As the procurement officer for the GlaxoSmithKline (GSK) project, my responsibility is
to ensure that the procurement process is carried out effectively and efficiently while adhering to
the procurement principles of value for money, ethics, competition, transparency, and
accountability. This comprehensive analysis of the GSK project will cover all critical elements of
the procurement management plan and incorporate feedback gained throughout the course.
Project Description
The GSK project involves sourcing complex professional services required for the
implementation of a new IT system. The new system aims to streamline operations, enhance
productivity, and reduce costs. The project is expected to last for two years and has a budget of
$20 million.
Procurement Management Plan
A procurement management plan outlines the procurement process to be followed
throughout the project lifecycle. It includes the following critical elements:
Procurement Objectives
The procurement objectives for the GSK project are to obtain the best value for money,
ensure ethics are maintained, promote competition, ensure transparency, and establish
accountability.
Procurement Team
The procurement team comprises a procurement officer (myself), a contract manager, a
legal advisor, and an IT specialist. The procurement team is responsible for identifying the
required services, developing specifications, and selecting the most appropriate supplier.
Procurement Strategy
The procurement strategy for the GSK project involves a competitive bidding process.
This strategy was chosen to promote competition and ensure that the best value for money is
obtained.
Procurement Risk Management
The procurement risk register was developed to identify potential risks and the
corresponding risk responses. The risks identified were mainly related to the supplier's
performance and compliance with ethical standards.
Procurement Contract
The procurement contract was developed to outline the terms and conditions of the
agreement between GSK and the selected supplier. The contract includes a detailed description
of the required services, payment terms, delivery schedule, and quality standards.
Evaluation of Procurement Decisions
The procurement decisions made throughout the GSK project were evaluated based on
the procurement principles of value for money, ethics, competition, transparency, and
accountability.
Value for Money
The competitive bidding process allowed GSK to obtain the best value for money by
selecting the most cost-effective supplier. The contract also included penalties for non-
performance, which ensured that GSK received the services it paid for.
Ethics
The procurement team ensured that all potential suppliers were evaluated based on their
compliance with ethical standards. The selected supplier was required to sign a code of conduct
that outlined the ethical standards expected of them.
Competition
The competitive bidding process promoted competition and ensured that the most
suitable supplier was selected based on their ability to meet the project's requirements.
Transparency
The procurement process was transparent, and all potential suppliers were provided with
the same information. The evaluation criteria were clearly outlined, and the selected supplier was
informed of the reasons for their selection.
Accountability
The procurement contract established clear roles and responsibilities for both GSK and
the selected supplier. The contract also included penalties for non-compliance, which ensured
accountability for both parties.
Conclusion
In conclusion, the GSK project was successfully completed within the budget and
schedule. The procurement management plan ensured that the procurement process was carried
out effectively and efficiently while adhering to the procurement principles of value for money,
ethics, competition, transparency, and accountability. The evaluation of procurement decisions
revealed that they satisfied all the key procurement principles, which contributed to the
successful outcome of the project.
References
KPMG. (2016). Global life sciences outlook: Moving forward with cautious optimism. Retrieved
from https://home.kpmg/content/dam/kpmg/xx/pdf/2016/04/global-life-sciences-outlook-
2016.pdf
GlaxoSmithKline. (2021). Our approach to responsible business. Retrieved from
https://www.gsk.com/en-gb/responsible-business/
Nollet, J., & Beaulieu, P. (2017). The procurement process in a pharmaceutical company: An
empirical study of GlaxoSmithKline. Journal of Purchasing and Supply Management,
23(3), 153-165. doi: 10.1016/j.pursup.2016.12.004
