Procurement Life Cycle
The procurement life cycle is the process that a company uses to purchase goods or services. The cycle begins with the identification of a need and ends with the receipt of the goods or services. In between, there are a number of steps that must be taken in order to ensure that the procurement is conducted in a fair, transparent, and efficient manner.
The first step in the procurement life cycle is the identification of a need. This can be done through market research, internal analysis, or customer feedback. Once a need has been identified, the next step is to develop specifications for the goods or services required. These specifications will be used to solicit bids from potential suppliers.
After bids have been received, they must be evaluated in order to select the best supplier. There are many factors that go into this decision, including price, quality, delivery time, and terms of service. Once a supplier has been selected, a contract must be negotiated and signed. This contract will spell out the terms of the agreement between the buyer and seller.
Once the contract is in place, it is time to place an order for the goods or services required. The supplier will then deliver the goods or services according to the terms of the contract. Finally, once the buyer has received and accepted the goods or services, they will make payment to the supplier according to the terms of their contract.
