1 Recognition of Need
Needs Vs Wants
2 Understanding / Development of Specification – Technical & Performance requirement / Quantity / Quality / Delivery / Packaging / Service / Budget
3 Find Potential Source
4 Analyse Supplier – Proposals / Capabilities
5 Select Supplier – Negotiation
6 Contract / Ordering / Delivery / Payment – Administration
7 Performance Evaluation and Feedback
8 Disposal of excess, scrap or surplus
Notes:
The extend and complexity of each steps depends upon the type of purchase, basically the importance/value of the items/service being purchase.
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