News For This Month: Companies
Procurement is one of the key things that is required in any type of a business organisations. To any person who might be confusing between procurement and purchasing of goods and services, these are two different departments with different operations. Before discussing more about the procurement planning process, it is important to understand what procurement is and according to description, procurement is the overall process of acquiring goods, civil works and services.
In the procurement process, the procurement officer must identify all the necessary needs that the customers have, select and solstice the right sources, prepare and award the contracts to the right people with qualifications to supply the needed products. For an organisation to have the best procurement services, the procurement manager or officer must be capable of coming up with the right plans for the procurement process. Proper and authentic procurement processes can be so much advantageous to an organisation. The following are some of the top reasons or ways through which you can benefit from proper procurement operations in your firm. One good thing with legit or authentic procurement processes is increased customer and supplier happiness and hence more satisfaction.
Procurement processes help to ensure that the performance of the suppliers is greatly boosted and thus increasing their potential to supply quality goods which when supplied to the customers, the customers get satisfied and hence improving the general growth of the business. The other reason why procurement processes are very important is because they give the buyers an opportunity to select the best suppliers that will supply them with quality goods. Another reason why proper procurement processes are very vital is because they help to ensure that quality goods are supplied at low costs.,
There is generally a proper procurement procedure that must be clearly followed so as to have proper supply of the right goods and services. The following is a simple discussion about the right procurement procedure.
Recognizing the specific goods needed by the customers is the first step in procuring goods and services. The second step in procurement is coming up with specifications, brand names and other things that will describe the characteristics of the products to be procured. It is then important to select the right suppliers to who can supply the needed goods.
However, in order to be able to select the best suppliers, you have to first invite quotations from the suppliers and analyse them properly so as to get those that have the capacity to supply. Awarding the selected suppliers with contracts is the other great step that comes after selection of the suppliers in the procurement process. The other step in procurement is delivery of goods by the supplier. The last procurement procedure is making the payments to the supplier and documentations.
