What are the Steps Involved in the Procurement Process?

Strong procurement is a key to run any business effectively. It helps in reducing the delivery time, paying the right amount for goods and services and assists in picking the right partner to collaborate with. The process of procurement differs and depends on the size and types of business. This is where you need a qualified procurement agent in UK to ensure that maximum efficiency is achieved.

Take a look below to know the steps involved in the procurement process.

Step 1 - Identify goods and services

Procurement starts when you realise that you need to purchase services and goods through outsourcing. Identify the needs of every department and how the purchase can bring changes. By doing this, you will understand how much you are going to spend and outline those areas in which you can save money. This is the stage where you set the budget.

Step 2 - Consider a list of suppliers

Finding the right supplier is important because no one compromises on the quality of products or services. If you choose the wrong supplier, it can mar your entire business, including your reputation. The quality control subcontractors will reject the items of the products that fail to match the requirements and you may not have enough production to sell in the market. Make a list and compare the options you have.

Step 3 - Negotiation with the supplier

Now when you have picked a supplier for your company, negotiate the contract terms with them. Agree on a price that will make both of you happy. Contracts do not only cover the pricing. It involves delivery timelines, terms and conditions and more. Always keep a copy of the contract with yourself.

Read: 4 Steps to Effective Supplier Negotiations

Step 4 - Finalise the purchase

Finalise the purchase order which should consist of the description of the goods, quantity, price and approval of the workflow. Hire a procurement agent in UK to ensure that everything occurs safely.

Step 5 - Receive invoice and payment

When your supplier receives the purchase order, you will receive an invoice with pricing details. It is recommended that you make the payment or else you may have to pay extra amount for the delay. This will establish a good rapport with the supplier, and you can contact him/her in the future.

Step 6 - Delivery and audit

When the package is delivered, you should keep a record of when it is delivered. In this way, you can keep track of the supplier is maintaining timely deliveries. Double-check the items on arrival. Appoint quality control subcontractors to check the quality of the products and raise alarm if the items do not match the requirements. Take the invoice, inspect the delivery and if something goes wrong, contact the supplier.

Step 7 - Maintain a record of invoices

By keeping the record of the invoices, you will know how much you have spent each month on the products. This will help you to stick to your budget and avoid over-spending.

Now when you have established a solid procurement process, invest in the right tools and equipment for your business.