The term procurement is certainly familiar in the world of work. Broadly speaking, procurement is the overall process of procuring company goods and services. Procurement processes are seen as very important by all modern companies because these processes are crucial for their long-term survival.
Who runs the procurement process?
Modern businesses are increasingly adopting an enterprise procurement system to streamline these responsibilities and automate key purchasing workflows. The procurement process is carried out by procurement staff in a company/organization that has the following responsibilities:
Planning the purchase or procurement of goods and services
When planning the purchase or procurement of goods and services, the procurement staff must make specifications of the goods and services needed by the company. In addition, the procurement staff must also ensure that the goods and services to be ordered are of quality in accordance with company standards.
Sourcing supplier or vendor
After preparing a purchase or procurement plan, the procurement staff needs to find a supplier or vendor that can meet the company’s needs. You can add more than one supplier or vendor to the list of options. Later, the availability of goods or services, quality, and prices offered will be the benchmark in choosing a vendor.
Tender and negotiation process
In this stage, the procurement staff submits tender offers and negotiates prices to suppliers or vendors. The goal is to get the best prices and suppliers.
Preparing for the cooperation process
After finding a suitable supplier or vendor, the next task for the procurement staff is to prepare a collaborative process. Among them, preparing the required documents.
Controlling the availability of goods and services
After purchasing goods and services, procurement staff needs to carry out continuous stock and quality control. This is intended so that there is no shortage or decrease in the quality of goods and services that can affect the company’s productivity. However, there are circumstances where spot purchasing is necessary so the procurement team should be able to manage.
Vendor monitoring and performance
The duties of the procurement staff are not only related to goods and services. However, it also conducts monitoring and assessment of vendor performance. This is useful for decisions to continue cooperation in the future.
Steps in the procurement process
The following are important steps that need to be implemented in the procurement process:
Requirements Determination. This is the initial stage of the procurement process. After determining what goods and services each department needs, the company will create a requisition. The list of requests is given to the relevant section or department for further procedures to be carried out.
Source Determination. After obtaining a list of requirements from all departments, the procurement staff looks for suppliers or vendors who can fulfill these requests. At this stage, the procurement staff needs to prepare an inquiry document addressed to the supplier or vendor.
Vendor Selection. From the list of vendors compiled by the procurement staff, one vendor was selected according to company criteria. The vendor selection is based on consideration of the availability of goods and services according to the company’s needs, quality, and price offered.
Order Processing and Purchase Order Monitoring. The next stage is to create a purchase order document that is given to the vendor. At this stage, the procurement staff is also tasked with monitoring the purchasing process so that it runs smoothly and directed.
Rechecking. The goods and services that have been processed by the vendor are then rechecked and sent to the ordering company.
Payments. After the goods are received, the finance department of the ordering company or the procurement actor then makes payments according to the agreement that has been agreed by both parties at the beginning of the cooperation.
What if an item is damaged or missing? In this case, the return and replacement of goods are carried out according to the agreement stated in the cooperation document. If all processes have gone according to the flow to the end, then the procurement process has been completed.
