A DMRE Procurement Spend Plan is a crucial document for any fuel business. A DMRE Procurement Spend Plan is one of the necessary documents that form a part of a compliant application to the Department of Mineral Resources and Energy (DMRE), be it for a retail or wholesale license. The procurement spend plan helps to identify the necessary resources and track progress, whilst avoiding overspending and saving money. Procurement spend is all expenditure on the goods and services to help deliver business operations. It does not however include costs which cannot be influenced by the procurement team such as; employee costs, company taxes, or levies. The procurement plan essentially forecasts the future needs of the business and allocates resources to meet those needs.
Developing a comprehensive DMRE procurement spend plan increases the efficiency, effectiveness and transparency of the procurement process. It helps fuel businesses choose the best products, services, and supplies to meet their needs, whilst reducing waste and costs. Creating a procurement spend plan helps the business to avoid surprises and last-minute considerations. The plan helps business owners decide what to purchase, when to purchase it, and what sources to purchase from. The plan also lets business owners determine if their expectations and requirements are realistic, as well as if the plan can be completed in the proposed project timeline.
Procurement Spend Plans ensure that:
- Money is spent solely on the items or products that it is stipulated for;
- The company knows what is required to be purchased in future; and that
- The company minimises non-contracted and unnecessary spending.
DMRE Procurement Spend Plan Components
A basic Procurement Spend Plan includes:
- The companies you intend on purchasing from;
- Their contact details;
- The amount that will be spent on the items/products; and
- A description of the said items/products.
To ensure long-term success for your fuel business, implementing a sound procurement spend plan should be high priority. Procurement spend plans will better equip you when making decisions because it provides a clear understanding of the resources required and your financial allocations. This allows for more strategic decision-making capabilities regarding the overall budget.
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