The main process of procurement, the main 5 steps of the procurement process

What are the important processes of procurement management?

In order to keep the procurement management process fair, transparent, and efficient, a good understanding of the procurement process is key.

Every procurement management process involves multiple elements, including requirements determination, business research, value analysis, making a purchase request, review stage, purchase order conversion, contract management, monitoring and evaluation of received orders, three-way matching, payment fulfillment, and record keeping. The following are the important stages in the procurement process:

1. Make a plan

The needs identification phase of the procurement process enables businesses to develop accurate plans to procure goods and services in a timely manner and at a reasonable cost.

2. Purchase requisition

A purchase requisition is a procurement requirement made by an internal user customer who seeks the help of the procurement team to meet the existing demand. It contains the key information needed to source the right goods, services, or works.

3. List potential quotients and analyze them

Once the requisition is approved and the purchase order is generated, the procurement team will develop an individual procurement plan and outline the appropriate bidding process. Develop a list of vendors that may offer goods and services. Use a basic search or a more formal measure in the process.

The goal of this step is to evaluate potential quotients. Pricing, quality of service, reputation and recognition in the industry, warranty and guarantee terms, and customer service are some of the measures evaluated. After the evaluation, the agreement will be awarded to the ** vendor that provides the most value and the best market pricing.

4. Evaluation and contracting

Once the bidding process is officially closed, the procurement team will review and evaluate the vendor with the evaluation committee to determine which vendor is best suited to meet the existing demand. Through detailed contract analysis and negotiation, more options for reducing costs, including dynamic discounts, can be discovered.

5. Order management and invoice approval

** Merchant delivers the promised goods and services within the specified time. Upon receipt of the goods, the purchaser inspects the order and notifies the merchant of any problems with the items received.

In this step, the purchase order, packing slip (delivered with the order), and the merchant invoice are aligned and reconciled to identify discrepancies and ensure that the transaction is accurate. Discrepancies should be addressed as soon as they are identified.

How to streamline the procurement process with the help of system software

A reliable procurement management software can streamline the cumbersome procurement process and maintain transparency. A streamlined procurement process provides greater control over every stage of the procurement lifecycle.

8Manage SRM Procurement Management Software is an end-to-end one-stop procurement management solution for businesses of all sizes that helps businesses better understand their spending, improve contract compliance, get better** and reduce unusual spending.

The procurement process consists of five main steps, which are as follows:

1. Specifications. This step involves the procurement department communicating with the project manager to develop and approve a list of procurement items required for the implementation of the project. The department must specify the approved items to the external vendor.

2. Select. This step of the project procurement process requires the department to identify potential contractors who can procure the necessary items according to specifications. To do this, the department needs to set up criteria for vendor selection, which may include measures such as delivery, quality of service, cost, and part performance.

3. Signing. The department must communicate with the merchant about the delivery date and payment terms to ensure that the ordered items are delivered "on time" within the specified project budget. All conditions should be listed in the purchase contract. In addition, the detailed delivery schedule should be negotiated with the purchaser and approved by the purchasing department.

4. Control. The success of the procurement management process depends on how well the procurement department controls the delivery and payment process. By arranging regular meetings with suppliers, tracking delivery progress, reviewing ordered items against approved product specifications, and making necessary modifications to procurement contracts, departments can control the process and ensure successful completion.

5. Measurement. The final step in the project procurement management process refers to the use of a set of performance indicators and measures to evaluate the effectiveness and success of the entire process. The project manager needs to set up such a system, and the procurement department needs to use it to measure the process.

Special meetings and workshops can be held to review KPIs, interim results of phased delivery, performance of purchasing staff, adherence to product specifications, communication with suppliers, etc. If any deviations or gaps are found, the department should notify the project manager and make the necessary changes to the procurement plan.

Procurement business is a key part of enterprise operation, which is related to the cost and profit of the enterprise, and the quality of products. Strengthening the internal control of procurement business is an important way to enhance the competitiveness of enterprises, reduce operating costs and improve enterprise efficiency. The following is the main process of procurement business that I have compiled for you, for your reference, welcome to read!

The enterprise procurement process generally has three forms: comparative selection, competitive negotiation and single procurement.

The main process of comparing and selecting procurement methods:

1. The purchaser issues procurement information (procurement announcement or procurement invitation) and procurement documents;

2. Prepare and submit response documents according to the requirements of the procurement documents;

3. The purchaser reviews the response documents of the first merchant and preliminarily determines the winning candidate.

The number of successful candidates is less than the number of suppliers who submit response documents, and the specific number depends on the procurement project);

4. The purchaser reserves the right to negotiate further with the selected candidates;

5. The purchaser determines the final selection of the first business, and issues a notice of the procurement result to all the first business that submits the response documents;

6. The purchaser signs a procurement contract with the selected supplier.

Main Procedures for Competitive Negotiations:

1. The purchaser issues procurement information (procurement announcement or procurement invitation) and procurement documents;

2. Prepare and submit preliminary response documents according to the requirements of the procurement documents;

3. The purchaser conducts one or more rounds of negotiations with all the first-class merchants who submit the response documents according to the preliminary response documents, and the first-class businessmen conduct one or more rounds of responses according to the requirements of the purchaser;

4. The procurement will be reviewed according to the last round of response of the first businessman, and the first transaction will be determined;

5. The purchaser will issue a notice of the procurement result to all the first-class merchants who submit the response documents;

6. The purchaser signs a procurement contract with the contractor.

1.Search, data collection and development of new products and new materials.

2.The evaluation and certification of the quality system status (capacity, equipment, delivery, technology, quality, etc.) of the new first-class business to ensure the quality of the first business.

