The Procurement cycle is the cyclical process of key steps when procuring goods or services.
Having a ‘Smart Procurement’ systematic process allows your company to be strategic when procuring goods and services from external vendors.
It helps you manage supplier relationships, determine which vendor to buy from to receive the lowest cost and best quality, determine what specifications and quantities are needed, streamline the shipping and delivery time frames and methods, review and accept the items purchased, approve payments, review supplier performance against contract, and identify and resolve performance issues. In short, having an effective management process can allow firms to increase efficiencies and cut costs when purchasing from vendors.
* PPQ : Pre purchase questionnaire / * ITT : Invitation to Tender / * RFQ : Request for Quotation/ * SRM : Supplier Relationship Management/ * SC: Supply Chain / * Gateway review: Stop, Think, Check