Following are the different steps used in Procurement Lifecycle :
Requirement and Information Gathering : The procurement process begins with gathering information about a product and its quantity first. Then for required products and services, it is necessary to look for suppliers who can satisfy the requirements.
Supplier Contact : This step comes after requirement and information gathering. After gathering requirements, one will look for the suppliers who can fulfill the requirements. Based on that, we can make a quotation request or information request to the suppliers or direct contact with them.
Background Review : Once the supplier is known, product/service quality is checked, and any necessities for services such as Installation, warranty, and maintenance are investigated. Some samples of the products can be obtained for qualifying examination.
Negotiation : Some negotiations with suppliers are made regarding the products/services' price, availability, and delivery schedule of the products/services. In this step, a contract is signed, a binding legal document between the supplier and the ordering party. A contract will include all necessary information like price and quantity of material, delivery date, etc.
Order fulfillment : Ordered material will be shipped, delivered to the ordering party, and the supplier is paid accordingly. Training and Installation of products or services may also be included.
Consumption, Maintenance, and Disposal : As the products/service is consumed, the performance of the products or services is evaluated, and any follow-up service support, if required, is analyzed.
