NEWS AND MEDIA
WHAT IS THE DIFFERENCE BETWEEN PROCUREMENT AND PURCHASING
The term 'procurement' covers, for all areas of an institution's non-pay expenditure, the entire process of acquiring goods and services from third parties. It includes identification of requirements, specifications, assessment of risks, management of tendering processes, ordering, contract award management and monitoring of suppliers' performance. The procurement process takes into account factors such as the cost over the life (whole life costs) of the good or service, and the quality necessary to meet users' requirements. It is distinct from 'purchasing' goods and services, which refer to the specific activity of committing expenditure and which tend to focus on issues of price rather than of value.
Here are some pratical and useful stages for procurement cycle:
Ø Requirement to Purchase
Ø Plan the Process
Ø Prepare the documentation
Ø Identify possible suppliers
Ø Issue/Receive back the tender/quotation documentation
Ø Evaluate the submissions
Ø Award and place the contract
Ø Pay the supplier
Ø Manage and monitor the contract
Ø Review the process
Of such important steps Topland has been conducting and improving with suppliers, we are establishing the solid foundation --- securing the quality and price for Topland valued clients.