The procurement environment of the project will have an important impact on the formulation of the procurement strategy and the implementation of the procurement plan. The procurement environment includes the macro environment and the micro environment. The macro environment refers to the external environment that can affect how and how the project organization purchases, including changes in national macroeconomic policies, adjustments in fiscal and financial policies, fluctuations in market interest rates and exchange rates, inflation and its trends, and political situations such as wars and strikes. Volatility, seasonal changes in the market and other factors. The micro-environment refers to the internal conditions of the project organization, including organizational policies, methods and procedures that the project organization may adopt in procurement, project funding status, site, road, dock and other material receiving conditions.
Under the premise of conforming to the principle of micro-environment, those who make effective use of the macro-procurement environment will scientifically organize material supply and effectively reduce procurement costs. The specific methods are as follows:
1. In the buyer's market, use the fierce competition among suppliers (mostly manufacturers) to organize supply
The characteristics of this supply method are sufficient and stable supply, ideal price, payment for goods can be deferred, good service, and a considerable proportion of materials can be directly delivered to the construction site. After 2000, the Bangladesh cement market is a buyer's market. Small and small state-owned cement plants with well-known brands such as Japan Pacific, South Korea's Hyundai, Hong Kong's Seventh Ring Road, Mexico's Cemax, local Tiger, Wuma, Shan, Scan, etc., and other brands. This situation.
2. Use foreign exchange and exchange rates to drive down purchase prices
Overseas projects have a certain percentage of payment in US dollars, which provides conditions for us to use foreign exchange and exchange rates to reduce procurement costs. As the world currency, the US dollar is stronger than that of the less developed countries in Southeast Asia. It is possible to sign a purchase contract with suppliers that is priced in local currency and settled in US dollars, and the exchange rate on the day of delivery of the materials is converted into US dollars for payment. This way, as the local currency continues to depreciate, the same amount of goods will be paid in fewer dollars. Suppliers can get national tax rebates on foreign exchange business income. This cooperation can last for a period of time, but it is restricted by the national tax rebate policy. In recent years, this supply method in Myanmar and Bangladesh has achieved relatively satisfactory results.
3. Seasonal material preparation, use and avoid market deviation of material supply and price
The seasonal deviation of the market has the following two aspects: First, the construction is affected by the climate, and the construction is in the off-season (such as the off-season construction in winter and the off-season construction in the rainy season), and the price of materials generally declines; Second, the production and transportation of materials are affected by the climate and climate. Affected by factors, material prices deviate from normal levels.
Therefore, seasonal material preparation also includes two meanings. First, make use of the reduced demand and price of materials in the off-season construction, and appropriate materials (such as the implementation of the FIDIC contract and the prepayment clause for materials can be fully prepared), so that the off-season is not short. , you can also report the budget and speed up the recovery of funds. 2. Avoid the shortage of supply and the rise in prices caused by climate and climate-derived factors affecting the production and transportation of materials. For example, in the rainy season, the open-air brick factories in the low-lying countries of Southeast Asia have a 6-month shutdown period; the cement plants also stop production accordingly. And water transportation has entered the golden season, which is suitable for the preparation of sand and gravel materials.
4. Take advantage of the globalized international market to fight against the monopoly supply of certain major materials by large suppliers with special status
At present, most of our overseas projects are concentrated in relatively small underdeveloped countries, and the shortage of resources is their common feature. Large companies with government backgrounds and large international consortiums control the main local materials in short supply, such as: steel, asphalt, oil, etc., forming a monopoly of supply, which seriously affects project execution and cost control. Taking advantage of the globalized international market, relying on the rich resources of the motherland and the comprehensive opening-up policy, understanding and mastering the relevant knowledge of international economic and trade and international market information, can effectively counter the monopoly supply of certain major materials by large suppliers with special status. The steel for the Myanmar shipyard project is imported from China; the asphalt for the Bangladesh highway project is imported from India, and the anchors and high-strength steel strands are imported from China are relatively successful examples.
Therefore, making full use of the procurement environment in project material management is the fundamental way to effectively reduce material costs.