If you're new to the procurement process, or you might not be so sure about it, don't worry—it might sound complicated, but we're here to make it easy for you to understand. Let’s break it down step by step so you can see how it all works. 😊
First, the business figures out what items or services are needed. It’s like making a detailed shopping list and consulting all departments to ensure everyone’s needs are covered.
An employee submits a purchase request (PR) with details like price, quantity, and timeframe. This notifies the company about the need.
The purchasing department reviews and approves the PR, allowing the team to proceed with vendor selection.
3.1 Assess and Select Vendors: Find the best vendor by sending requests for quotes (RFQs) and comparing responses based on cost, reputation, speed, quality, and reliability.
3.2 Price and Terms Comparison: Get at least three quotes, compare them carefully, negotiate if possible, and get the final terms in writing.
The purchasing team creates a purchase order (PO) based on the chosen quote and sends it to executives for approval.
Executives review and approve the PO, and then it’s sent back to the purchasing team.
With the approved PO, the team places the order with the vendor.
When the goods arrive, they are carefully inspected to ensure they match the order and meet quality standards.
Finally, all documents related to the purchase are recorded for future reference, audits, and tax calculations.
Procurement processes are crucial for business operations. Any inefficiencies can impact the organization's success. House of Dev Technology is committed to enhancing your understanding of procurement processes.🫡
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