Procurement Planning


Procurement planning is determining what to procure and when. The first contract management problem for the buyer is to decide which goods and services to provide or perform in-house and which to outsource. This make or buy decision requires consideration of many factors, some of which are strategically important. The decision to buy creates a project that will be implemented in cooperation with an outside organization that is not entirely within the buyer’s control. As a result, an element of uncertainty and risk will be introduced for the buyer.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Virtual Corporation


As more and more companies are outsourcing various organizational functions and are paring together down to their core competencies, they might not be able to perform all the tasks required to complete a project. However, they certainly can perform their own highly specialized part of it very well. Now, if you put together several organizations whose competencies compliment each other and have them work together on a special project, you’d have a very strong group of collaborators. This is the idea behind an organizational arrangement that is growing in popularity—the virtual corporation. A virtual corporation is highly flexible, temporary organization formed by a group of companies that join forces to exploit a specific opportunity.

Technologies are changing so rapidly and skills are becoming so specialized these days that no one company can do everything by itself. And so, they join forces temporarily to form virtual corporations—not permanent organizations but temporary ones without their own offices or organizational charts. Although virtual corporations are not yet common, experts expect them to grow in popularity in the years ahead.

My Coultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

Customers as Competitors


If self-service customers can be viewed as resources of the firm, or as partial employees, self-service customers could in some cases partially perform the service or perform the entire service for themselves and not need the provider at all. Customers thus in a sense are competitors of the companies that supply the service. Whether to produce a service for themselves (internal exchange)—for example, home maintenance, car repair—or have someone else provide the service for them (external exchange) is a common dilemma for customers.

 Similar internal versus external exchange decisions are made by organizations. Firms frequently choose to outsource service activities such as payroll, data processing, research, accounting, maintenance, and facilities management. They find that it is advantageous to focus on their core businesses and leave these essential support services to others with greater expertise. Alternatively, a firm may decide to stop purchasing services externally and bring the service production process in-house.

 Whether a household or a firm chooses to produce a particular service for itself or contract externally for the service depends on a variety of factors. A proposed model of internal/external exchange suggests that such decisions depend on the following:

a)    Expertise capacity

b)   Resource capacity

c)    Time capacity

d)   Economic rewards

e)    Psychic rewards

f)     Trust

g)    Control

The important thing to remember is that in many service scenaries customers can and do choose to fully or partially produce the service themselves. Thus, in addition to recognizing that customers can be productive resources and co-creators of quality and value, organizations also need to recognize the customer’s role as a potential customer.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight