Sustainable Government Procurement —  Shifting to Sustainability

5 Steps of the Procurement Process

1. Market Research

Of course, market research is done by almost all institutions as it involves recognizing the need for supplies or services and developing market research for the said supplies and services. 

Usually, market research covers sourcing for new available suppliers. Depending on the business, a sourcing specialist can help them in identifying new sources of supplies. 

2. Request For Information (RFI)

The second step is to ask for information from all the stakeholders of an institution that needs the supplies. 

Of course, how will you know what they need if you will not ask? Additionally, you will not be able to create a purchase order if you do not know the supplies or services that each department in your institution needs. 

Information such as the number of available supplies and the pricing per supply are just some that you can ask when making the request. 

3. Requisition For Quotation (RFQ)

The request for quotation is part of the procurement process where you ask suppliers for the initial pricing of their materials or services. 

In government procurement, this usually involves public bidding where suppliers are vying to get the contract. Commonly, in this situation, the lowest price bid is the one that the government will select to do its project. 

4. Negotiation Phase

Perhaps, the negotiation phase is the most challenging yet exciting part of the procurement process.

In this phase, the business will negotiate its position regarding the supplies or services that it will procure from its potential supplier. 

Negotiations can also extend in offering concessions to the supplier in the hopes of doing more business in the future.

5. Contracting Phase

The final step of the procurement process, the contracting phase, is where the business takes care of all contracts, invoices, receipts, and documents that were signed and are needed during, before, and after the entire procurement process.

These five steps in the procurement process are always present in every industry and institution as it enables them to acquire their supplies efficiently. To know more about the procurement process, click here. 

Best Value Procurement: What is it?

The best value procurement is a procurement methodology in which tenders are valued according to the principle of acquiring the most value for the lowest price. 

In best value procurement, the expertise of the supplier is used to the maximum to acquire more value. With this approach, the business limits the requirements as much as possible. Suppliers are given the chance to substantiate how they use their expertise to achieve the best result. 

The fewer the requirements are set, the more scope there is for suppliers to make a difference in terms of quality. Thus, according to the principles of this methodology, quality pays for itself at low costs. 

Due to this, best value procurement is ideally suited for sustainable procurement in the public and private sectors. After all, with sustainable procurement, it is important to look beyond just the purchase price and to take into account the costs and effects of a purchase over its entire lifespan. 

Do you want to learn more about when and how to use the best value procurement methodology? Then try our Sustainable Procurement Course that will teach you everything you need to know in integrating best value procurement that will help you to achieve sustainability in your procurement process. Enroll now!