A Procurement Management Process, or Procurement Process, is a method by which items are purchased from external suppliers. The procurement management process involves managing the ordering, receipt, review and approval of items from suppliers. A procurement process also specifies how the supplier relationships will be managed, to ensure a high level of service is received. This is a critical task in Procurement Management. In essence, the procurement process helps you "get what you have paid for".
Companies whether big or small need to implement a Procurement Process any time they want to buy items from external suppliers. By using this Procurement Management Process, you can ensure that the items provided meet your need. It also helps you manage the supplier relationship, ensuring that any issues are resolved quickly. By implementing a Procurement Process, you can ensure you get the maximum value from your supplier relationship.
Procuring goods and services from external suppliers can be a critical path for many projects. Often, the performance of the supplier will reflect on the performance of the overall project team. It's therefore crucial that you manage your suppliers performance carefully, to ensure that they produce deliverables which meet your expectations.
This procurement management solution will also help you to:
- Identify the goods and services to procure
- Complete Purchase Orders and issue to suppliers
- Agree on delivery timeframes and methods
- Receive goods and services from suppliers
- Review and accept the items procured
- Approve supplier payments