Business cycle of the procurement

Question

Accepted Answer

The business cycle of procurement involves identifying needs, sourcing suppliers, negotiating contracts, placing orders, receiving goods/services, and evaluating performance.

Identifying needs: Assessing what goods/services are required and in what quantity.
Sourcing suppliers: Researching potential suppliers, obtaining quotes, and evaluating capabilities.
Negotiating contracts: Discussing terms and conditions, pricing, and delivery schedules.
Placing orders: Creating purchase orders and sending them to chosen suppliers.
Receiving goods/services: Inspecting deliveries, verifying quality, and processing invoices.
Evaluating performance: Monitoring supplier performance, addressing issues, and seeking continuous improvement.
Example: Identifying a need for raw materials, sourcing multiple suppliers, negotiating pricing, placing orders, receiving shipments, and evaluating supplier performance.