Illustrating Procurement Stages

Procurement is the process of obtaining necessary goods and services for an organization. It involves a series of steps that begins with identifying the need for the goods or services and ends with the delivery of goods or completion of the service. The procurement life cycle involves the following stages:

Creating a Purchase Request

A Purchase Request is an official approach to seek the organization's approval on a purchase proposal.

Requesting for Quotation (RFQ)

After receiving the purchase request, you can send RFQ (Request for Quotation) to potential vendors who

Processing Vendor Quotes

Vendor quotes refer to the pricing along with offers/discounts provided by vendors in response to the published

Generating Purchase Orders

After the vendor selection process, you can generate a Purchase Order (PO) and send it to the vendor

Associating Receivables

After the purchase order generation, the details reflect in the Receivables section. Once the organization has received

Defining Terms and Conditions

Defining terms and conditions refers to creating legal agreements that set out the rights and obligations of the parties