Material provisioning (procurement) process

Material provisioning (procurement) is the process of getting the right material, of the right quality, in the right quantity, at the right time, place and price. For a commercial complex needing, say, 10,000 bags of cement, the steps are:

 Requirement -> Specification -> Quotation/Tender
     -> Evaluation -> Purchase order -> Delivery
     -> Inspection -> Storage -> Payment

1. Identify requirements: from the BOQ and work programme, prepare a material schedule showing the quantity and the date needed (cement: 10,000 bags, delivered in lots to suit the pour schedule).
2. Prepare specifications: type and grade, standard (OPC/PPC, NS 49/IS standard), packing and testing needs.
3. Raise a purchase requisition with the approval of the project manager and a budget check.
4. Select the procurement method: in public works (Government offices) this depends on the value, under the Public Procurement Act and Regulations (direct purchase for small values, then sealed quotation, then open bidding); private clients may use an enquiry among approved suppliers.
5. Invite quotations/tenders from approved suppliers, giving the specifications, quantity, delivery schedule and payment terms.
6. Evaluate and negotiate: compare price, quality, delivery period, credit terms, past performance and transport cost; select the best (lowest evaluated) supplier.
7. Place the purchase order/contract, showing the rate, quantity, delivery schedule, penalty and quality conditions.
8. Follow up and expedite delivery to match the work schedule.
9. Receive and inspect: check the quantity, damage, batch/date and test samples; issue a goods received note (GRN).
10. Store and issue materials against requisitions; keep a stock register (FIFO for cement).
11. Verify the invoice and pay, and record the data for cost control and reordering.