked with the entire project and are the most responsible person in this aspect. According to Famiyeh, (2017), project managers tend to manage the entire working of a project thereby meeting objectives as well as fulfilling the expectations of project stakeholders. |
| Technical and Financial service providers | This team tends to provide help in projects by giving support in both aspects of finance and technical fields. |
| Consultants | Consultants seem to help in building up a relationship that aims in building up a relationship catering to benefits and mutual trust. Consultant concerns feedback of stakeholders and tends to enhance business operations conducted by the company (Galazova et al. 2017). |
| Material and equipment suppliers | They provide raw materials that are required in building up a construction project envisioned. They Tend to provide quantitative and qualitative approaches within the project. |
| Site personnel | An individual recruited as site personnel provides an observation in sites whether any employees are working effectively or not. |
| Project sponsor | A project sponsor is an important person as that concerned individual tends to “monitor” and “control” the entire project on a strategic level (Ivanova et al. 2020). They seem to provide resources and thereby support projects. |
| Resource managers | The resource manager seems to influence the entire project as that person is responsible for properly managing the availability of resources for the project. This helps in the conduction of projects by effectively using available resources and maintaining the issue of sustainability (Jayawickrama et al. 2017). |
Table 1: Role of Internal Stakeholders
| External stakeholders | Roles of External stakeholders |
| External customers | External customers are the most important people as they are to consume products and services that are delivered by the concerned companies. Business operations of a company majorly depend on external customers and their preferences of meeting up their demands and requirements. |
| Government entities | Starting from the collection process and terms of taxes all other establishments and policies are defined by the government. “Payrolls”, “sales taxes” and “corporate income taxes” are defined by the government and all these policies tend to provide and determine the success of a concerned project. |
| Contractors and subcontractors | Contractors and subcontractors refer to the positive aspect of stakeholders in the entire project as they provide a favourable impact on the entire conduction of the project. Therefore meeting desired outcomes of the project becomes easier. |
| Suppliers | Suppliers tend to provide active contributions to concerned projects. According to Klimek (2020), although they don’t seem to get indulged in business aspects of a project still tend to determine the decisions and actions of the concerned project. |
Table 2: Role of External Stakeholders
2.2 Standard form of contract
The notion for construction of a standard form of content is majorly a contract between two respective parties that constitutes all three kinds of agreements such as “contracts of adhesion”, “boilerplate contracts” and “take it or leave it” contracts. It essentially promotes the idea that control will be taken by the “bargaining power” of the respective party (Lin et al. 2018). In this concerned case study company of Sunderland City Council tends to promote aims that will help them to achieve a “relatively high density” that will constitute around 74 homes in each hectare over the entire site project.
In this project, the contract form of FIDIC is more appropriate in the competition of projects on a global basis. This contract of FIDIC is drafted by the association of the “International Federation of Consulting Engineers” and they provide a standard that helps in conduction of a project as well as the process of installations of projects maintaining prime principles. It tends to leave out aspects of “geographical specificities” and “technical specificities” (Perrault et al. 2017). In the UK, standard agreement caters to three types of agreement such as “red”, “green” and “yellow” FIDIC. In this project standards of agreements that need to be incorporated are “green” FIDIC and “red” FIDIC. The “red” FIDIC will focus on providing the terms and conditions that are to be maintained while conducting the entire project and are to be designed by the employers of the respective company.
The company can follow certain tenders in order to make proper completion of the project such as “Negotiated tendering procedure”. This kind of tender follows two significant steps of which the first caters to “a pre-qualifying process” that will help the buyer in the demonstration of “PQQ” before the second stage. The second stage is the act of negotiation that relates to the short listing of the suitable suppliers who will effectively negotiate.
Figure 1: FIDC (Source: Created by the learner)
2.3 Providing road map
The road map is defined as a “graphical” and “high-level view” that concerns by over viewing the objectives and goals concerning a project and help in proving a strategic plan that will help in although the initiation of the competition often projects. In conducting this construction project by the company of Sunderland City Council, the use of “Gantt chart software” will be of immense help as it makes the entire process easier by developing a plan. Reviewing the plan of construction it is to be noted that the company needs to get finished off by the month of September in the year 2023 and the total amount that is estimated in this project is 160 million pounds. The entire project is divided into four consequent phases as “phase 1: Design/planning”, “phase 2: analysis”, “phase 3: development processes, testing, training” and finally “phase 4: launching, monitoring and revising”.
