Among the vital departments in an organisation, procurement plays a great role in the growth and smooth operations of the business at large. To any person who might be confusing between procurement and purchasing of goods and services, these are two different departments with different operations. Procurement will involve all the activities that are meant to acquire various goods, services and civil works needed by the business or the customers.
Some of the functions involved in the procurement processes include identification of the customer needs, selection of sources and also their solicitation as well as preparation of contracts and awarding them to the right people. However, for procurement to be beneficial to an organisation, there has to be proper planning. There are however several ways through which procurement can be of benefit to both the organisation and the customers. Some of the key ways through which an organisation can benefit from the right procurement processes are discussed below. One good thing with legit or authentic procurement processes is increased customer and supplier happiness and hence more satisfaction.
Through better procurement processes, the performance of the suppliers is greatly promoted and more customers are attracted to the organisation due to provision of quality goods and services to them and thus enhancing a very high growth of the business at large. Another reason why proper procurement processes are very vital in any business is because they give the business (buyer) a great chance to compare the suppliers and be able to get the best supplier for quality products. Many are times when quality products and services are supplied at very high costs and thus being the reason why proper procurement processes are very vital in every business to minimize the costs.
There is generally a proper procurement procedure that must be clearly followed so as to have proper supply of the right goods and services. The following is a simple discussion about the right procurement procedure. Check out fed biz opps or get the best procurement planning tips.
The first key thing that one should do before procuring goods is knowing the various goods needed by the business. It is then important to describe the specific characteristics pf the goods to be procured. It is therefore vital to properly select the right people to supply the needed products to the organisation.
Not all the suppliers can have the capacity to supply the needed goods and thus important to ensure that you first invite quotations from them and also evaluate or analyse them properly in order to find those that have the right potential. The other step is awarding the contracts to the selected suppliers. The supplier then delivers the needed goods to the firm and purchasing receives and inspection reports are sent to the supplier by the buyer (firm). Lastly, payments are made to the suppliers and the necessary documents are filled and maintained for future reference by the firm. You can read more on this here: https://www.huffingtonpost.com/entry/10-tips-for-strategically-negotiating-real-estate-deals_us_5952662ce4b0326c0a8d0b58.
