Procurement Lifecycle Overview
The procurement process follows a structured lifecycle that begins with recognizing a need and ends with the closure of the contract or completion of the delivery. Each stage plays a critical role in ensuring the procurement is transparent, competitive, and aligned with project objectives.
From Needs to Acquisition
The process begins with identifying the project’s needs—what goods or services are required, in what quantity, and when. This is followed by planning the procurement strategy, determining whether to buy or lease, and setting selection criteria. Afterward, potential suppliers are identified, and requests for quotations or proposals are issued. Once responses are evaluated, a supplier is selected, and contract negotiations commence.
Execution and Monitoring
After contract signing, the procurement enters the execution phase, where the vendor provides the goods or services. Delivery is inspected to ensure compliance with quality and terms. Payments are processed according to agreed schedules. Finally, performance is reviewed, and the contract is formally closed once all obligations are met.
Importance of Each Stage
Each stage of this process contributes to achieving procurement goals: cost-efficiency, quality assurance, risk mitigation, and project alignment. Missing or mishandling any stage can jeopardize the success of the procurement and the project it supports.
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