‘Procurement’ is the process of acquiring goods or services. The procurement process can be divided into four distinct stages: identification of needs, selection of suppliers, negotiation of contracts, and post-award management.
The first stage of the procurement process, identification of needs, involves understanding what goods or services are required and why they are needed. This stage also includes developing specifications for the desired goods or services and identifying potential sources of supply.
The second stage of the procurement process, selection of suppliers, involves evaluating potential sources of supply to determine which can best meet the needs identified in the first stage. This stage also includes selecting the supplier that will be awarded the contract.
The third stage of the procurement process, negotiation of contracts, involves negotiating terms and conditions with the selected supplier. This stage also includes finalizing the contract documents.
The fourth and final stage of the procurement process, post-award management, involves managing supplier performance after award of the contract. This stage includes ensuring that the supplier delivers according to the terms and conditions of the contract and taking action if there are problems with supplier performance.