Essential Steps in Procurement Process

Every business has certain tasks that they need to do in order to keep their company operating at its best. One of the things they will likely due is participate in procurement procedures and processes. When using this process they will include selecting suppliers, requesting information, submitting tender, make evaluations and also contract awards and inspection. With all of these tasks a company will be sure to get more out of their daily operations. Since companies need to do tasks to operate at their best, procurement procedures and processes will help them accomplish this objective.


Selecting Suppliers

One of the first things that a company does when using procurement procedures and processes is to select suppliers. This is simply the process of finding vendors who sell various things such as office supplies, materials and inventory. While there are a number of vendors who supply a company with these things, a business will want to carefully evaluate each one to make sure that they get the best one for their needs. They will also want to get the best supplier who provides the best materials and inventory as well. By selecting suppliers, a company will therefore have one way of ensuring that they keep their operations at their best.

The next thing a company will do during the procurement process is to request information. This is simply the process of looking for other suppliers to get inventory and supplies. During this process they will ask for a bid which will allow the company to find the best price offered by the alternative suppliers. Companies will then use tender returns during the procurement process. In this situation the suppliers who placed bids will be asked to return tenders to an officer by a certain date. The supplier will include information about the products they are offering as well as the costs associate with them. They will also be asked to provide information pertaining to their finances as well.

Tendering and Contract Award

After the first few steps the next parts of this process include tender evaluation, contract award and also contract conclusion. The next part of the process is tender evaluation which is when the tenders are returned and the buying company needs to make a contract decision within a specific time period.

With a contract award, the suppliers will be notified of whether or not they won the bid. If they were successful then they will likely get a contract. In the final phase known as contract conclusion, the supply will be delivered and the buyer will check to see if the quality and quantity is sufficient to their needs.