Here stages that starts procurement process:

Step 1: Need Recognition – This is a seemingly obvious step, but one that needs to be mentioned. A business owner (or procurement department) must recognize a product is needed in order to purchase it. That product can be either a brand new item, or one that is being re-ordered.

Step 2: Specific Need – Does your industry have specific requirements for various products. If that is the case in your industry, be sure you are up-to-date on those requirements and order accordingly.

Step 3: Source/Examine Supplier Options – Every business needs to determine where to get their goods. Some companies have an approved vendor’s list (this is a recommended practice) while others are still trying to determine who the best suppliers are. Once a supplier is chosen, companies should stick with that relationship and try to establish preferred pricing.

Step 4: Price and Terms – Once a supplier is chosen, companies should stick with that relationship and try to establish preferred pricing and specific terms (i.e. delivery).

Strategic sourcing solution and specified needs helps you to get fit suppliers. You have a suppliers database after were signed contracts and specifications.

This contract and specifications are the rules guarantee companies needs will be procured in a right order/quantity/quality.

If you make procurement within the contract and specifications you follow the procurement policy.

Procure smarter

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