Figure 2: Road Map(Source: Soemardi et al. 2019)
2.2 Proposal of procurement of work and services
The notions of the proposal for the “procurement of work and services” tend to promote an important aspect as it will help in developing a proper development plan in order to effectively compete with the project taken up by Sunderland City Council. In analysing the case study it is acknowledged that the company had made a partnership with the “Vitality Life”. They seem to have made collaboration with the company of “Legal and General” (Guerlain et al. 2019). From this, it can be proposed that the company needs to follow the aspect of “Joint Venture or Partnering”. This moreover tends to provide help in the matters of handling and in providing appropriate solutions in times of adversity (Borja et al. 2019).
2.4 Scheme to reduce the complexity of budget
Analysing the key project features and key programme features that are to be taken in mind before implementation of a proper scheme such as “standardized designs”, “more clear market intelligence”, “jobs, training and supply chain” that will benefit the residents and the business of the “Sunderland”, “reduction in the cost” with 15 per cent as its ambitious target, “certainty in the improved programme”, “reduction in risks”, “improved and superior innovation” and the “improvement in the relationship status” all through the supply chain (Jin et al. 2020). According to Kant ova (2021), the company should execute meetings that will suggest tools and equipment concerning the “determination of the budget” that will include “aggregation of the cost”, “applying expert judgments”, “analysis of the reserve”, “historical relationships”, and “funding limit reconciliation”.
The company can follow the above-mentioned tools that will further help the company of Sunderland City Council with providing a direction to the organisation and as well help in determining the priorities at that very moment of time. The company can use “analogous estimating” that will help in budgeting up the cost by an effective consideration of the relevant parameters such as “scope”, “quality” and “term of execution” (Kolobova, 2019).
2.5 How clients will be involved in each stage
It is quite important that every step of the construction project needs the involvement of the clients as internal stakeholders. This will further help in providing an assurance of the arrangements by suitable management strategies. In involving the clients an individual needs to be appointed in the role of a “principal designer” who will make a necessary selection and the appointments. Before the initiation of a project, the internal stakeholders need to sit for a meeting to consider the major determiners that have a great impact on the concerned project.
In this stage, the clients can be involved by actively negotiating them and extracting the information of their actual requirements and needs. Therefore, it will help in promoting the aspects of sustainability as the clear vision of the demands of the clients will help the project manager to make proper decisions in making a proper design that will be effective in merging up with the demands of the clients as well the issues regarding sustainability (Windapo and Cloete, 2017). According to Svanberg et al. (2018), the process of reviewing the proposals of the project concerns effective management of time and cost, the project manager needs to apply effective strategies that will help in enhancing the aspects of “customer satisfaction”.
2.6 Other specific consultants and participants
In addition to the internal stakeholders, there is the presence of specific consultants and participants that tend to create a great impact on the conduction of the entire project. The business consultants are important as they help in interlinking the processes of collaboration between the agreements of the joint venture by both the companies thereby mitigating the issues faced by both the companies in the concerned project (Soemardi et al. 2020).
The company should be quite concerned with the policies as well as rules and regulations by the local government and whether they are maintaining all the rules or not. The company should provide focus on the activities regarding the environment, thereby ensuring the issues of sustainability. This further will help in maintaining the laws associated with the protection of the environment as a whole. If the environmental activists are not satisfied with the project owners they may create a threat and delay the construction project.
2.7 Mechanism for pricing and payment for the project
The aspect of “Mechanism for pricing and payment for the project” is quite important in conducting a project. The notion of pricing mechanism is quite a complex process that suggests a way of describing a match with price between the buyers and the sellers. The notions of both “fixed pricing” and “variable pricing” is quite important as it is associated with the pricing strategy dependent on “customer segmentation “. The company of “Sunderland City Council” also needs to focus on “real-time-market pricing”. This pricing mechanism tends to be quite important as depending on the market the pricing strategy of the concerned project is determined.
