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Procurement Process

The document outlines the procurement process for a project including issuing purchase orders, fulfilling orders, and managing supplier contracts. It involves identifying required products, documenting purchase orders, approving orders, issuing them to suppliers, receiving products, reviewing them, resolving any issues, accepting the products, and approving payment. The procurement manager oversees the process while the project manager approves orders and resolves issues. Procurement is tracked using a register and purchases are requested using purchase order forms.

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12 views

Procurement Process

The document outlines the procurement process for a project including issuing purchase orders, fulfilling orders, and managing supplier contracts. It involves identifying required products, documenting purchase orders, approving orders, issuing them to suppliers, receiving products, reviewing them, resolving any issues, accepting the products, and approving payment. The procurement manager oversees the process while the project manager approves orders and resolves issues. Procurement is tracked using a register and purchases are requested using purchase order forms.

Uploaded by

barwatch
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Procurement Process ©

For [Project Name]


1 Procurement Process
1.1 Overview

Provide an overview of the Procurement Management Process. For example:

1.2 Issue Purchase Order

The first process required to purchase product from an external supplier is the creation and
issue of a Purchase Order.

Identify Required Product


The Procurement Manager (or Officer) identifies the products required to be purchased (and
the respective supplier) from the Procurement Plan.
Document Purchase Order
To request product from an external supplier, the Procurement Manager must complete a
‘Purchase Order’ form.

Approve Purchase Order


The Purchase Order is then forwarded to the Project Manager for approval.

Issue Purchase Order to Supplier


Once the Purchase Order is approved by the Project Manager, it is issued to the supplier for
action (by fax / mail / post).

Communicate Delivery Timeframes


The Supplier then confirms receipt of the Purchase Order and issues an ETA (Estimated
time of Arrival) for the product.

1.3 Fulfill Purchase Order


The Purchase Order is then processed by the supplier and the product delivered to the
project as ordered.©

Receive Product
The supplier fulfils the order by delivering the product (as defined by the Purchase Order) to
the Project.

Review Product
The product is then inspected / reviewed to access whether or not it meets the requirements
of the initial Purchase Order.

Resolve Product Issues


If the outcome of the review is that one or many of the requirements set out by the Purchase
Order have not been satisfactorily achieved, then a formal Issue is raised by the
Procurement Manager.

Accept Product
Once all product delivery issues have been resolved, the Project Manager may formally
accept the product on behalf of the project team and will notify the supplier.

Approve Payment
The supplier will then send the project team an invoice, which is approved for payment by
the Project Manager (given no current outstanding issues).

1.4 Manage Supplier Contract


The above procedures are undertaken for each Purchase Order issued by the project.
Confirm Milestone Reached
During the Planning phase a number of supplier review milestones will have been confirmed
as reached.

Review Supplier Performance


The Procurement Manager leads a review of the supplier's performance.

Identify Supplier Issues


Any issues identified during the supplier performance review are listed.

Resolve Supplier Issues


The Project manager then leads the resolution of each issue identified through negotiation
with the supplier.

Communicate Review Outcome


Once the supplier performance review is completed and any issues resolved, the outcome of
the review is communicated to key project stakeholders (e.g. the Project Sponsor).

2 Procurement Roles
Define the roles and responsibilities for all resources involved with the procurement of
product:

2.1 Procurement Manager / Officer


The Procurement Manager (or Officer) is responsible for ensuring that the entire
Procurement Management process is executed appropriately.

2.2 Project Manager


The Project Manager acts as a checkpoint to ensure that the Procurement Management
Process is being undertaken properly.

3 Procurement Documents
List any other documentation used to control the purchase of product for the project.

3.1 Procurement Register


The ‘Procurement Register’ is the log / database where all Purchase Orders are registered
and tracked through to approval.

3.2 Purchase Order Form


The ‘Purchase Order Form’ is used to request the delivery of product by an external supplier
to the project.

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