Procurement function processes
Preparation Phase
- Specify the goods or services needed
- Determine quantity, quality, and delivery requirements
- List all individuals or groups impacted by the procurement process
- Consider their roles, interests, and influence
- Outline the approach for acquiring goods or services
- Consider factors like cost, quality, and risk management
- Gather information on pricing, trends, and supplier capabilities
- Assess market competition and availability of options
- Evaluate the skills, knowledge, and tools required internally
- Identify gaps and plan for necessary resources
- Establish the budget allocation for the procurement
- Consider costs, funding sources, and financial risks
- Set deadlines for key activities and decision points
- Break down the process into manageable stages
- Identify communication channels and frequency
- Plan for updates, progress reports, and feedback mechanisms
Sourcing Phase
- Utilize online databases and industry reports
- Attend trade shows and conferences
- Network with industry professionals
- Clearly define requirements and specifications
- Set a deadline for vendor responses
- Distribute RFP/RFQ to potential vendors
- Review proposals against criteria and requirements
- Score proposals based on predetermined evaluation factors
- Seek clarification from vendors if needed
- Compare vendor proposals and capabilities
- Consider past performance and references
- Narrow down the list based on fit with project needs
- Schedule meetings with shortlisted vendors
- Visit vendor facilities if necessary
- Ask relevant questions about their capabilities
- Discuss pricing, discounts, and payment terms
- Negotiate contract terms and conditions
- Reach mutually beneficial agreements
- Consider all aspects of vendor proposals
- Choose vendor that best meets project requirements
- Inform selected vendor of decision
- Present chosen vendor to stakeholders for approval
- Document approvals in procurement records
- Proceed to contract negotiations once approved
Negotiation Phase
- Discuss pricing and terms with vendor
- Clarify any uncertainties or discrepancies
- Propose alternative terms if needed
- Ensure all terms are agreed upon
- Obtain signatures from both parties
- Distribute final contract for review
- Submit contract for approval
- Address any feedback or concerns
- Secure final approvals
- Review supplier's performance history
- Assess supplier's capabilities
- Verify supplier's compliance with organizational standards
- Evaluate contract terms for potential improvements
- Determine key areas for negotiation
- Rank negotiation priorities
- Define negotiation goals and objectives
- Assign roles within negotiation team
- Develop communication and negotiation tactics
- Set up meeting times and locations
- Facilitate productive discussions
- Document meeting outcomes
- Ensure legal compliance
- Address any legal concerns
- Finalize contract language
- Present negotiation outcomes to stakeholders
- Address any concerns or feedback
- Secure stakeholder approval
- Provide vendor with contract details
- Confirm pricing and terms
- Clarify any questions or concerns
- Collect vendor's signature
- Distribute signed contract copies
- Ensure all relevant parties receive copies
Contract Management Phase
- Utilize key performance indicators to assess vendor performance
- Schedule regular check-ins with vendors to discuss performance
- Document any issues or concerns with vendor performance
- Maintain a detailed list of all contract deliverables
- Use project management tools to track progress on deliverables
- Communicate any delays or issues with deliverables to vendors
- Promptly address any issues or disputes with vendors
- Work towards finding a resolution that benefits both parties
- Document all communications and resolutions
- Schedule regular performance review meetings with vendors
- Provide feedback on vendor performance during reviews
- Discuss any areas for improvement or changes needed
- Review contract terms regularly for any necessary updates
- Negotiate changes with vendors when needed
- Ensure all changes are properly documented and agreed upon
- Regularly review contract requirements to ensure compliance
- Address any potential compliance issues with vendors
- Maintain records of compliance checks and actions taken
- Inform all relevant stakeholders of any contract changes
- Provide updates on contract performance as needed
- Ensure clear and timely communication with stakeholders
- Compare vendor performance to established key performance indicators
- Identify areas of strength and areas for improvement
- Use evaluation results to inform decision-making
- Analyze vendor performance for potential cost-saving opportunities
- Seek input from vendors on process improvement ideas
- Implement changes to realize cost savings or process improvements
- Review invoices for accuracy and compliance with contract terms
- Approve invoices for payment in a timely manner
- Maintain records of all approved invoices
- Document all communications, meetings, and transactions with vendors
- Store documentation in a centralized and organized system
- Ensure documentation is easily accessible for reference
Closing Phase
- Gather feedback from stakeholders
- Analyze procurement process for areas of improvement
- Ensure all paperwork is filled out accurately
- Verify all signatures and approvals are obtained
- Organize files in a secure location
- Label files for easy retrieval if needed in the future
- Review terms of contracts for completion
- Notify suppliers of contract closure
- Schedule a meeting with stakeholders
- Discuss successes and challenges of the procurement process
- Ensure all payments are processed correctly
- Verify all invoices are accounted for
- Input final procurement data into databases
- Double-check for accuracy
- Send out a formal notification to all stakeholders
- Include any relevant details or next steps
Continuous Improvement Phase
- Conduct thorough analysis of current processes
- Seek input from team members at all levels
- Utilize process mapping tools to visualize current state
- Develop detailed implementation plan
- Communicate changes clearly to all stakeholders
- Monitor progress and adjust as necessary
- Regularly review performance metrics
- Identify trends and areas for improvement
- Implement corrective actions promptly
- Schedule regular feedback sessions
- Encourage open and honest communication
- Document feedback and action items
- Collect relevant data points
- Compare performance against industry benchmarks
- Identify areas of strength and weakness
- Offer training on new tools and technologies
- Provide opportunities for skill development
- Encourage continuous learning and improvement
- Create a standardized template for lessons learned
- Review lessons learned after each project
- Implement changes based on findings
- Schedule regular meetings with suppliers
- Encourage open dialogue and idea sharing
- Explore opportunities for joint projects or innovation
Use in Manifestly