3.Price comparison and negotiation with the best businessmen.

4.Review the old supplier's capacity, quality, and delivery time to determine the stable supply capacity of the original supplier.

5.Timely track and grasp the changes and quality of the raw material market, in order to improve product quality and reduce procurement costs.

6.Procurement planning orchestration. Material ordering and delivery control.

7.Management training for department employees.

Summary. Make a purchase plan. Purchasing personnel should develop a detailed procurement plan according to the requisition and the company's production plan and sales plan.

**Selection and assessment of quotients. Inspect whether the first business meets their own requirements, and cooperate with those who are qualified, and choose another one if they are unqualified. Inquiry, price comparison, bargaining.

Conclusion of the contract. After inquiry, negotiation, price comparison and other processes, the buyer and seller finally sign the relevant agreement, and the contract is established.

Make a purchase plan. Purchasing personnel should develop a detailed procurement plan according to the requisition and the company's production plan and sales plan. **Selection and assessment of quotients.

Inspect whether the first business meets their own requirements, and cooperate with those who are qualified, and choose another one if they are unqualified. Inquiry, price comparison, bargaining. Conclusion of the contract.

After inquiry, negotiation, price comparison and other processes, the buyer and seller finally sign the relevant agreement, and the contract is established.

Kiss yes. These are the main 5 steps of the procurement process: 1. Develop a procurement demand plan; 2. Certified merchant; It is necessary to find the corresponding supplier and investigate whether its products meet the purchase needs in terms of quantity, quality, reputation and so on. 3. Issue a purchase order; Deliver detailed purchase plan and demand information to the supplier in the form of an order and agree on the payment method, so that the supplier can accurately produce and supply according to the customer's performance indicators.

4. Material warehousing acceptance; 5. Evaluate the procurement work. The management of purchased materials should be evaluated on a regular basis with the aim of continuously optimizing the process. 1. Formulate a procurement demand plan; 2. Certified merchant; It is necessary to find the corresponding supplier and investigate whether its products meet the purchase needs in terms of quantity, quality, reputation and so on.

3. Issue a purchase order; Deliver detailed purchase plan and demand information to the supplier in the form of an order and agree on the payment method, so that the supplier can accurately produce and supply according to the customer's performance indicators. 4. Material warehousing acceptance; 5. Evaluate the procurement work. The management of purchased materials should be evaluated on a regular basis with the aim of continuously optimizing the process.

1. Confirm the company's management policy and strategy, and formulate procurement policies.

2. Understand and analyze the internal and external environmental factors of the enterprise, including commodity dynamics (raw material status and production capacity, raw material cost changes), competitor analysis, consumer trends, internal sales data analysis, inventory status and future sales plan.

3. Draw up a procurement plan based on the results of the above two steps. The plan should include: purchase terms (payment terms, minimum delivery quantity, delivery method, return conditions, etc.), purchasing manufacturer, purchase time, product category, product amount, product quantity, etc. ）

4. Review and revise the procurement plan.

5. Execution and control of procurement work.

6. Review, analysis and know-how accumulation of procurement implementation results.

Summary. The answer has been found for you: procurement procedure refers to a series of procurement business activities from the submission and acceptance of material requisitions to the acceptance of goods and the verification of payment.

The answer has been found for you: procurement procedures refer to a series of procurement amateur activities from the submission and acceptance of material requisitions to the arrival of goods, acceptance and payment of goods.

Procurement refers to a series of procurement business activities from the submission and acceptance of material requisitions to the acceptance of goods and the verification of payment. The procurement procedure includes the following processes: the requisitioner submits an application, the department head or the minister reviews and approves, submits a large amount of money to the finance application and the purchase list, the accountant examines and inquires about the inventory, the financial director or the minister reviews and approves, and the general manager (or vice president of finance) approves the bidding (bidding) price comparison Determines the qualified supplier Signs the procurement and supply contract The purchaser receives the check and draft The actual excavation section implements the purchase and transportation to the warehouse The relevant parties will work with the material quality inspection to handle the return or claim if it is unqualified; Qualified warehousing procedures, handling and stacking.

The above is the procedure for large-scale procurement, for small or consumable purchases, generally do not need such a cumbersome Cheng Yu Chong preparation sequence, generally apply for the town to destroy the purchaser to send the application to the department head or minister for review, signature and approval, you can directly send the old purchase department to sponsor the inquiry or price comparison, procurement activities.

The basic process of procurement usually includes the following steps:

Demand confirmation: Determine the type, quantity, quality standards, etc. of specific goods or services to be purchased, and formulate a procurement plan.

**Business search: through procurement bidding, inquiry, auction and other ways to find the right business, smile and screen the business.

Inquiry and Quotation: Send an inquiry letter to the selected merchant or invite the merchant to submit to obtain information such as the merchant's quotation and delivery date.

Evaluation and comparison: Evaluate the received **, determine the final **, and at the same time carry out contract negotiations.

Order confirmation: confirm the final order and contract details, sign the contract, confirm the details, quantity and quantity, quality standards, delivery time and other details.

Delivery and acceptance: According to the delivery date agreed in the contract, the merchant will deliver the goods or services to the purchaser. The purchaser conducts acceptance to confirm whether the goods or services meet the requirements agreed in the contract.

Billing and payment: Settlement and payment are made after confirming that the goods or services meet the requirements of the contract. The payment method can be prepayment, cash on delivery, or installment payment, etc.

It is important to note that the procurement process may vary depending on factors such as the size of the organization, who is being purchased, the procurement budget, etc.