Based on your understanding of Procurement process, what is a Procurement Management Process? And what is involved?
Please no hand writing, please make sure you give a unique answer (not copied one)
This question is from Integrated Enterprise Systems course.
A procurement management process is a standardized set of steps which helps the firm to source the materials from external suppliers. It helps the firm to:
1. Identify the goods to purchase
2. Issue purchase orders to suppliers after completing them
3. Agree with the suppliers on the time frame and method of delivery
4. Receive goods and reporting it
5. Review of items and accept based on conditions
6. Approve payments to suppliers
The steps of the procurement management process are:
1. Specification: The manager specifies the specification of the items to be procured and communicates it through appropriate channels
2. Selection: The various vendors send their proposals and one of them is selected for supply based on the quality and cost
3. Contract: Setting up of the contract between the firm and vendor.
4. Control: Carrying out the control of supply and inspection of the material supplied by the vendor.
5. Measurement: Setting up a set of KPIs and using them to assess ten performance of the vendor.
Based on your understanding of Procurement process, what is a Procurement Management Process? And what is...
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