Answer the following: (20pts)

1. What are the Benefits of an efficient procurement process?

An efficient procurement process brings numerous benefits to organizations. Firstly, it
allows for cost savings by optimizing sourcing strategies, negotiating better prices, and
reducing administrative overhead. Secondly, it enables organizations to streamline
operations, improve productivity, and allocate resources more effectively. Thirdly, an
efficient procurement process enhances supplier relationships through effective
communication, collaboration, and timely delivery of goods and services. Lastly, it
ensures compliance with regulatory requirements, reduces the risk of fraud or corruption,
and promotes transparency and accountability throughout the procurement lifecycle.

2.What are the Eight Steps in the procurement process?

PROCESS OF PROCUREMENT
1. Specifying and Planning
2. Identifying and Selecting Suppliers
3. Negotiating and Contracting
4. Placing the Purchase Order
5. Expediting Product Order
6. Receipt and Inspection of Purchase
7. Invoice Clearing and Payment
8. Maintaining Records and Relationship