Notesale: Turn your study into money

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WHAT IS PROCUREMENT?
Procurement can be defined as the process of acquiring goods and services from a third-party
vendor through direct purchasing, competitive bidding or tendering process while ensuring
the right quality and quantity
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It is a part of the input toa company that uses the procured goods or services in the
making of their own final product
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The process is not the same for all businesses because it can vary according to
needs
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Every organization has a unique procurement process flow
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It establishes that there is a need for what is to be bought
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Step two is the determination of the specifics of the requirement
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This would include technical specifications or part numbers
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Once it is determined that a specific item or service is
to be bought, the procurement team has to then do the research to determine the various

sources that supply it
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Step four is negotiations and finalization of price and terms
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The aim is to get a minimum of at least
three quotes before making a selection
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If there is a bidding
or tendering process for the procurement, the selection of the qualifying bids will be as per
the terms and conditions set
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A purchase requisition generated within the
company will be approved by the appropriate authority
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Delivery of the purchase order is the sixth step
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The delivery of the purchase order depends on the practices of the buyer
and the seller
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It is also as per the specifications agreed upon
by both buyer and the seller
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This involves creating the timeline for the prompt delivery of the requested goods
or services after factoring in any unforeseen delays
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Receipt and inspection
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It is
the responsibility of the buyer to thoroughly inspect the supplied items if they match the
agreed-upon purchase order
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If the buyer takes delivery of the item, it is implied that they are accepted, and the payment
process starts
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If
there are any mismatches, they have to resolve them before payment
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The tenth step involves record-keeping and review
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The entire process should be
under continual review in order to improve as well as settle any disputes that might have
arisen
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Efficient procurement practices keep the flow of purchased goods and
services quick and delay-free
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This is the raw material that is required usually for a
manufacturing related business e
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, raw materials, machinery etc
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Examples are office supply,
facility management, travel, maintenance service etc
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For example, professional services, software subscriptions etc

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