A newly founded construction company was faced with the challenge of introducing a purchasing process that was optimized for results and as low in corruption as possible. As the process owner, I designed the following processes in coordination with construction site managers and the owner:
- Purchasing process for services
The starting point is the announcement of the need by the construction engineering department, which prepares an anonymous invitation to tender. The purchasing department, which reports to the CFO, sends the tender documents including general terms and conditions, defined payment terms, etc. to potential providers. The management reserves the right to forward the documents to other providers without communicating them to the specialist departments.
The coordination of the response to queries is carried out by the purchasing department, whereby all responses are communicated back to all providers.
Bids must be submitted by mail in a sealed envelope by a specified deadline. All documents will be opened collectively in the presence of the legal department. The 3-5 best bidders will be invited for talks. After the 1st round of talks, the two best bidders are invited to negotiations in parallel, the award is fixed after the 2nd round of talks (exception: new tender).
- Purchasing process for (small) materials
The goal is to largely process through framework agreements to be negotiated annually, the process for concluding framework agreements corresponds to the award process for services.
For materials not purchased through master contracts, the following applies.
The construction engineering department announces requirements in weekly meetings with the purchasing department. The purchasing department, which reports to the CFO, sends the tender documents, including general terms and conditions, defined payment terms, etc., to potential suppliers and coordinates responses to possible queries. The order is placed by the purchasing department.
By implementing these processes, not only favorable purchase prices were achieved, but also attempts at bribery by suppliers were reduced to a minimum.