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Procurement Process

Procurement Process

This week I want you to discuss… you, and your buying habits! Length and format: 800 words


Congratulations on the decision to buy a new car! As you’ll see, when it comes to procurement, we follow the same sets of rules as do most companies! Well, at least we should be following some rules, as so should many of the companies that currently don’t. By identifying what we need and how it fits our needs, when it’s needed, etc., we can much more easily define what we want and what we’re willing to pay.

So first, some rules: We need to know the 10 Steps of the Procurement Cycle, and they are:

1) Need for a particular good or service 2) Customer’s specification
3) Source of supply
4) Negotiation

5) Contract / Purchase Order
6) Delivery Schedule / Expediting 7) Receipt of Goods / Services
8) Inspection of Purchase
9) Invoice Approval / Payment 10) Procurement Records

Apply these steps to your purchase of the new car. Tell mewhy you’re going to purchase that car,
and how each step would apply. For example, Step 5 defines the need for a Purchase Order. To talk to

this step, tell me if, when you go to the dealer,you will bring a list of what you want on your vehicle? Maybe you’ll have some payment terms already defined because you have a pre-approved loan from your bank. Tell me what you’ll bring.

Have some fun here. Perhaps you “own” a business and the new vehicle is a truck for deliveries, maybe heavy machinery for construction. Use your imagination! Apply the procurement process to your thoughts to help ensure you’re making the right decisions.

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