Procurement is the process of acquiring goods and services. Procurement typically involves the identification of requirements, supplier identification, price negotiation, and delivery or acceptance of goods or services. Procurement can be categorized as tactical or strategic. Tactical procurement is the procurement of goods and services needed to meet short-term needs, such as responding to a customer’s immediate request. Strategic procurement is the procurement of goods and services needed to meet long-term goals, such as developing a product or service line.
The procurement process begins with the identification of requirements. This can be done through customer surveys, interviews, or focus groups. Once the requirement is identified, the supplier can be identified. Suppliers can be found through market research, company profiles, or directories. Once the supplier is identified, the negotiation of the price can begin. The price can be negotiated between the buyer and the supplier or between the buyer and a group of suppliers. The price can also be negotiated between the buyer and the government. The delivery or acceptance of the goods or services can then take place.
The procurement process is the process of selecting a supplier to provide a product or service. There are many steps in the procurement process, and they can involve different types of suppliers.
The procurement process starts with a request for information (RFI). A company may send an RFI to suppliers to find out what they can provide. The company may also conduct market research to find the best supplier.
After the company decides which supplier it wants to use, it begins the contract negotiation process. The company may negotiate the price, delivery dates, and other contract terms. The company may also ask the supplier to provide samples or prototypes.
After the contract is signed, the supplier must meet all the contract requirements. The supplier may have to provide a sample or prototype, meet quality standards, or meet other requirements.
If the supplier meets all the contract requirements, the company can begin to use the supplier’s services. If the supplier does not meet all the contract requirements, the company can terminate the contract and find another supplier.
