Procurement and Risk – Use Microsoft Excel to create tools to identify and address the risks

After a long gap, I found time today to write in my blog about Procurement Risks.

So, What is risk?

The Random House Unabridged Dictionary defines risk as, “The exposure to the chance of injury or loss; a hazard or dangerous chance.”

In any procurement function there are these elements of risks; the auditors always pick them up!

Why we only realize when auditors questioning the credibility of a procurement transaction? Why we are unable to identify these risks prior to its occurrence?

The answers to these questions are either we never had a mechanism to identify and address the risks or we never had the required tools to address the risks.

I thought to finish this subject by start writing about few of the risks, and I thought I could provide a helicopter view of this subject by writing about few risks and say “That is all folks!”, but once I approached the core of this posting I realized how difficult it is to explain the depth of this subject in one post.

BTW, the procurement risks can be classified under following categories (get ready to scroll and scroll);

Strategic Risks
Process Risks
Information Risks

Supply Chain and Tender Evaluation

Hi There,
My second post, it is all about tender evaluation. Transparency is the backbone of procurement function. Transparency can only be assured when a supply chain professional develops competition among suppliers. Also it is critical that a Supply Chain professional need to prove the stake holders based on what criteria a supplier is selected and what thresholds prompted to award a contract to the supplier and how he / she has selected a supplier.

I am sure this can be handled with the help of high-end procurement or contracting software but again a certain amount of manual interaction and customization is required to make this happen.
Why this all hazels, when you can use Microsoft Excel to do this job. I have attached two screen shots which would give you a better idea on how it looks like and a soft copy can be obtained by sending me request for the template please.