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Ever wondered what's involved in a purchasing process?

Purchasing is the formal process of buying goods and services. The purchasing process can vary from one organization to another, but there are some common key elements.
The process usually starts with a demand or requirements – this could be for a physical part (inventory) or a service. A requisition is generated, which details the requirements (in some cases providing a requirements specification) which actions the procurement department. A request for proposal (RFP) or request for quotation (RFQ) is then raised. Suppliers send their quotations in response to the RFQ, and a review is undertaken where the best offer (typically based on price, availability and quality) is given the purchase order.
Purchase orders (PO) can be of various types, including:
standard - a one time buy
planned - an agreement on a specific item at an approximate date
blanket - an agreement on specific terms and conditions: date and quantity and amount are not specified.
Purchase orders are normally accompanied by terms and conditions which form the contractual agreement of the transaction. The supplier then delivers the products or service and the customer records the delivery (in some cases this goes through a goods inspection process). An invoice is sent by the supplier which is cross-checked with the purchase order and documents specifying which goods have been received. The payment is then made and transferred to the supplier.

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"Procurement is the investigative layer that takes the workload off the buyer when making a purchasing decision. In most cases, the buyer doesn’t have the perfect amount of information to make the appropriate decision for the specific product or service that is being evaluated. This often happens inside large organizations and creates a need for a specialized role that goes beyond procurement’s perceived job; use the collective buying power of the organization to get the lowest possible price. Procurement can satisfy this need by collecting data and understanding issues like the cost-benefit analysis and risk profile of the organization they are looking to partner with, but as access to previously held private information becomes more readily available and public on the internet, their role could become less relevant." James Gross, Co-founder, Percolate

Comprendre ce que c'est l'approvisionnement:

L'approvisionnement consiste, pour une entreprise, à acheter les produits et les services qui sont nécessaires à son fonctionnement. L'approvisionnement doit être régulier (gestion des stocks) et maîtriser les prix (politique d'achats). La fonction d'approvisionnement est un élément clé de la compétitivité d'une entreprise par les incidences qu'elle peut avoir sur ses coûts de production.
Le processus comprend la préparation et le traitement d'une demande ainsi que la réception finale et l'approbation du paiement. Cela implique souvent
(1) la planification d'achat,
(2) la détermination des normes,
(3) le développement des spécifications,
(4) la recherche et sélection de fournisseurs,
(5) l'analyse de valeur,
(6) le financement,
(7) la négociation de prix,
(8) l'achat en lui-même,
(9) l'administration des contrats d'approvisionnement,
(10) le contrôle d'inventaire,
(11) les cessions et autres fonctions connexes.

Understanding what PROCUREMENT is:

The act of obtaining or buying goods and services. The process includes preparation and processing of a demand as well as the end receipt and approval of payment. It often involves
(1) purchase planning,
(2) standards determination,
(3) specifications development,
(4) supplier research and selection,
(5) value analysis,
(6) financing,
(7) price negotiation,
(8) making the purchase,
(9) supply contract administration,
(10) inventory control and stores, and
(11) disposals and other related functions.

Read more: http://www.businessdictionary.com/definition/procurement.html

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