The process involves acquiring goods and services from different suppliers at the best price. Management in any business must, therefore, understand the art of acquiring goods and services. For a business operation to prosper, they must know certain procurement process. Procurement should be a wide process which involves every department in the business. Those companies who request for quotation need to be flexible and dynamic with the procurement process. Limited tender and how to bid on government contracts involves mainly the use of quotes while the open tender is the simplest to use.
You should first review the requirements before looking for the government contract jobs. Conducting an internal needs analysis is essential before selecting the best procurement process to use for your business. The items being benchmarked can be brand new items or sometimes old goods which need to be ordered again. If the company needs specific requirement from the goods they are ordering then they need to be up to date on those orders and requirements to avoid future regrets. Get to know also about “what is an RFQ”.
Vendor selection is the next step after identifying the type of goods needed for your business. Apart from delivering quality goods and services the vendor should at least have a good reputation. A thorough research should be done especially on the government contract website to look for a vendor who can meet all your needs. You can also develop a list of vendors that offer the goods your business needs. A vendor inability to meet the selection criteria can result in serious losses for the organization.
You must first get an approval from the management before you request for quotation. This normally includes creating a good purchase requisition for the management. The purchase order will be issued by a buyer to the manufacturer and it indicates the goods and services that both parties agreed on. The seller will, therefore, deliver the goods prior to the agreed payment. The buyer can then send an invoice to the seller to describe the exact contents of the order.
Payment should be made in form of cash and at the time frame that both parties agreed on. All the records of the procurement process should be stored well to assist with the audit process. If a procurement process is done in the correct and required order, then you can be assured of the best results. The procurement process will ensure you pay the best prices for the products you want and also save you a lot of time. It is essential to carry out a thorough tender evaluation in a more structured and disciplined manner. The contract contains all the activities that should be done by both parties. For further information, click here!