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Procurement Support is the process of selecting vendors, creating on payment terms, vetting the vendor, and the actual process of purchasing the product or service. This process of acquiring goods or services is a vital part of any organization’s activities. The procurement process has to reflect company goals and strategy. It is the strategy of sourcing the proper quantity and quality of products or services from an adequate vendor at the correct time at a reasonable price.
The Procurement Support starts with identifying the requirement. The time for the process depends on the demand. Typically, the following steps are a part of the procurement process:
- Recognizing the need, purchase Request & Authorization by the Department Head.
- Procurement Process: Identifying the vendors, RFQ/Tenders.
- Commercial Negotiation, Vendor Selection & Placing of Order.
- Supply of Goods/ Completion of Services, Billing by the Vendor.
- Approval of Bill by the Department and Payment to the Vendor.
In an industrial project, many products and services have to be procured during the project. The procurement package has to be discussed at the initial stage of a project and planned in line with the project timeline.
The RFQ/Bid should necessarily have all the relevant drawings and or specifications that will help the vendor quote without any ambiguity on the product or work specifications.
Managing a procurement involves understanding the procurement mechanism of the client. Some organizations have a Safety Rules, Anti-Corruption Policies, Process for invoices needs to be sent, etc. It is better to ensure that the same is incorporated in the tender avoiding unnecessary conflict during the project implementation.
The RFQ/Bid must have delivery dates, hold points, checkpoints or inspection dates depending on the product/ service.
Evaluating a Bid is a crucial step in the procurement process. The bid should be assessed for the price, any deviations mentioned, whether taxes are included or extra, etc. A check should be done on all documents as mentioned in the bid submission. It involves evaluating the vendor and the previous performances.
Procurement support is a very critical step that can make or break any industrial project.