A professional procurement process can be incredibly beneficial if you’re looking to streamline your supply chain. It can ensure that you pay the best price for goods or services, save time by choosing the most reputable vendors, and minimize order delays and mistakes.
Let it be known that there is no one-size-fits-all procurement process. This will vary based on your business needs. Some organizations require a formal process to suit their complex environment, which is often the case in government or education. In those industries, vendors must comply with strict guidelines. Others, like enterprise businesses, require a few key steps in an effort to manage budgets more effectively.
Each key step outlined here could be further broken down into sub-processes that could be looked at in more detail but here we will try to take a view from the helicopter of the procurement life cycle and avoid getting stuck in the weeds.
In any case, the following is representative of a typical procurement cycle from the perspective of the purchaser.