The Procurement Consultation Process

 

Procurement is the act or process of buying goods and services. It includes preparation of demand process and end receipts with payments approvals. It is classified in different areas depending on the process involved. A typical  Procurement outsourcing process should involve the following process.

 

Identify the goods or the services that you want to procure first. Identify the need for the service or the goods to make an onset for the process. The goods or services can either be internal or external depending on the need. This can only be achieved through setting a budget indicating the cost of service or goods. This will help you to estimate the amount of money needed to go through with the procuring process.

 

Source for potential vendors and gauge their ability to produce the best quality for the needed services or goods. This is the stage where you match the budget with different quotations from vendors. Look into the different prices and quality of products putting into consideration their reputation. Build strong relations with the vendors to develop mutuality that will last for a long period.

 

Submit a purchase requisition document to the finance department to get approval. Under this include the type of goods to be purchased and the quantity. Indicate names of the vendors and their locations. Ensure to include description of the goods and state the reason why you need the service and the duration it will take. This is only for approval from respective departments but purchase is not done. After approval is done the finance department creates purchase order to make the buying. The orders can be processed electronically. Purchase orders act as legal binding documents between the vendor and the buyer. The buyer receives invoices for the purchase which includes the actual items and the amount to be paid. At this stage you may receive the order for the purchase accompanied by receipts for credibility and allow room for inquiries.

 

Finally, the actual payment is done either through cheque or cash. The purchase is recorded for audit. Book keeping Procurement process is vital to ensure the expenditure is monitored and every dime is accounted for. With the advance in the world of technology e-procurement has been developed. This is procurement which is done via software. The software help to streamline the early stages of the process making it quicker. Through the system several stages are integrated and done all at once. The purchase order can be made and approved all at one place. The system keeps track record on the details enhancing credibility. Observing procurement process controls the company's expenditure and keep track records for audits.