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;
iIn 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 Certifications@Fhyzics.net.