3. Supply chain efficiency
In this case, the council of Sunderland city has some partners such as Legal and general, the housing market and insurance giant are willing to provide support in this project. Vitality life is steps ahead and collaborates with councillors in this project. The councillor is willing to provide various facilities to people and in this case, the council should have proper supply chain management and a proper financial backup that helps to fulfil the target in the meantime. Councillors and vitality have provided £160 million for the development process. There are 1000 homes with the facility of a cycling network and a passage with a walking area (case study).
Among these is raised by an equal collaboration that is why they have to look after proper supply chain management and proper suppliers that can provide proper facilities and raw material to maintain the efficiency of the project. The council has to choose a proper constructor for this construction program and in this case, they have to consult to set a proper project plan and take care of its execution process. Council as their own estates’ team that help they to explore aspects and they have to consult with consultant designers. 45% of houses will be on the north side of the river and 55% of houses will be situated on the south side of the river.
In this case, the manager has to focus on experienced workers and their work efficiency. Other than this, there is a high risk of having sudden risk factors that can create hurdles in the execution process of a report. In this case, the manager has to provide a training development process to those workers and employees. This helps to improve the skills and performance of those employees (Burhan Ismael et al. 2021).
Workers and employees will be able to take work pressure and mental stress about this project and they will be able to improve their individual skills. Workers and employees are prime members who will help to reduce the cost of the project by reducing the percentage of waste materials and improving work efficiency that will help project managers to control their workers and fulfil all aspects of the project in the meantime. The project manager has to research through the market about suppliers who will supply necessary raw materials and other equipment in the meantime. This will boost the workflow of projects and the implementation of advanced technology will help employees to perform their tasks effectively.
Figure 3: Advanced technologies in this project (Source: Golosova and Romanovs, 2018)
There are various advanced technologies such as AI technology, block chain technology and big data analysis processes. According to Torresen (2018), in this project, AI technology will help managers to develop proper strategies and effective decision-making processes in problematic situations. This will also help to provide training sessions to those employees and workers to improve their individual skills. Other than this, there is a block chain data analysis process that will help to improve the supply chain process of the project (Golosova and Romanovs, 2018).
Block chain technology will help to reduce the cost of supply chain procedures and improve the security of contracts. As stated by Oussous et al. (2018), the big data analysis process will help in the risk management process and it also helps to collect data and information from another market that will help to mitigate overhead costs. This process will help to maintain the relationship between employees and managers and it will be able to have greater innovation. Therefore, the manager has to maintain the proper cost of every task that will help them to reduce the cost of the project with an ambitious 15% target.
4. Recommendation and Conclusion
Recommendation
Data collection
a manager has to go through a process of collecting data and information processes that will help them to understand possible issues and risk factors that will help them to develop an effective plan and strategies to improve their working procedure (Olsson and Sahlgren, 2021). Other than this, this will help to mitigate the cost of this project. This will help them to save 15% for their other facilities. Therefore, this will help them to have a proper supplier for their project who will provide raw materials and equipment at the proper time.
Technical team support
The manager has to include a proper technical team for the utilisation process in this project. This technical team will be able to use those advanced technologies at their full potential that will help to mit9 gate risk factors and reduce the cost of this project. Therefore, those workers will be able to repair if there are any technical issues that happen in the middle of a project to maintain that will help to resolve these issues as soon as possible. According to Krage et al. (2017), the technical team will help to look over the work of those employees and provide their information about their issues that will be able to improve the project.
Financial backup
The manager should have an overview of the utilisation of the project amount. Other than this, there should be a proper financial backup that will help the problematic situation of the project (Hammarström and Virtanen, 2019). In the case of completing this huge project financial backup is one of the most recommended things that will help to build strategies and plans.
Conclusion
This project is based on developing 1000 homes for 2500 people of Sunderland city. In this report, there are brief descriptions of proceeds and information about what will be there in that area. The procurement plan has been mentioned briefly in this report along with procurement of work and services. Other than this, there is information about stakeholders and clients with specific concealment and participants. Clients are interested in involvement in their responsibility. This helps to get mechanism pricing and tendering arrangements. This report provides an overview of the project and its cost that have to be maintained by the councillor of Sunderland city.
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