procurement

1. Pre-Procurement Planning

Define procurement objectives and goals.

Identify the need for goods or services.

Develop a budget and allocate resources.

Conduct market research to understand suppliers and pricing.

Determine procurement methods (e.g., open tender, direct purchase).

2. Specification Development

Create detailed specifications for the goods or services.

Ensure specifications align with organizational needs.

Involve stakeholders for input and approval.

Consider sustainability and compliance requirements.

3. Supplier Identification

Identify potential suppliers and vendors.

Evaluate supplier capabilities and reputation.

Create a longlist of suppliers for consideration.

Request supplier catalogs or product samples.

4. Request for Proposal (RFP) or Quotation (RFQ)

Prepare and issue RFP or RFQ documents.

Clearly outline evaluation criteria and submission guidelines.

Set a timeline for proposal submissions.

Communicate with suppliers for questions and clarifications.

5. Proposal Evaluation

Form an evaluation committee with relevant stakeholders.

Review and score submitted proposals based on criteria.

Conduct interviews or presentations with shortlisted suppliers.

Perform due diligence on suppliers' financial and operational capabilities.

6. Negotiation

Engage in negotiations with selected suppliers.

Discuss pricing, terms, and conditions.

Obtain best and final offers (BAFO) if necessary.

Document negotiated terms and agreements.

7. Contract Award

Select the final supplier based on evaluations and negotiations.

Prepare and finalize the contract documentation.

Ensure legal review and compliance with regulations.

Communicate contract award to the selected supplier.

8. Order Placement

Issue purchase orders to the selected supplier.

Confirm delivery timelines and payment terms.

Monitor order acknowledgments from the supplier.

9. Receipt and Inspection

Receive goods or services and verify against specifications.

Conduct quality inspections and document findings.

Address discrepancies or issues with the supplier immediately.

10. Payment Processing

Ensure all necessary documentation is in place (invoices, delivery notes).

Process payment according to agreed terms.

Maintain records of transactions for auditing purposes.

11. Performance Review

Evaluate supplier performance against agreed metrics.

Gather feedback from stakeholders involved in the procurement.

Identify areas for improvement and potential future procurement strategies.

12. Record Keeping and Reporting

Maintain comprehensive records of all procurement activities.

Prepare reports for management on procurement performance.

Ensure compliance with organizational policies and regulations.

13. Continuous Improvement

Review procurement processes regularly for efficiency.

Implement lessons learned and best practices.

Stay updated on market trends and changes in regulations.