Procurement Lifecycle Definition
The procurement lifecycle is the process that an organization follows to procure goods or services. The cycle begins with identifying a need and ends with the acquisition of the desired goods or services. In between, there are a number of steps that must be completed in order to ensure a successful procurement.
The first step in the procurement cycle is identifying a need. This can be done through various means, such as market research, customer feedback, or internal analysis. Once a need has been identified, the next step is to develop specifications for the desired goods or services. These specifications will be used to solicit bids from potential suppliers.
Once bids have been received, they must be evaluated in order to select the best option. Evaluation criteria can vary depending on the organization, but typically include factors such as price, quality, and delivery time. After a supplier has been selected, a contract must be negotiated and signed. This contract will outline the terms of the agreement between the organization and supplier.
The final step in the procurement cycle is acquiring the goods or services. This includes making payments to the supplier and taking delivery of the products or services. Once acquisition is complete, the cycle starts over again at the beginning with identifying a new need.
