Explain steps in Procurement Lifecycle?
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Explain steps in Procurement Lifecycle?
Answer
Requirement and Information Gathering
- Procurement process starts with gathering information about product and its quantity. Then for required products and services, it is necessary to look for suppliers who can satisfy the requirements.
Supplier Contact
- After gathering requirements one will look for the suppliers who can fulfill the requirements. Based on that quotation request or information request can be made to suppliers or direct contact can be made with them.
Background Review
- Once the supplier is known product/service quality is checked, and any necessities for services such as installation, warranty and its maintenance are investigated. Some samples of the products can be obtained for quality examination.
Negotiation
- Some negotiations with suppliers is made regarding price, availability and delivery schedule of the products/services. After this a contract is signed that is a binding legal document between supplier and ordering party. A contract will include all necessary information like price and quantity of material, delivery date, etc.
Order fulfillment
- Ordered material will be shipped, delivered to the ordering party and supplier is paid accordingly. Training and Installation of product or services may also be included.
Consumption, Maintenance and Disposal
- As the products/service is consumed the performance of the products or services is evaluated and any follow up service support if required is analyzed.
