"6. Procurement Monitoring and ControlThe project procurement monitoring and control involves the administration of the procurementprocess used in the contract. The administration of the contract gives birth to another concept i.e.the performance assessment of the contractor against the requirements and objectives of theproject (Schwalbe, 2009). Ranong et al.(20090 inculcated that the objectives and the criteriaprovides a road map to the project managers in evaluating whether the project was a success ornot. Shane Co. also contained certain performance indicators against which the performance ofSAP was evaluated. These indicators were the sales of the company after the implementation ofSAP and the efficiency of the inventory management system.The poor procurement planning often leads to the failure of ERP implementation in theorganisation (Hulett, 2011). This shows congruence with the case of Shane because Shane Co.utilised unrealistic planning approach which according to Bhagwani (2009) is also one of themajor attributors in project failure. Therefore the fundamental reason behind the failure of SAPimplementation in Shane Co. was the poor planning and setting of unrealistic goals andobjectives. The cost turned out to be 4 times higher as what was actually planned. Therefore, thisresulted in reducing the sales up to the level which was became difficult for the company torecover (Kanaracus, 2009).Schwalbe (2009) acknowledged that the contract is a legal relationship between two or more thantwo parties and any failure in meeting the obligations of the contract result is subjected to thestrict actions of the federal or state government. Therefore the bankruptcy filed by Shane Co.was the result of such failure as its actual cost exceeded the estimated cost and the company wasunable to recover its cost due to the huge capital tied up in inventory (Kanaracus, 2009).However, Schwalbe (2009) asserted that there are certain tools and techniques that could help incontrolling the procurement processes of the contract. These tools are techniques would beevaluated against their importance for Shane Co. in the following table:Table 6.1: Tools and Techniques for Shane Co. Procurement ControlSchwalbe (2009) Tools and Techniques for Details of Procurement Control at Shane Co.Procurement ControlInspection and audits To analyse whether the implementation of SAPwould be feasible in such economic crunchPerformance Reporting To analyse whether the implementation of SAPhas resulted in rising sales and producingefficiencies in inventory management systemor notFormal contract change Whether Shane Co. was assured about itsmanagement capabilities or notAssessment of the information technology The integration of new informationtechnologies (SAP) in Shane Co. was not afeasible approach as the cost skyrocketed up to$36MSource: (Schwalbe, 2009)Shane should have performed inspection and audits to analyse whether the implementation ofSAP would be feasible in such economic crunch and whether the company would be able to bearany differences in the estimated cost. The performance reporting should have been carried out onthe monthly basis in order to illustrated whether the implementation of SAP has resulted in risingsales and producing efficiencies in inventory management system or not. Formal contract changecould also have been a good option if Shane Co. was assured about its management capabilities.According to Bhagwani (2009) the poor management and lack of focus of the managementresulted in the failure of SAP implementation. Therefore, the management should be responsibleenough to produce any change in the contract at the right time.Another important tool is the assessment of the information technology that is used to supportthe processes of the organisation. Kanaracus (2009) highlighted that the actual cost skyrocketedto $36 million which was too much for the company to bear in the economic crises. Thisindicated the integration of new information technologies (SAP) in Shane Co. was not a feasibleapproach. This showed the lack of proper procurement control in the Shane Co. ConclusionThe project risk and procurement management are the two important facets of the projectmanagement that include different parameters of project management such as project cost, time,schedule and scope. This report has reviewed each parameter with reference to theimplementation of SAP in Shane Co and found out that the SAP was a failure in Shane Cobecause of the wrong approached to risk management and planning. Shane Co. was unable toproperly assess the risk environment because it mainly focused on the vision but not on theupdates of policies, procedures and methods to achieve the outcomes. The lack of consistency,proper planning, management and support partially resulted in implementation failure. It can also be identified that a risk based approach to procurement planning has not really beencarried out. Therefore, the right procurement strategy should accompany the right procurementplanning in order to implement a highly advanced system. One of the important reasons behindthe failure of SAP implementation in Shane Co. was the poor planning and setting of unrealisticgoals and objectives. Thus, the report provided a great insight into the risk managementapproaches through investigating the implementation of SAP in Shane Co. which has led theauthor to proposed further recommendations in the next section."