21 Examples of Procurement

John Spacey, updated on March 31, 2023

Procurement is the end-to-end process of buying goods and services from external sources. This begins with your purchasing requirements and seeks the best value from the market considering price, life cycle costs, logistics, quality, performance, time, risk, compliance, fairness and sustainability. The following are common examples of procurement steps and considerations.

Procurement Objectives The goals of your procurement practice in areas such as cost, time, quality, performance, risk, compliance and reputation.	Purchase Requests An interface for employees and teams to request procurement services.
Purchasing Requirements Specifying what you need to buy.	Market Research Determining what is available from markets.
Price Analysis Determining a competitive price.	Quality Analysis Evaluating differences in quality.
Value Analysis Determining the best price for value that considers things like quality, performance and risk.	Supplier Shortlist Determining what suppliers will be considered for a purchase.
Bidding Processes Creating competition by soliciting proposals and bids.	Purchasing Negotiation Negotiating potential terms, prices and contracts with suppliers.
Bid Selection Selecting a supplier or purchasing option.	Purchasing Process The process of actually purchasing things e.g. purchase orders.
Repurchasing Process The process of regularly repurchasing things.	Inventory Management Managing inventory levels.
Logistics Managing the delivery of products and services.	Supplier Performance Management Monitoring, evaluating and managing any issues with supplier performance.
Supplier Audits Auditing suppliers to ensure compliance.	Procurement Risk Management Managing risks related to procurement such as logistics and supply risks.
Financial Processes Supporting accounting and financial reporting processes, particularly accounts payable.	Recordkeeping Procurement recordkeeping including all financial, process and audit trail information.
Procurement Compliance Compliance reporting and audits of the procurement process.