The procurement lifecycle encompasses all stages of the purchasing process, ensuring that organizations acquire the goods and services they need efficiently and effectively.
Stages of the Procurement Lifecycle:
- Needs Assessment: Identifying and defining what products or services are required to meet organizational goals.
- Supplier Identification: Researching potential suppliers through market analysis, recommendations, and existing relationships.
- Supplier Evaluation: Assessing suppliers based on criteria such as quality, pricing, reliability, and financial stability.
- Order Placement: Issuing purchase orders (POs) to selected suppliers, outlining the terms and conditions of the purchase.
- Receipt and Inspection: Ensuring that received goods meet specified requirements through quality control processes.
- Payment: Processing supplier invoices promptly and according to the terms established in the contract.
- Contract Closure: Finalizing the procurement process by closing out contracts and ensuring all obligations are met.
