Understanding Procurement Process
What Does This Page Cover?
Learn how you can create a procurement request and the various stages involved in the process for organizations.
Overview
Procurement is a constructive method used to streamline an organization’s procurement process to achieve desired results while saving money, managing time, and establishing collaborative supplier relationships.
The purpose of procurement is to ensure that required supplies are available at the right time, at an appropriate price, and meet the needs of the company.
Procurement Process
The process typically involves effectively managing the entire procurement lifecycle, encompassing tasks such as acquiring products, reviewing requests, creating purchase orders, bidding vendors, raising invoices, and managing contracts.
Please check this link to know in detail about the complete procurement process, features and its benefits in detail.
Procurement process in Zoho Creator Procurement
Procurement by Zoho Creator is a unified solution meticulously crafted to fulfill your procurement management needs seamlessly. It helps to digitize unique processes from requisition to tracking, and to manage every step of the procurement lifecycle, all under one roof.
Here is a gist of the steps involved in the process for your understanding followed by a process flowchart:
- As a first step, a Procurement Request (PR) is created by the procurer. This document includes details like Description of the item needed, quantity required, specifications if any, estimated budget and the justification for the purchase.
- The requisition is then submitted to the appropriate authority for review and approval. The approval process may involve multiple levels of management or follow specific organizational guidelines.
- After approval, a purchase order (PO) is generated by the procurement department. The PO is sent to the selected supplier/vendor.
- The procurement team receives and compares the quote from vendors and goes through vendor selection and confirmation.
- Consequently, if everything is in order, the goods are accepted, and the service is validated.
- Invoice verification and payment gets done for order fulfillment and moved for record keeping.
Process Flow Chart
Use Cases
Information Technology (IT) Procurement:
A company purchasing laptops, servers, and networking equipment for its IT infrastructure.
Procuring software licenses for office productivity, security, or specialized software tools.
Ecommerce Procurement:
An e-commerce platform sourcing products from various suppliers to sell online.
Procuring fulfillment services for warehousing and shipping.
Points to Note
- At this moment, employee requests cannot be combined into group procurement requests. They can only be processed as individual requests.
- Cost bidding is not possible in the existing version, however it is something we are actively working on to bring as a feature in the future.
- The procurement team will only be able to compare the quotes received from the vendors and select the best option. Vendor negotiation is not possible at the moment.
Related Topics
Will be added later when available.
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