The Procurement Phase is the process of obtaining goods, services and works from an external source. It is a critical step in the supply chain process, as it involves identifying and selecting suitable suppliers, negotiating contracts and ensuring that the goods and services purchased meet the required specifications and quality standards.
During the procurement process, companies will assess the cost, quality, delivery time and other aspects of potential suppliers before selecting a partner for the transaction. The procurement phase also includes the development of the appropriate documentation outlining the terms and conditions of the procurement, such as the purchase agreement, and the evaluation and selection of the suppliers. The process also includes the monitoring and management of the procurement process and the post-transaction activities such as payment and dispute resolution.
The procurement phase is an essential part of the supply chain process, allowing companies to acquire the goods and services needed to complete the job.