Procurement Process

The procurement procedure and procurement consulting is the attainment of goods and services at the best total cost of ownership to match the needs of the purchaser in terms of quality, quantity, time and location. It includes making purchasing decisions under conditions of shortage. There are usually seven procurement steps in the procurement life cycle. These steps involve information gathering, supplier contact, background review, negotiation, fulfillment, maintenance and renewal.

Procurement consulting may be able to optimize evaluating several different procurement inputs. This form of evaluation can involve particular supply chain conditions, individual supplier conditions and may provide alternatives to address the buyer’s sourcing goals. The procurement process is usually split into two categories. These two types include direct production-related procurement and indirect non-production-related procurement. The procurement process of direct procurement involves only manufacturing settings. Direct procurement focuses in supply chain management.