- Last updated: August 2, 2017
On the face of it, the procurement process can appear to be relatively straightforward.
Buyers need services; they find suppliers who can deliver those services they pay them to deliver the services – and the transaction is over.
The reality is slightly more complicated, as the procurement process is multilayered with many moving parts. However, using an e-procurement solution such as Delta can automate a number of these processes which simplifies the process dramatically. This can be extremely beneficial to your organisation in a number of ways, including streamlining purchasing, successfully tendering and controlling spend.
Before you get started, it’s important to know the basics; here are our four steps explaining the procurement process:
1 – Identifying need
The procurement process always starts with the same component – need.
An organisation recognises the need to procure goods, products or services and prepares the business case to do so. Once this need has been recognised, the organisation then identifies exactly what their requirements are. These requirements are then written up in a Contract Notice, which is published inviting suppliers to tender.
2 – Supplier evaluation and selection
Once the Contract Notice has been published and suppliers have applied to tender, the buyer must then examine the applications and identify a long list of potential suppliers, which will ultimately end up as a shortlist of three, which the winner will come from.
There is no one way to evaluate suppliers, and buyers will select their preferred candidates based on the requirements of each individual project. However, the objective is always to reduce risk and maximise value to the buying organisation.
3 – Purchase order
As well as negotiating the best price for the goods, products or services which are to be procured, organisations must spend time reviewing the terms of the contract and making sure they are getting the best deal available.
Once these terms have been agreed with the supplier, they will be written up in a formal contract called the Purchase Order, which will outline the deliverables including price, specification and terms and conditions of the product or service as well as any additional obligations.
4 – Delivery
Once the terms have been agreed and the Purchase Order is signed, the next step is the delivery of the services or products based on the specifics which have been agreed.
Once the goods are received, the buyer will reconcile the goods with the Purchase Order before payment is made. Was the project delivered on time? Are the products or services which were delivered those that were agreed on in the Purchase Order? If there are no problems with the delivery, and the buyer is happy with the goods received, payment will be made.
To find out how Delta can help streamline your procurement process, contact us or request a free demo today.
You may also like
Using Public Procurement to Promote Innovation
Innovation is essential if you want to gain a competitive advantage in the public sector, …
The Challenges and Opportunities of Global eSourcing
The global village connects more people from around the world than ever before. In theory, …
How to Use Market Analytics to Improve Your Procurement Process
Market analytics is the process of collecting, analyzing, and interpreting data about the market in …
Request a FREE Delta demo
If you’re a public sector buyer, scheduling a FREE demonstration of the Delta eSourcing suite is as easy as ABC. Simply complete our short form, telling us your preferred date and time and one of our team will be in touch with you shortly to arrange your demo.
Request a FREE Delta demo
As an AI language model developed by You.com, I have access to a vast amount of information on various topics. I can provide insights, answer questions, and engage in discussions on a wide range of subjects. I rely on search results and snippets from reputable sources to provide accurate and up-to-date information. I do not have personal experiences or opinions, but I can help you find the information you need.
Now, let's discuss the concepts mentioned in the article "4 Steps to Enhance the Procurement Process."
Procurement Process Overview
The procurement process involves acquiring goods, products, or services for an organization. It typically consists of several steps, including identifying the need, evaluating and selecting suppliers, creating a purchase order, and ensuring delivery. The article suggests that using an e-procurement solution like Delta can automate and simplify many of these processes, leading to benefits such as streamlined purchasing, successful tendering, and better spend control.
Step 1: Identifying Need
The procurement process starts with recognizing the need to procure goods, products, or services. The organization then prepares a business case and identifies the specific requirements. These requirements are documented in a Contract Notice, which is published to invite suppliers to tender .
Step 2: Supplier Evaluation and Selection
Once the Contract Notice is published, suppliers apply to tender, and the buyer evaluates the applications. The buyer examines the applications and identifies a long list of potential suppliers, which is then narrowed down to a shortlist of three. The final supplier is selected from this shortlist based on the requirements of the project. The objective is to reduce risk and maximize value for the buying organization .
Step 3: Purchase Order
In this step, the buyer negotiates the best price for the goods, products, or services to be procured. The terms of the contract are reviewed, and once agreed upon, they are documented in a formal contract called the Purchase Order. The Purchase Order outlines the deliverables, including price, specification, terms and conditions, and any additional obligations.
Step 4: Delivery
After the terms have been agreed upon and the Purchase Order is signed, the next step is the delivery of the services or products as agreed. The buyer reconciles the goods received with the Purchase Order before making payment. If there are no issues with the delivery and the buyer is satisfied with the goods received, payment is made .
It's important to note that the information provided above is based on the content of the article you shared. If you need more specific information or have any further questions, feel free to ask!
