Scribd
Upload
83 views3 pages

Procurement Process

This document outlines the standard procurement process for efficient and compliant acquisition of goods and services within the organization. It details the steps involved, from identifying needs to invoice processing and record keeping, ensuring transparency and fairness in supplier selection. The process is applicable to all departments and stakeholders involved in procurement activities.

Uploaded by

rahul245chn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
83 views3 pages

Procurement Process

This document outlines the standard procurement process for efficient and compliant acquisition of goods and services within the organization. It details the steps involved, from identifying needs to invoice processing and record keeping, ensuring transparency and fairness in supplier selection. The process is applicable to all departments and stakeholders involved in procurement activities.

Uploaded by

rahul245chn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

PROCUREMENT PROCESS DOCUMENT

1. Purpose:

This document outlines the standard procurement process to ensure


efficient, transparent, and compliant acquisition of goods and services within
the organization.

2. Scope:

Applicable to all departments and stakeholders involved in procurement


activities across the organization.

3. Objectives:

To procure quality goods and services at the best value.

To maintain transparency and fairness in supplier selection.

To ensure compliance with internal policies and external regulations.

4. Procurement Process Steps:

Step 1: Identification of Needs

Initiating department identifies the requirement.

Prepare a detailed specification or scope of work.

Confirm budget availability and obtain necessary internal approvals.

Step 2: Requisition Submission


Create and submit a Purchase Requisition (PR) in the procurement system.

Include product/service description, quantity, estimated cost, delivery date,


and justification.

Step 3: Requisition Review and Approval

Procurement/Finance team reviews the PR.

Approvals obtained based on delegated authority thresholds.

Step 4: Supplier Identification & Selection

Use existing vendors (preferred list) or initiate new supplier search.

Request for Quotation (RFQ), Proposal (RFP), or Tender (RFT) issued,


depending on value and complexity.

Evaluate bids based on price, quality, lead time, and vendor capability.

Select supplier and document the decision-making process.

Step 5: Purchase Order (PO) Creation

Create a formal Purchase Order referencing the selected quotation/proposal.

PO reviewed and approved by authorized personnel.

Send PO to the selected vendor for acknowledgment.


Step 6: Order Fulfillment

Supplier delivers goods/services as per PO terms.

Receiving department inspects and verifies delivery (quantity and quality).

Discrepancies, if any, reported and resolved.

Step 7: Invoice Processing & Payment

Supplier submits invoice referencing PO and delivery note.

Three-way match conducted: PO, invoice, and goods receipt.

Upon successful match, Finance processes payment as per agreed terms.

Step 8: Record Keeping and Audit

All procurement documents (PR, PO, quotations, approvals, invoices) stored


in the system.

Maintain audit trail for compliance and reporting.

5. Roles & Responsibilities:

Role Responsibilities

Requisitioner Identifies need, prepares and submits PR

You might also like