Generic Purchasing-Decision Model

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Kraljic Model > Forum > Generic Purchasing-Decision Model

Generic Purchasing-Decision Model
Fleur
I am looking for more information about the Generic Purchasing-Decision Model. It's main phases are: 1) Need Identification, 2) Information Search, 3) Evaluation of Alternatives, 4) Purchase and Delivery, and 5) After-purchase Evaluation. Who can provide some more details on this model? Thank you! (...) Read more? Sign up for free
 

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Procurement Phases
Dan
The procurement process usually consists of the following steps:
1. NEED IDENTIFICATION: what should be bought?
2. INFORMATION GATHERING: search for suppliers who can satisfy the requirements.
3. SUPPLIER CONTACT: When one or more suitable suppliers have been identified, Requests for Quotation (RFQ), Requests for Proposals (RFP), Requests for Information (RFI) or Requests for Tender (RFT) may be advertised, or direct contact may be made with the suppliers.
4. BACKGROUND REVIEW: References for product/service quality are consulted, and any requirements for follow-up services including installation, maintenance, and warranty are investigated. Samples of the P/S being considered may be examined, or trials undertaken.
5. NEGOTIATION: Negotiations are undertaken, and price, availability, and customization possibilities are established. Delivery schedules are negotiated, and a contract to acquire the P/S is completed.
6. PURCHASE: signing of contract
7. FULFILLMENT: Supplier preparation, shipment, delivery, and payment for the P/S are completed, based on contract terms. Installation and training may also be included.
8. CONSUMPTION, MAINTENANCE AND DISPOSAL: During this phase the company evaluates the performance of the P/S and any accompanying service support, as they are consumed.
9. RENEWAL: When the P/S has been consumed and/or disposed of, the contract expires, or the product or service is to be re-ordered, company experience with the P/S is reviewed. If the P/S is to be re-ordered, the company determines whether to consider other suppliers or to continue with the same supplier.
 

   

 
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Alec Fraher, Health and Social Care Professional, United Kingdom, Member
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