What Is the Procurement Process Flow?

To keep the procurement management process fair, transparent, and efficient, a good understanding of the procurement process flow is key. Although the procurement process of organizations differs from each other, the flowchart below sums up the important steps in a procurement process.

Steps involved in a Procurement Process

Every procurement management process involves several elements, including requirements determination, supplier research, value analysis, raising a purchase request, reviewal phase, conversion to purchase order, contract administration, monitoring/evaluation of received order, three-way matching, payment fulfilment, and record keeping. These are the important stages in the procurement process flow:

Procurement Process Steps

Step 0: Needs Recognition

The preliminary step in a procurement process is recognizing the need for a product. Be it a brand new order or a recurring purchase, needs are analyzed and the availability is double-checked before creating a request for purchase.

Step 1: Purchase Requisition

Typically, a procurement process starts with a purchase requisition. The requester sends a request for procurement (paper form, electronic, or phone) to the purchasing department.


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