By and large with the alignment of the Vision and Mission of the Kakamega County Assembly, Procurement Department carries out procurement of services and products on behalf of Kakamega County Assembly.
Procurement is the acquisition of goods and or services. It is favorable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location.
- Cooperative supplier relations — Leading Institutions and companies realize that suppliers offer value that is not present in their own entities. These entities integrate strategic suppliers into programs that involve supply, such as new product development and cost reduction. They also understand that suppliers must achieve profit margins sufficient for them to meet their own business plans and to invest in new technologies, facilities, equipment, and talented people.
- Culture of continuous improvement — Entities that have achieved best practices in procurement do not stand idle and admire their accomplishments. At all levels, they seek to learn from others and to continuously advance their practices and processes.
- Cross-functional approach — To function at an optimum level, supply management must include not only the procurement group but other corporate functions that can add value through interacting with suppliers, such as technology, logistics, manufacturing, operations, distribution, and research and development, to name a few.
- Investment in procurement/supply management — Leading institutions invest in training and development programs for their own personnel and often for suppliers. They also invest in communications and other technology.
Focus on total cost of ownership (TCO), not price.
Instead, they consider many other factors that affect the total cost of ownership. This makes good sense when you consider that acquisition costs account for only 25 to 40% of the total cost for most products and services. The balance (and majority) of the total comprises operating, training, maintenance, warehousing, environmental, quality, and transportation costs as well as the cost to salvage the product’s value later on.
- Optimize company-owned inventory.
The global economic downturn means that more chief financial officers have put inventory on their
radar screens, and their financial teams are constantly looking for new ways to improve the bottom line and reduce working capital. Supply chain organizations should therefore constantly review their inventory quantities and strive to keep them at an optimal level.
- Establish appropriate levels of control and minimize risk.
Supply chain management policies and procedures should follow an appropriate sequence and structure, and it is important to review them frequently (if not constantly) and bring them up to date. Keeping them realistic and easy to understand and follow will help to ensure compliance. It is certainly possible to go too far in establishing policies and procedures