procurement
Procurement is the process of finding, acquiring, and buying goods, services, or works from an external source, often via a tendering or competitive bidding process. It's a key part of supply chain management and involves several steps designed to ensure that an organization gets what it needs at the best possible cost and quality.
Key Aspects of Procurement:
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Identifying needs – Understanding what goods or services are required.
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Supplier research and selection – Finding and evaluating potential suppliers.
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Negotiating contracts – Agreeing on terms, prices, and conditions.
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Purchasing – Placing orders and managing delivery.
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Receiving and inspecting goods/services – Ensuring they meet required standards.
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Payment processing – Paying suppliers according to the agreed terms.
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Record keeping – Documenting the process for compliance and future reference.
Types of Procurement:
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Direct procurement – Buying raw materials or goods that go directly into a company’s products.
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Indirect procurement – Purchasing goods and services that support operations (e.g., office supplies, maintenance services).
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Services procurement – Acquiring people-based services, such as consulting or IT support.