The official business definition of 7 Step Procurement Process is a method used to plan and execute purchases within a business or organization. It is a process that should be implemented to ensure that all purchases are made in an effective and efficient manner. The process includes the following steps: Identification of Need; Planning; Request for Proposal; Supplier Selection; Contract Negotiation; Supplier Performance Review; and Close-Out.
The Identification of Need step is the first step and involves determining the exact item or service that is needed and identifying the key requirements that should be met. The Planning step involves preparing a budget and timeline for the purchase and deciding which procurement method is best for the situation. The Request for Proposal step is the next step and involves sending out the request for quotes or bids from potential suppliers.
The Supplier Selection step is the fourth step and involves evaluating the quotes or bids received and selecting the best supplier for the job. The Contract Negotiation step is