Question

Scenario: Will Fence owns a 70-acre large timber and Christmas tree farm. The Christmas farm gets busy in August and September when Will identifies and flags the trees suitable for Christmas season. Starting in October, the flagged trees will be cut, baled, and trucked to the storage yard where they will stay until shipped. The storage yard is situated in an area that offers shade and protection from the wind to maintain the freshness of the tree. The trees are stacked with the tops locked together to keep the sun and wind away from them. Will has just purchased an additional 40 acres and will need to expand his storage yard by 40,000 square feet. The budget for this expansion is $55,000. Will has hired your team to design a process to contract resources to expand the storage yard.

Question: Description of the contract resource procurement process (from start to closure) from the scenario.

Answer 1

Ques- Description of the contract resource procurement process (from start to closure) from the scenario .

Answer-

Expansion of a Storage Yard

The expansion of the storage yard will involve some procedures that must be into consideration to come up with the most efficient and budget constraint plan.

Contract resource procurement process.

The project procurement process is the most efficient method of forming a healthy relationship between the Will Fence’s company and other external contractors so as to obtain and evaluate all the procurement particulars for the project to take place.

The first procedure is recognizing the need for expanding the yard or specifying the reason for the expansion. For the purchase process to commence Will Fence must identify the necessary materials that he needs so as to purchase them. The classification of a purchasing want is the first procedure

The second step is specifying the want or need so that Will Fence’s company can come up with a clear way of evaluating the requirements for various goods. The materials that are necessary for the expansion of the yard must be available and in the best condition.

According to the garden expansion, some ideas should be put into consideration so as to select a reliable supplier of materials needed.

The third step is evaluating the options of the provider whether or not to acquire the services. The best choice for Will Fence is to determine the best vendors who can expand a yard.

The examination of the seller is essential because it will help Will fence in getting the prospective suppliers who can offer the explicit materials according to the specifications of Will Fence company.

The fourth process is the determination of the prices of the materials and the terms and conditions for supplying. After Will Fence has made the most favorable selection of the most competent contractors, both firms must respect each other’s terms and condition so that they can maintain a profitable relationship that has no issues. In this stage, the negotiation of prices between Will Fence and the suppliers will be taking place.

The fifth step is issuing a purchase order so that the formal contract can be applicable in buying the necessary materials that Will Fence will need to expand his storage yard. In the purchase order, there is the outlining of the prices of the commodities, specific details about the product and the terms and conditions of the materials. The high stage is the final procedure involving the procurement process.

The contract resource procurement process will assist Will Fence in negotiating the best price because he will request for a bid from the contractor and he will be able to know if the pricing range that the contractor is willing to supply the materials with is competitive or not. Will Fence will present opportunities to the contractors, and that will help him negotiate the price.

The best explanation to Will Fence about the efficiency of the procurement process is that it will result to cost savings by enabling Will Fence to evaluate the exact cost savings by procuring the materials and services at the best prices. The procurement management process will facilitate better honesty in Will Fence’s company about the firms spending and savings.

The expansion of the yard will be achievable because the contractors will be fully prepared to lead to the provision of high-quality goods and services and delivery will be on time. Will Fence will be able to identify performing vendors and the underperforming suppliers.

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