Procurement Procedure

Procurement Procedure

Standard procurement procedure steps have been elaborated below, this is procedure for purchases made at request of user. Procedure for annual purchases & regular inventory purchases is bit different.

1.    User Identify Requirement

In first place user of the inventory items will prepare a request (requisition) and specify the requirement of item needed.  User may also identify the estimated price (optional).

2.    Supervisor will Verify

Supervisor or line Manager will examine the requirement of the user and shall verify the requisition of the user. Supervisor may also adjust the requirement in the requisition.

3.    Procurement Department

Procurement department will examine the requisition as per policy of the organization and, send the requisition to the management i.e. (Chief executive or Procurement Director, procurement committee) for procurement approval.

4.    Management Initial Approval

Management may approve the purchase and may ask to take formal quotations/proposal from the vendor, (if so required). Immaterial purchases may be procured from the approved vendors.

5.    Procurement officer Proposal

For small item (Like Lap top battery) procurement may be made from one of the approved vendor from the appearing in the approved vendor list. For heavy items (computer) a fresh formal quotation may be requested from vendors.

6.    Selection & Negotiation

A lower bidder will be selected offering the same items, and a further discount is requested from vendor, especially in case of procurement of high amount.

7.    Approval for Final Price

Procurement team will get approval for final price quoted by the vendor from the management, if final price substantially different from the early estimated price.

8.    Purchase order will be placed

Purchase order will be placed specifying the requirement of the items required (a reference to the quotation may also be given in the purchase order).

9.    Good received & inspected

Items received will be checked by the procurement officer, whether or not goods received are as per specification of purchases order. Procurement would also confirm the physical condition (new, not damaged, seal) etc. user of the item may also physical inspect the goods.

10.  Items is Recorded

Items are recorded in inventory system of organization before issue. It means goods are first transferred to warehouse and then issued to the user.

11. Item is issued to user

Inventory item is issued to user against receiving. Items may be directly issued to user against early issue or may be asked to send a fresh requisition for issue.