Procurement is the same thing as purchasing - right?
Today’s Post is by Eli Razov, Senior Account Manager at SafeSourcing Inc.
Procurement is the same thing as purchasing – right? While similar in some ways, the two are different parts of an entire process. I would like to help draw that line that separates the two. This process begins with finding the need and ending with the solution to that need, be it a good or service. There are quite a few steps in the “procurement process”, including selecting and vetting vendors, establishing terms and conditions, vendor and client communication, and finally implementation. Below you can see our standard procurement process.
Our Procurement Process:
- Client identifies a category they would like to take to market
- Data gathered on current spend, vendors, contracts and policies
- Subject Matter – Expert is assigned and project team is formed
- Internal notice sent on expenditures under review (if needed)
- Request for current vendors and additional information is made
- All internal feedback reviewed
- New event specifications established
RFx Strategy & Setup
- Incumbents notified of policy for spend, suppliers invited to participate in the event
- Answer supplier questions, train suppliers and collect samples as required
- Event is executed – results are analyzed, possible testing, information to Client News
- Send supplier thank you and surveys
- Select vendor to enter into a new contract
- Proposed contract details sent to selected vendor
- Effective date established.
While this is a very simplified list, your company’s needs may be the determining factor of the procurement process. If you work for a big corporation, there may be more steps including Non- Disclosure Agreements, stronger qualifier questions for the intended vendors, and prolonged contract discussions. If your company is smaller, the process can often times be a lot quicker.
Check Back Tomorrow for Part II or II The Purchasing Process.
For more information on how SafeSourcing can assist you or on our “Risk Free” trial program, please contact SafeSourcing we have an entire team waiting to assist you today.
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