Procurement operations, as the name suggests is the act of procuring or obtaining goods and services. The process can entail preparation, like, homework and research, and be dealing with the requirement, in addition to, handling end receipt and payment approval.
Identifying Requirement: This is a crucial stage as one needs to determine the standards, plan the purchase as per the required quantity for the right price and from the right source.
Specific Requirements: The procurement manager must be aware of the specifications that the user demands; making certain that it is the right product for the company. This is where standard specifications inside the company prove helpful.
Checking for the Right Source: The decision of choosing the right source to obtain the product or service is vital. The company may have a vendors list, if not then one has to look for a supplier using purchase orders or exploring other sources such as the information available on the internet, or magazines. The supplier should not only be able to provide the required but do it by the given time, as per cost and user specification.
Value Analysis: A company needs to evaluate all information when determining the appropriate price and terms for the requirement. Demand for a customized product or service can affect this decision.
An issue of Purchase Order: A purchase order can be defined as an official offer from a buyer to the seller. The offer will include the specifications, like quantity, color, type, and the price agreed upon.
Delivery of Purchase Order: The purchase order once sent to the supplier via email, or fax is acknowledged by the same. A copy of the purchase order is stored by both the participants for future reference.
Accelerating the Purchase: There would be a given timeframe by which the supplier needs to deliver the product or service. To avoid delays, there should be frequent follow-ups to ensure on-time delivery. Dates for payment and completion of work are two important aspects that get affected in case of delay.
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