Procurement is the term used when a company needs to obtain goods or services from a third party, such as vendors or suppliers. Procurement should be done so that the goods and sources purchased are high quality while considering costs. Material Procurement Contract on behalf of a client means any material contract for the sale or lease to the Company of goods or services necessary for the construction, operation, or maintenance of the Facilities (and, for the avoidance of doubt, not the performance of general and administrative services) that the Companies are not reasonably likely to be able to replace in the ordinary course of business on reasonably comparable terms.

While purchasing is the overarching process of obtaining the essential goods and services on behalf of an organization, procurement describes the different activities involved in the getting process. It comprises all the steps that must be followed while ordering, reviewing, obtaining, and paying for goods/services. The procurement process in an organization is always unique to its context and operations.

Regardless of this uniqueness, every procurement management process consists of 3 Ps: Process, People, and Paperwork.

3Ps of Procurement

1. Process

The process comprises the steps to be followed while ordering, reviewing, obtaining, and paying for the goods or services.

2. 2. People

These are the stakeholders, and their specific responsibility in the procurement cycle is to start or authorize every stage of the entire process. The number of stakeholders is directly proportional to the value and risk of the purchase.

3. Paperwork

This is the crucial paperwork and documentation involved in every step of the procurement process – collected and stored for reference and auditing reasons.

Steps In SIFSL’s Procurement Process

Here are the crucial steps involved in the procurement process flow:

Step 1: Needs Recognition

Step 2: Purchase Requisition

Step 3: Requisition Review

Step 4: Solicitation Process

Step 5: Evaluation and Contract

Step 6: Order Management

Step 7: Invoice Approvals and Disputes

Step 8: Record Keeping

SIFSL offers all the resources and guidance every business needs to automate end-to-end procurement process and scale it up or down to meet their needs. Want to discover more? Call us now!