PROCUREMENT SYSTEM

By: Syed Hamdan Roll # 2664

CONTENTS
Procurement System Importance of Procurement function Procurement Process

Expression of Interest. Selection of vendors Request for Proposal Follow up Payment Warranty

Conclusion

PROCUREMENT SYSTEM
Procurement System refers to collection of
procedures and methods used in an organization for Purchase of Goods and Services required by it. There are two types of Procurement Systems namely:
Traditional Procurement System E-Procurement System

IMPORTANCE
Save cost on holding inventories. Minimizes chance of fraud. Evaluate the supplier. Set the quality standard. Faster processing of order.

Competitive environment. More efficient business operation.

PROCUREMENT PROCESS
Expression of Interest Selection of vendors Request for proposals Awarding contract Follow up Payment Warranty

EXPRESSION OF INTEREST
Project background Supplier response time Timetable of choosing a supplier Requirements Deadline

SELECTION OF VENDORS
Supplier must be registered with Sales Tax department. Has been engaged is the same activity for the last 3 years. Has previous experience of providing the same service to a reputed company. Has a financially sound background.

REQUEST FOR PROPOSAL

Basic Corporate information Financial information Technical capability Product information

Stock availability Customer references

AWARDING CONTRACT
Lowest bidder. Experience Quality Resources

FOLLOW UP
Samples to be examined. Negotiation over

Price Availability of stock Delivery schedule Installation Training

Renewal

PAYMENT
30 days credit period. Installments.

WARRANTY
Replacement warranty. 1 year parts and service warranty on office equipment and machinery. Settlement of claims. Round the clock support in case of any problem.

CONCULSION

FEEL FREE TO ASK