Identifying Needs: The process begins with identifying the needs of the organization, whether it’s for raw materials, equipment, services, or other resources.
Supplier Identification: Once the requirements are defined, procurement professionals search for potential suppliers who can fulfill those needs.
Supplier Evaluation and Selection: This involves assessing suppliers based on various factors such as price, quality, reliability, and past performance to select the most suitable ones.
Negotiation: Negotiating terms and conditions with selected suppliers to ensure favorable pricing, delivery schedules, and other contract terms.
Contracting: Formalizing the agreement through contracts that outline the terms, conditions, and expectations of both parties.
Ordering: Placing orders with chosen suppliers and managing the procurement process from requisition to delivery.
Receipt and Inspection: Receiving the procured goods or services, inspecting them for quality and accuracy, and resolving any discrepancies.
Payment Processing: Processing invoices and making payments to suppliers in accordance with the agreed-upon terms.
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