Product procurement is the process of acquiring goods or services from external sources for use by an organisation.
AMIT work with our customers to identify the correct product to meet their requirements, then select the appropriate suppliers, negotiate prices and terms, place orders, then can either direct ship or warehouse the products.
There are several steps involved in the procurement process, including:
- Identifying the need: This involves determining what products or services are needed to meet the organisation’s requirements.
- Supplier selection: The procurement team identifies potential suppliers, evaluates their capabilities and reputation, and selects the best ones.
- Negotiating terms: The procurement team negotiates prices, delivery times, payment terms, and other conditions with the selected suppliers.
- Placing orders: Once the terms are agreed upon, the procurement team issues purchase orders to the suppliers.
- Receiving and inspecting products or services: Upon receipt of the products or services, the procurement team inspects them to ensure they meet the specifications and quality standards.
- Payment: After the products or services are accepted, the procurement team makes payments to the suppliers.
Effective product procurement is essential for organisations to operate efficiently and achieve their objectives. It can help organisations reduce costs, improve quality, and increase competitiveness in the market.