[et_pb_section fb_built=”1″ next_background_color=”f2f2f2″ _builder_version=”4.16″ _module_preset=”default” background_color=”rgba(237,237,237,0.82)” custom_padding=”||104px|||” bottom_divider_style=”slant” locked=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_post_title comments=”off” featured_image=”off” _builder_version=”4.16″ _module_preset=”default” title_font=”Source Sans Pro||||||||” custom_margin=”|-50px||||” global_colors_info=”{}”][\/et_pb_post_title][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/06\/imgonline-com-ua-CompressToSize-B9DNpbYS1X.jpg” alt=”procurement definition” title_text=”jacqueline-munguia-1pAwJiCD60c-unsplash-min” _builder_version=”4.17.6″ _module_preset=”default” custom_padding=”|||79px||” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ background_color=”f2f2f2″ global_colors_info=”{}”][et_pb_fullwidth_menu menu_id=”16″ submenu_direction=”downwards” fullwidth_menu=”off” _builder_version=”4.16″ global_colors_info=”{}”][\/et_pb_fullwidth_menu][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/how-to-boost-procure-to-pay-value-banner2-min.png” alt=”procure-to-pay” title_text=”how-to-boost-procure-to-pay-value_banner2-min” url=”https:\/\/sourcing-force.com\/en\/how-to-boost-your-procure-to-pay-value\/” _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” max_width=”750px” use_custom_width=”on” custom_width_px=”750px” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n
Procurement<\/strong> (or purchasing) is the process for an organization to obtain products or services from external parties (market supply) to ensure that production and business activities are smoothly carried out. <\/span> Procurement practices can be divided into two parts : Direct Spend<\/strong> and Indirect Spend<\/strong>.<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n All materials, goods and services purchased by an organization in order to achieve the production of their own product(s). For instance, raw materials, machines, softwares etc…<\/p>\n Indirect Spend<\/p>\n All materials, goods, and services purchased by an organization for their internal use, e.g consultancy services, office supplies, software, hardware etc…<\/p>\n Procurement has to be constantly seamless in order to maintain the organization’s workflow.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n The procurement process (or purchasing process) includes collecting informations, inquiries, price comparisons, negotiations, evaluations, sample selections, decisions, requisitions, orderings, coordination and communication, reminders, purchase acceptances, and payment.<\/p>\n The enterprise procurement process generally comes in three forms: comparison, competitive negotiation and selection.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n The purchaser issues invitation to tender (i.e solicit suppliers) and procurement documents;<\/p>\n Suppliers prepare and submit response documents in line with procurement requirements; (The number of candidate suppliers shortlisted is usually less than the number of response documents submitted, depending on the procurement project); [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n The supplier prepares and submits preliminary responses as required by the procurement requisition; The purchaser then awards the supplier the contract, closes the deal as per negotiated terms and conditions.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n Achieving procurement goals require a procurement strategy and action plans. Through internal customer demand analysis, external supply market, competitors, supply basis and other criteria, procurement strategy is based on benchmarking.<\/p>\n Set long-term and short-term procurement goals for materials.<\/p>\n Find appropriate supply resources through appropriate actions to meet comprehensive KPIs.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.17.6″ global_colors_info=”{}”]<\/p>\n They play a big part in finding the right suppliers, establishing a relationship with them, making sure they contribute to the competitive advantage of the organization, and ensuring contract suppliance.<\/p>\n Especially now with the improvement of the strategic position of procurement departments within organizations.<\/p>\n Procurement has gradually changed from a programmatic, simple purchase-looking to a more cross-functional, and integrated function.<\/p>\n <\/p>\n To learn more on Why your organization needs a procurement software to sustain its procurement strategy, download your free e-book here:\u00a0<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][et_pb_video src=”https:\/\/www.youtube.com\/watch?v=ptS8iC0z6OQ” _builder_version=”4.17.6″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_video][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Blog” _builder_version=”4.16″ _module_preset=”default” background_color=”#f7f7f7″ custom_padding=”5px|||||” global_module=”21831″ global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n \n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_blog fullwidth=”off” posts_number=”3″ include_categories=”all” show_author=”off” show_date=”off” show_categories=”off” show_pagination=”off” _builder_version=”4.16″ _module_preset=”default” box_shadow_style=”preset1″ global_colors_info=”{}”][\/et_pb_blog][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" All You Need To Know About ProcurementProcurement (or purchasing) is the process for an organization to obtain products or services from external parties (market supply) to ensure that production and business activities are smoothly carried out. Procurement practices can be divided into two parts : Direct Spend and Indirect Spend.Direct SpendAll materials, goods and services […]<\/p>\n","protected":false},"author":2,"featured_media":9364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[45],"tags":[],"class_list":["post-9512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procure-to-pay-en"],"yoast_head":"\nDirect Spend<\/span><\/h3>\n
Procurement Process<\/h3>\n
Comparison process and procurement methods<\/h2>\n
The purchasing officer reviews suppliers’ response documents and initially determines the best candidate suppliers to be selected.<\/p>\n
The buyer reserves the right to further negotiate with selected suppliers
The purchaser selects one supplier and notifies suppliers who did not fulfill the purchase requirements
The procurement officer draws up and signs a contract with the selected supplier.<\/p>\nProcedures for competitive procurement negotiation<\/h2>\n
The procurement officer conducts one or multiple rounds of negotiations with all suppliers and may negotiate terms and conditions;
The supplier gets the bid.<\/p>\nHow to build a procurement strategy ?<\/h2>\n
Procurement Software<\/h3>\n
Procurement softwares go a long way in fortifying procurement strategy.\u00a0<\/h4>\n
Our latest articles<\/h3>\n
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