The infographic “10 Essential Steps in the Procurement Cycle” expresses a clear visual idea of the key steps that drive a perfect procurement. From searching business needs and defining necessary specifications to sourcing suppliers, negotiating contracts, and ensuring quality assurance, all the steps are geared toward efficiency and lifetime value. This cycle drives purchasing and strengthens supplier relationships, reduces risks, and supports strategic organizational business growth.
1. Identify Needs
Understand the requirements of great business for goods or services.
2. Define Specifications
Detail quality, quantity, and acceptance needs.
3. Conduct Market Research
Check the details of suppliers, pricing, and industry trends.
4. Supplier Sourcing
Search find, and shortlist potential suppliers.
5. Evaluate & Select Suppliers
To measure or evaluate based on cost, quality, reliability, and risk.
6. Negotiate Contracts
Discussed and confirmed on terms, pricing, delivery, and compliance.
7. Create Purchase Orders
Running the ball of the procurement with approved orders.
8. Manage Delivery & Logistics
Confirm timely and accurate delivery of goods/services.
9. Inspect & Verify Quality
Check compliance with specifications and solve the issues.
10. Review & Optimize
Examine supplier performance and improve processes.
Author’s Bio:
Pankaj Tuteja
Head of Operations – India
https://www.dragonsourcing.com