The Procurement Process Model

1.5: Procurement process model

The Procurement Process model shows the various steps and stages that a particular procurement activity follows in meeting operational requirement these stages have detailed action which need to be done before continuing to the next stage. Emmett and Crocker (2008), argue that the procurement process model for most areas depicts like the figure below;

a) Need identification

The procurement process model begins with identification of need(s) for operational sustainability of the organization. These needs are determined by daily activities of individuals and departments which are consolidated to become the overall organization need. This information on most organization become the basic information or input for

Specification can therefore be defined as a communication tool used by procurement to communicate the need of the organization to the external users that has interest in the product or service in question .There are various forms of specification which are technical, functional, performance, sample, and brand and design (Lysons and Gillingham 2003)

The technical specification gives a highly detailed description or technical properties and activities to perform by the product. Performance gives the output range within which the item must function; whereas the function type ensures the product performance; fit for the purpose or what it has to achieve. Sample type gives a guide as suitability especially where specification is very difficult to

As part of the activities at this stage, the attractiveness of the market in terms of its expansion and contraction will influence the number of suppliers. This source can be identified through the internet trade journals, trade exhibition yellow pages of telephone directorate and suppliers’ data base of the organization. In this regard (Weele, 2010) suggested that the source should be identified and evaluated instantaneously instead of treating it as a separate stage in the procurement cycle.

Sourcing phase includes, procedures like asks or appeal for quotation which are sent to suppliers, escorted by additional documents, such as drawings, specification and any document or information that will enable latent suppliers to submit a quotation.

D) Enquiry and evaluation

This phase is very significant in the procurement process cycle because this resolute the excellence of the output (product) to be obtained. Suppliers are asked to give information on the following: details of the organization, financial details, equipment and facilities, management skills and reference to assess the capabilities of that particular source before it will allow providing information (quotation or tender) on the product or