The Procurement Cycle is an important management technique that should be followed by every large, small and mid-size organization to ensure whether their procurement process is functioning well;

case any of the company... fails to address any of these steps in their procurement process, it may cause poor

 procurement which leads to loss of money, profitability, bad reputation and negative publicity from the customers if not now it may happen in future.

The following are steps structured by the Chartered Institute of Procurement & Supply (CIPS)

Stage 1: Understanding the needs and developing a high-level specification

Stage 2: Market /Commodity and Options

Stage 3: Develop Strategy/ Plan

Stage 4: Pre procurement, Market test, and market engagement

Stage 5: Develop Documentation

Stage 6: Supplier Selection to participate in ITT/RFQ Negotiation

Stage 7: Issue ITT/RFQ

Stage 8: Bid/tender/quotation evaluation

Stage 9: Contract award and implementation

Stage 10: Warehouse, logistics, and receipt

Stage 11: Contract performance review

Stage 12: SRM and SCM and development

Stage 13: Asset Management and lessons learned

If the company follows these steps in their process effectively, it will result in cost reduction, minimal risk, increased profits, greater efficiency, and so on.

The Chartered Institute of Procurement and Supply (CIPS) is an organization that promotes best practices throughout the international supply chain and procurement profession. Fhyzics, an ASC of CIPS, UK, offers CIPS L2 through L6 certification training. For more details, please speak to our Certifications Manager at +91-900-304-9000 or email her at


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