-50%
Solution
Value for money is defined in CIPS (2024b) as “strategy to analyse costs to identify how costs are reduced and controlling opportunities to ensure efficiency and maximise profitability”. In procurement function, this is by comparative analysis of costs and alternatives in place with quantitative and qualitative aspects put into account. QRC procurement function attain the process by inviting, evaluating, negotiating and sourcing strategy for identifying value for money outcomes. To support the process, comparative analysis of 2023 and 2024 amount of spend in catering services, the value for money outcomes would be achieved;
Table 6:Value for Money Outcomes in QRC Procurement function
Source: QRC Internal documents
In line with table 5 illustration, the savings in costs is evidenced in the catering and cooking equipment. This is despite of corporate catering increasing owing to the increase in 40% of the catering companies interested in facilitating their employees through QRC transport service.
Further, for ensuring value for money outcomes is achieved, QRC PS&M follows 4P’s strategy to identify scope of satisfaction of customers 4C’s. The rationale of this is that sustainable strategies are essential in the organisation successful practice. This inform necessity for strategic sourcing which is best achieved by modernising their operations and leveraging on technology and innovativeness in negotiation. This is at the same time ensuring integration of their capacity for management of entire stakeholders relationships. A summary of 4P’s relationship is shown in the following;
Figure 8:4Ps application to achieve 4Cs for purpose of value for money outcomes
Source: CIPS Module Notes
Hence, in line with the illustration, value for money outcomes can be achieved by ensuring prioritisation of the procurement cycle. By working in collaboration, evaluation of all costs and prices and the total costs of ownership would be achieved. The staps followed is illustrated in the following;
Figure 9:Procurement Cycle and PS&M Function
Source: CIPS Module Notes
The process of value for money outcomes would be achieved by prioritising on the procurement cycle and progressing to finality (Malek & Gundaliya, 2021). This is improving capacity of balancing quality, efficiency and economy of scale with optimum solutions used to develop best objectives
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