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Sourcing Cycle

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

Supplier Evaluation

6 Contract / Ordering / Delivery / Payment – Administration

7 Performance Evaluation and Feedback

Supplier Scorecard

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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