What is Procurement | Procurement Methods | Procurement Process

WOLFVILLE, Nova Scotia - Oct. 20, 2020 - PRLog -- What is Procurement?
Procurement in any company is a strategic process of acquisition or purchasing of goods, works, and services from external sources or organizations by inviting them through the different procurement methods like tenders, rate contracts, and purchase orders mainly.

The need for Procurement:
The goal of public procurement is to satisfy the public interest or to give the community value for the money spent.

In any business sector, every organization and or community is always trying to improve value using different processes and strategies. In this procurement is one of the processes that every business follows. Procurement is viewed as a strategic function working to improve the organization's profitability.

Procurement can save money, time, and be the way to success for any business, most of organizations agree with this. Its savings directly impact bottom-line profits and are one of the most beneficial models for driving a company's profitability and increasing shareholder value.

Different Methods of Procurement:
Procurement methods are the processes of inviting suppliers or vendors to fulfill the organization's needs in terms of auxiliary products, services, and goods at the best possible cost.

This procurement invitation process gets done by different methods:

1. Auction

2. Acquisition

3. Rate Contract

4. Purchase Order

5. Agreement

6. Tenders

What is Procurement Cycle or Procurement Process:
The procurement cycle is a series of steps to acquire goods and services after identifying needs and specify them. This cycle is followed by every industry and every organization.

From the first step to identify the needs for payment and record maintenance this cycle has different stages. These areas follow:

1. Identify Needs

2. Specification of Need

3. Selecting Procurement Method

4. Shortlist & Select Suppliers

5. Award of Contract

6. Receive Goods/Services

7. Evaluate Performance

8. Supplier Relationship Management

9. Invoice Approvals and Payment

10. Record Maintenance

Summary:
The procurement process is the long-term strategic process for any organization. The objective of this article is to provide the information and knowledge of an effective procurement process that helps organizations to create a well-structured cycle.

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