Abbreviations , terminologies used in procurement

NMR
MR
PR
PO
PIM
Bid /Proposals / Quotations evaluation
RFQ
RFP
Enquiry
Materials category classification
Long lead item (costlier and the main material)
Bulk material
Critical item (also the main material)
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Abbreviations , terminologies used in procurement
NMR
MR
PR
PO
PIM
Bid /Proposals / Quotations evaluation
RFQ
RFP
Enquiry
Materials category classification
Long lead item (costlier and the main material)
Bulk material
Critical item (also the main material)
Material inspection levels :
Level 0
Level 1
Level 2
Level 3
Level 4
PROCUREMENT STEPS (these are the typical steps for procuring any long lead item/product )
MR prepared by ENGINEERING
MR go to CLIENT/APPROVAL PARTY for approval
Approved MR come from CLIENT/APPROVAL PARTY with comments if any
Approved MR then again goes to ENGINEERING for comments incorporation if any or else directly goes to CONTRACTOR
After receiving MR from ENGINEERING, CONTRACTOR sends enquiry for BID/Quotation submission from
VENDORS/SUPPLIERS
VENDORS/SUPPLIERS submitts there Quotation to CONTRACTOR
CONTRACTOR receives quotation from VENDOR/SUPPLIER evaluate the commercial (price related) propsal and submit to
ENGINEERING for technical proposal for evaluation
ENGINEERING evaluates the technical proposal and submit back to CONTRACTOR
CONTRACTOR then prepare the purchase order (PO) and send it to VENDOR/SUPPLIER (he will be the selected (selection
based on technical and commercial evaluation) one out of many VENDOR/SUPPLIER
VENDOR/SUPPLIER receive the PO and he will propose the PIM based on material inspection level
once the PIM is done manufacturer/vendor/supplier will start the production
After production/manufacture material is delivered to the site
Non material request
Material request
Purchase request
Purchase order
Pre inspection meeting
Request for quotation
Request for proposal
to ask for something to vendor/supplier
this means product drawing, catalog, user manuals
Once the material is approved by client there is a Purchase order to be made by contractor
Inspection meeting conducted by client for material before starting the production