Procurement management process

You create, log, and track contracts, purchase orders, and other commitments in the procurement management process. You can log and track payments, change orders, ship notifications, invoices, and receipts.

The following steps show a typical procurement process:
  1. A requirement is identified and a request is submitted to the purchasing department. The assigned purchasing officer or other authorized business representative selects the best procurement method.
  2. The inventory manager organizes and categorizes the required products and services that the organization wants to procure.
  3. If blanket purchase orders or service agreements exist with the vendor, and products or services were negotiated, then the purchasing agent can issue a purchase order for the existing contract. If no contracts exist for the requested material or service, then a request for quotation is sent to the manufacturers or vendors. The purchasing department or the requester can initiate a bidding process.
  4. The vendors or manufacturers respond to the bid or request for quotation.
  5. The purchasing officer analyzes the vendor response and awards the contract or purchase order. Contracts and purchase orders can be generated from the original bid, which eliminates redundant data entry and ensures accuracy.
  6. The purchasing officer purchases the products or services. The purchase can be completed by associating the product records with a purchase order.
  7. The purchasing officer pays the vendor for the products or services by using invoices and payment releases.