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Explain and discuss the Detailed Procurement Process steps

It involves a series of processes which are essential in getting a product or a service. the process
starts from requisition u to purchase of the order and finally invoice approval. Although we
sometimes use procurement purchasing in interchanging manner the two slightly differ fro each
other. purchasing is defined as overarching process of getting necessary good and services in
behave of organization. procurement on the other hand describes the real activities which are
involved in obtaining those goods and services. these essay will discuss the procurement process.
Step 1: Needs Recognition
The first step is the needs recognition. in these stage the business sketches up a accurate plan of
purchasing goods and services and in a timely and also cost effective way. the process of
procurement will always begin after realizing the need of a good or services form another
company. This is done by looking at the business and recognizing the need in each department.
Step 2: Purchase Requisition
Purchase requisition is the second step in the process and in this stage the customers will submit
requisition for the purchase of goods and services. Requisition is done through a written paper or
an electronic papers and its aim is to request the procurement teams to assist in meeting the
existing demand. the requisition paper entails critical information which is needed in obtaining
the appropriate goods and services.
Step 3: Requisition review
the third process is the requisition review and it’s done after the requisition is authorized and
then cross-checked for the purpose of budget availability and after which the process of
procurement can officially begin. in these stage the functional manager as well as head of
department go through the needed package and look at the request if its really needed and
whether the funding is available.
Step 4: Solicitation process
the solicitation process is what follows and during these stage the team involved I procurement
with an individual plan of procurement and then come up with a sketch of corresponding
procedure of solicitation after the request is the accepted and the PO generated. Complexity of
what is needed then determines the breath of the individual plan of solicitation. After the
approval of budget the team of procurement sends out as many quotation request as possible to
the suppliers with the aim of getting different bids for the purpose of choosing the best vendor.

Step 5: Evaluation and contract

the nest process is evaluation and contract and in these stage the procurement team together with
the evaluation team then studies and gets the assesses to the supplier quotation. this is done after
the solicitation process is done after the supplier is chosen and who meets the existing
requirement. after choosing the vendor the negotiation of the contract are done and signed and
the vendor gets the purchase order. after the vendor agrees with the PO then a contract is formed.
Step 6: Order management
order management is the sixth stage and during these stage the vendor meets deadline and
delivers the requested goods and services. after the buyer has recied the good or services
inspection is then done in order to make the vendor aware of the problems with the goods
received
Step 7: Invoice approvals and disputes
Invoicing approval and disputes is the next stage. It’s an important stage in the procurement
process and through the software’s of procurement like the procurement cloud of kiss flow and
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which gives an advantage over the other competition. Kiss flow does three way matching of the
GRN, supplier invoicing, PO in order to acertain there areno abnormalities I the order and the its
accurate.
Step 8: Record Keeping
the last stage is the record keeping and it’s done to ensure that the buyer can keep track on the
payment process and also for bookkeeping and for the purpose of auditing. all the documents
relevant from the stage of purchase to the invoicing stage which have been approved are all kept
in one point.

QUESTION TWO
Explain and discuss the Fulfillment Process steps
Receiving inventory
the fulfillment process begins with receiving of the inventory. in the real sense there are only two
ways in which the ecommerce company can use in managing its inventory. these companies have
the option of receiving as well as stocking their inventory in their house or doing an outsource of
their stock and other related tasks to the outsourcer of a ecommerce order fulfillment. if the
corporation has chosen to use the first option it will have to incur cost in taking stock, inspection
of their inventory, labeling, and the operations done in their inventory system. the responsibility
will be done by the partners of order fulfillment or the supplier if the organization has chosen to
outsource or do drop ship.
Storing inventory
storing inventory is the next stage and in these stage is one chooses to warehouse the inventory
by yourself, then you will have a set of new duties to be accomplished after receiving portion has
been received. the very important element on the inventory list will be shelving the inventory and
keeping a very tight check on what comes in and what is going out so as to maintain a faster
shipping process.
Processing the order
the other stage is processing of the other. Those businesses who have closed to do outsource
order fulfillment will not have to worry on the details of order processing. This is because they
pass the request of order to their partners and have the rest be done by them. In this stage the
order is then chosen off the shelf, taken to the packing station, done inspection to realize any
kind of faults, done their packaging and then transported to the station of shipping for those
companies managing their own inventories. These stage can however be bypassed. The order
request is passed to the fulfillment partner and who will handle the rest.
Shipping the order
The other stage is shipping the order and in this stage he delivery system which would work
optimally is then chosen. The selection is done on the basis of the order size, the weight of the
order and the requirement specified in the order. the stage is most of the times outsourced to
the carrier of the third party. the best shipping method is the determined by the carrier after
which the station of shipping can then update of the status of the order to the seller so as to know
when to expect the order.
Handling returns
The last stage in order fulfillment is handling of returns. in these stage it involves the ability of
returning unsatisfactory things order and quickly. it has been a crusial consideration in ensuring
the goods are returned easily and quickly in any ecommerce shoppers. there must exist very clear
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and strict guidelines and polices which are available for both the buyer and the staff. this is made
to make sure that replacing, receiving as well as refunding of the returned goods is done as
quickly as possible. many of the buyers will never purchase from a ecommerce which has no
return t store policy.