Knowing About Procurement
Among the vital departments in an organisation, procurement plays a great role in the growth and smooth operations of the business at large. However, it is important understand that procurement is more of purchasing. Before discussing more about the procurement planning process, it is important to understand what procurement is and according to description, procurement is the overall process of acquiring goods, civil works and services.
Some of the functions involved in the procurement processes include identification of the customer needs, selection of sources and also their solicitation as well as preparation of contracts and awarding them to the right people. However, for procurement to be beneficial to an organisation, there has to be proper planning. There are however several ways through which procurement can be of benefit to both the organisation and the customers. The following are some of the few reasons why proper procurement planning is very important. Proper procurement services lead to supplier and customer satisfaction.
This will enable the business to have well performing suppliers and more customers therefore boosting its growth. With proper procurement procedures in your organisation, you will be able to select very potential suppliers to supply the tender to your organisation and thus giving the business quality products to offer to the clients. Through proper procurement processes, your firm can get very quality products at very less costs.
It is very important to also understand the necessary procurement procedure that your organisation must consider for the procurement of its products. Some of the key guides that can help promote the right procurement processes in an organisation are discussed below.
Recognizing the specific goods needed by the customers is the first step in procuring goods and services. The second step in procurement is coming up with specifications, brand names and other things that will describe the characteristics of the products to be procured. It is therefore vital to properly select the right people to supply the needed products to the organisation.
Not all the suppliers can have the capacity to supply the needed goods and thus important to ensure that you first invite quotations from them and also evaluate or analyse them properly in order to find those that have the right potential. After coming up with a list of potential suppliers who can supply the needed products, it is therefore necessary to award them with contracts. The other step in procurement is delivery of goods by the supplier. Lastly, payments are made to the suppliers and the necessary documents are filled and maintained for future reference by the firm.