Many Procurement Managers are faced with the task of managing the Procurement Journey to meet strategic goals. Procurement is a necessary process that affects every aspect of your company, so you must be well informed on best practices when managing Procurement.
1) What is Procurement?
Procurement management aims to optimize the value chain and maximize return for stakeholders by delivering superior quality products at the lowest possible cost. It covers all aspects of sourcing goods or services from suppliers who can provide them efficiently, reliably, and consistently according to specifications.
2) Things You Need to Know About Procurement Journey
If you are new to Procurement, you must understand the different stages of Procurement. Procurement can be broken down into four main phases: Pre-Award, Award, Post-award and Contract Management. Each stage has its process, which should be followed for your company to achieve its objectives efficiently while minimizing risk. Below is a summary of each phase, along with some tips on how best to proceed through this journey successfully.
Pre-Award Phase – The pre-procurement phase involves research where buyers learn about all available options in the marketplace, so they know what is out there before making any purchases or investments. It also includes identifying supply chains and providers.
Award Phase – The Procurement Award phase involves finding suppliers who meet the company’s needs and deciding which to use. It also includes negotiating prices, terms, and conditions with chosen suppliers.
Post-Award Phase – This is when contracted services are delivered between client companies and their partners or vendors. A Procurement professional will monitor all tasks throughout this process to know what works well for each business relationship. They may also negotiate continuing service levels if necessary.
Contract Management Phase — Lastly, Procurement ensures that contracts remain effective over time by managing changes in requirements through amendments to the original contract documents while staying within the legal boundaries of your organization and its partner organizations as needed. We hope you found our blog post about Procurement Journey to be helpful.
Procurement professionals manage the procurement process from beginning to end, ensuring that quality services are delivered between clients and their partners or vendors. In addition, Procurement ensures that contracts remain effective over time by managing changes in requirements through amendments to the original contract documents while staying within the legal boundaries of your organization and its partner organizations as needed.
Procurement is a team effort — Procurement is a crucial element for every stage of the business cycle, which means they work closely with other departments such as finance, management information systems (MIS), etc. It doesn’t matter what size your company may be Procurement is an integral part of any company because they are responsible for all activities related to acquiring goods and services.
Procurement manages the negotiation process — Procurements review requests for proposals (RFPs) which identifies what suppliers must include in their proposal, then negotiates with potential vendors on price, delivery terms, support requirements, etc.
We hope this information has been useful to you.