Procurement Process Cycle

Procurement Process Cycle

There are a number of different ways to define the procurement process cycle. One common definition is the series of steps that are followed in order to procure goods or services. This can be broken down into a few key steps, which include:

1. defining what is needed

2. identifying potential suppliers

3. negotiating terms and conditions

4. awarding the contract

5. managing the contract throughout its lifecycle

Another way to look at the procurement process cycle is through the lens of value. In this case, the focus is on ensuring that good value for money is achieved at every stage of the cycle. This means assessing both the financial and non-financial costs and benefits associated with each option before making a decision.

The procurement process cycle can also be viewed from a risk management perspective. In this case, the aim is to identify and mitigate risks throughout the process in order to protect both the buyer and supplier. This includes assessing risks at each stage of the cycle and putting in place measures to avoid or minimize them where possible.