The official business definition of Procurement Life Cycle Stages is a series of steps which are taken in order to acquire goods and services. It starts with recognizing the need for goods and services and ends with the closing of a contract. It usually involves the following stages: Need Identification, Supplier Identification, Requirement Definition, Evaluation and Selection, Contract Execution, and Contract Closeout.
Need Identification is when the need for goods or services is identified and the purchasing process is initiated. Supplier Identification is when potential suppliers are identified and contacted to provide quotations. Requirement Definition is when the requirements and specifications of the goods and services are identified and documented. Evaluation and Selection is when potential suppliers are evaluated by analyzing their quotations and selecting the most suitable one. Contract Execution is when the selected supplier is contacted and a contract is negotiated and agreed upon.