Final answer:
The basic purchasing process involves several steps: identification of needs and requirements, sourcing and supplier selection, price negotiation and contract agreement, order placement and follow-up, receipt and inspection of goods or services, invoice verification and payment, and supplier evaluation and performance feedback.
Step-by-step explanation:
The basic purchasing process involves several steps:
- Identification of needs and requirements: This step involves determining and clearly defining what needs to be purchased, including the quantity and specifications.
- Sourcing and supplier selection: In this step, potential suppliers are identified and evaluated based on factors such as cost, quality, delivery time, and reputation. The final supplier(s) are selected.
- Price negotiation and contract agreement: This step involves negotiating the price and other terms and conditions with the selected supplier, and reaching a mutually agreed contract.
- Order placement and follow-up: Once the contract is finalized, the purchase order is placed with the supplier. It is important to follow up on the order to ensure timely delivery and resolve any issues.
- Receipt and inspection of goods or services: When the goods or services are delivered, they should be inspected to ensure they meet the specified requirements and quality standards.
- Invoice verification and payment: The received goods or services are matched with the supplier's invoice and verified for accuracy. Payment is made according to the agreed terms and conditions.
- Supplier evaluation and performance feedback: After the completion of the purchase, the supplier's performance is evaluated based on factors such as quality, delivery, and customer service. Feedback is provided to the supplier for continuous improvement.