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What is Procurement?Steps of Procurement?

Procurement is the process of obtaining raw materials/products, services for business. Procurement is mostly found in businesses as they need resources for their products and many businesses are capable of performing them at a very large scale.

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What is Procurement?Steps of Procurement?

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  1. What is Procurement?Steps of Procurement? Procurement: Procurement is the process of obtaining raw materials/products, services for business. Procurement is mostly found in businesses as they need resources for their products and many businesses are capable of performing them at a very large scale. An effective procurement strategy can do many things for instance it can save company money by negotiating favourable terms and pricing. It can also ensure supplier quality and time. Steps involved in procurement are: * vendor selection * payment negotiation * strategic vetting * final selection * contract negotiation * final purchase Some of the best practices that can be followed are: * Have a proper hierarchy for decision making and preferably a high- level team for major decisions. * Use the feedback of all stakeholders in procurement to keep refining and improving the process. * Digitize wisely a software solution that is chosen for procurement management should serve to make the entire process quicker and more efficient. * Give attention and importance to relationship management with suppliers. * Pay attention to the human resources chosen to implement supply chain strategies * The cheapest supplier is not always the best. Price is not the only decision making factor in choosing suppliers. Make decisions based on the TOC or the total cost of ownership.

  2. * Manage contracts properly. When disputes arise it is the contract that enables a favorable solution. * Efficient inventory management is the key to managing costs. * Review and refine the procurement process continually. * Have the highest standards of ethics and social responsibility.

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