The purchasing process can be adapted as needed, and some organizations may include additional steps. Here are seven essential steps that can be part of the purchasing process:
Need Identification:
The first step involves identifying the need to purchase a product or service. This may arise from demands internal or external to the organization.
- Supplier Search:
After identifying the need, the organization researches potential suppliers. This includes evaluating reputation, quality, price and other relevant criteria.
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Supplier Assessment and Selection:
Based on the research, the organization evaluates the available suppliers and selects those that best meet the requirements.
- Negotiation of Terms and Conditions:
At this stage, the parties involved negotiate the terms and conditions of the contract, including price, delivery times, payment terms and other important details.
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Purchase Order Issuance:
Once terms are agreed, the organization issues a purchase order formalizing the transaction. This serves as a legal document setting out the agreed details.
- Receipt and Inspection of Products/Services:
After delivery, the organization receives the ordered products or services and carries out inspections to ensure compliance with the agreed terms.
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Payment and Performance Assessment:
The last step involves paying the supplier according to the agreed terms. Additionally, the organization can evaluate the supplier's performance for future purchasing decisions.
To implement this procedure efficiently and quickly, it is crucial to have specific purchasing management systems, such as GOEVO SCM, which plays a fundamental role in automating and optimizing several stages of the process, from request to payment. This results in more precise control over acquisitions, saving time and minimizing errors. Incorporating GOEVO SCM into your company's purchasing cycle provides greater transparency, speed and effectiveness, essential elements for the success and financial stability of any company.
