What is a Procurement Management Process?
A procurement management process, also known as a procurement process, is the method a company uses to purchase items from their external suppliers. This entails managing orders, receipt, review, and approval of the items you sourced from your suppliers.
The manual processing of procurement has proven to be inefficient and costly. This is why you need a Procurement processing solution like Sage Advanced procurement which allows you to shorten your purchasing cycles, never miss another discount on products or services, and avoid transaction disputes.
Using an advanced procurement software solution gives you access to insights on how you could optimize your procurement strategy and shorten your procurement cycle. Furthermore, you will be able to measure supplier performance and have the confidence that you have the best tools available for your procurement team.
Find opportunities to enhance your procurement system and ensure you have the best service from your suppliers of goods or services. You will enjoy using this procurement software.
A typical procurement process includes
- Identifying the needs of goods and services.
- Finding suppliers.
- Requesting proposals/quotations (RFP/RFQ)
- Negotiating with suppliers.
- Agreeing terms (legally binding) with suppliers. Ironing out all the terms and conditions.
- Purchase requisition. When you fill out a purchase requisition, you are not yet purchasing anything.
- Purchase order and invoice
- Arranging and receiving products/services.
- Performing quality assurance.
- Analyzing results and margins.
Streamline your procurement process flow and enjoy the long-term advantages of investing in an efficient solution that allows you to track from the moment you obtain goods or services and every other stage of the procurement prior to that. Make life easier for your finance team.