This procedure is prepared by [YOUR NAME].
Their official company details are the following:
[YOUR COMPANY NAME]
Email: [YOUR COMPANY EMAIL]
Address: [YOUR COMPANY ADDRESS]
The purpose of this Procurement Procedure is to ensure that all purchases made by [YOUR COMPANY NAME] are conducted in a transparent, efficient, and cost-effective manner, aligning with the company’s standards and regulatory requirements.
This procedure applies to all employees involved in the procurement of goods and services at [YOUR COMPANY NAME].
Vendor: A business from which [YOUR COMPANY NAME] purchases goods or services.
PO (Purchase Order): An official authorization for the procurement of goods or services issued by [YOUR COMPANY NAME] to a vendor.
Procurement Manager: Manages the overall process of procurement, including vendor relationships and purchase order approvals.
Department Heads: Identify needs and request procurement.
Finance Department: Ensures funds are available and processes payments.
Identification of Needs
Department heads submit a procurement request to the Procurement Manager detailing the specifications and justifications for the needed goods or services.
Vendor Selection
Evaluate potential vendors based on criteria such as price, quality, reliability, and support.
Use a competitive bidding process whenever possible.
Approval Process
The Procurement Manager reviews and approves the procurement request and vendor selection.
Obtain any necessary approvals from senior management.
Issuance of Purchase Order
A PO is generated and sent to the selected vendor, detailing the goods or services ordered, pricing, and delivery timeline.
Delivery and Inspection
Upon receipt of goods or services, the relevant department confirms that the delivered items meet the specifications and quality standards.
Payment Processing
The Finance Department processes payment to the vendor as per the terms agreed upon in the PO.
All procurement activities must be documented, including but not limited to:
Procurement requests
Vendor selections and evaluations
Approvals
Purchase orders
Delivery receipts
Payment records
This procedure will be reviewed annually by [YOUR NAME], or as needed to reflect changes in regulatory requirements or business operations of [YOUR COMPANY NAME].
Templates
Templates