Procurement Processes
- 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.