People go to shopping malls to select then pay for the goods they want or need. They have known this as a simple process of buying. In an agency or organization, it is a lot different. Before it can receive the goods or services it requires, it has to go through the process of procurement, where preparation and processing must take place. Here is how the simplest process of procurement goes:
1. Know what they need.
This is an important first step in procurement. Typically, departments or sections in the agency submit purchase requisition slips that contain the supplies they require to the procurement or purchase office. These departments have to make sure that the items they are asking are necessary to their functions.
2. Review of the requested goods.
The members of the procurement or the purchase manager and his or her staff, or simply the buyers, review the purchase requisition slips they receive each time. Because this is an everyday task for them, they have the ability to know if the supplies being requested for purchase are necessary. If they noticed new items, they usually ask for justifications.
3. Approval of the requests.
After the review, the buyers sign the requests. This indicates that the items are ready for purchase.
4. Submission of the requests by the buyers.
If the organizations follow an automated system in buying, like the Enterprise Resource Planning (ERP), the buyers simply have to key-in the purchase orders and pay the suppliers through the system. If the businesses are following a manual process, though, the buyers submit the purchase orders to the supplier through letter, fax or email and send payments in modes they previously agreed upon.
However, if some of the supplies being asked are new and have not been procured yet, the buyers have to send requests for quote from various suppliers. These quotes must indicate prices, quantity and date of delivery. The one that best meets the needs of the business will win the contract.
Contracts are a very important part in the process of procurement, especially in government procurement. Because these contracts specify the delivery and fixed pricing of goods and services at a certain period of time, the federal and local governments are able to manage their resources effectively.
Government contracts, however, are not easy to win. Bidding itself is also not easy. This should be in the minds of the entrepreneurs. However, the Government Procurement Exposed eBook can help any business win them with less effort. It offers guidelines on how to successfully win government contracts and subsequently establish a financially solid company.
Yes, government procurement paves the way for new business opportunities for existing and would-be entrepreneurs. All it just requires is going through the proper directions. The Government Procurement Exposed eBook will provide just that. It will not waste readers’ time and instead discuss and go direct to where the new life on businesses will depend: government procurement. Grab a copy of the Government Procurement Exposed eBook and start dreaming of an income-generating organization.
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About the Author:
The steps mentioned above are just some of the simple processes involved in procurement. Some organizations may still find this difficult to follow, but this provides a clearer picture of how their resources are spent through purchase of goods and services. On the other hand, for the entrepreneurs who find income opportunities through procurement, please visit this link: http://www.governmentprocurementexposed.com. Also feel free to share, comment, and basically talk about the insights here. We’d love to hear from you!
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