There are five categories of resources that need to be assessed:
During this stage, the purchase/SCM team will evaluate the need and determine the relative impact on available resources. The following should be reviewed at this stage in the process:
The resources available are organized to deliver objectives in the most economical, efficient, and effective way possible.
In the early stages of a project, costs are generally estimated. The three most common methods of cost estimation are:
The nearest calculation of real costs will be determined when calculating the TCO; the total cost incurred over the life cycle of a product or service. Requirements for funding must be revisited at this stage, to ensure that adequate funds will be available and realistically estimated. The organization’s ability to fund a purchase is derived from the annual budget.
