Five Stages Of Procurement Process Flow Chart

Description:

The image presents a PowerPoint slide that outlines the five stages of a procurement process flow chart, which is a structured approach to purchasing high-quality raw materials from suppliers. This flowchart is a step-by-step guide that includes the following stages:

1. Purchasing Request (PR):

The process begins when there is a need for raw material. A purchasing request is then sent, and upon approval by the finance department, the budget is allocated.

2. Bidding:

Once the PR is approved for bidding, quotations are received from various suppliers. Suppliers are shortlisted after evaluating their capabilities. If a supplier is deemed suitable, they are added to the supplier database; if not, a Request for Quote (RFQ) is issued.

3. Evaluation:

The received quotations are then evaluated on technical and financial criteria to ensure they meet the requirements. Suppliers that meet these criteria are considered qualified.

4. Negotiations & Contracts:

Negotiations are undertaken with the qualified suppliers. Once negotiations are finalized, a contract is issued, clearly stating the terms and conditions.

5. Purchase Order:

The final stage involves releasing a purchase order, for example, an order of 2000 units as indicated in the slide.

To the right of the flow chart, there is a box titled 'Specifications' which appears to contain the details of the raw material requirements such as weight, color, and supplier selection criteria including a minimum of 2 years of experience.

At the bottom of the slide, there are notes indicating that the slide is "100% editable" and prompts to "Adapt it to your needs and capture your audience's attention." Additionally, there are explanations for abbreviations used in the chart: 'RFQ' stands for Request for Quote and 'PR' stands for Purchase Request.

Use Cases:

The procurement process flow chart slide can be universally applied across various industries due to the general nature of procurement activities. Here’s how it can be used in different sectors:

1. Construction and Engineering:

Use: For managing procurement of building materials, equipment, or subcontractor services.

Presenter: Procurement Manager or Project Manager.

Audience: Project team, contractors, suppliers, or stakeholders involved in a construction project.

2. Manufacturing:

Use: To oversee the acquisition of raw materials, components, or machinery needed for production.

Presenter: Supply Chain Director or Operations Manager.

Audience: Supply chain staff, production team leaders, vendors, or partners.

3. Healthcare:

Use: For the purchase of medical supplies, pharmaceuticals, or medical equipment.

Presenter: Healthcare Procurement Officer or Hospital Administrator.

Audience: Hospital procurement team, medical staff, or healthcare suppliers.

4. Retail:

Use: To manage inventory procurement, vendor selection, and merchandise quality control.

Presenter: Retail Buyer or Inventory Manager.

Audience: Buying team, retail managers, or distribution partners.

5. Technology and IT:

Use: For the acquisition of IT hardware, software licenses, or third-party services.

Presenter: IT Procurement Specialist or CTO.

Audience: IT department, finance team, and third-party vendors.

6. Government and Public Sector:

Use: To govern the procurement of goods and services for public use, ensuring transparency and adherence to regulations.

Presenter: Public Procurement Official or Contracting Officer.

Audience: Oversight committees, regulatory bodies, and potential bidders or suppliers.

7. Education:

Use: For the procurement of educational materials, school equipment, or facility services.

Presenter: Procurement Officer for a school district or university.

Audience: Educational administrators, school board members, or vendors.