Purchasing Operations
  Steps in the Purchasing Cycle


Play audio!
 Getting the right product to the right customer at the right time can sometimes be an arduous task. How do companies make sure every detail falls into place?
Successful purchasing organizations follow a purchasing cycle or process to ensure that the important elements are not overlooked. Each material or service being procured will require a different level of activity and priority. The experienced purchaser will ensure that each of the ten steps is fully performed and executed.
The 10 Steps in Purchasing
Start
Click the text access the information for each step of the purchasing cycle.

1. Recognition of Need

2. Specify Need
       
 

6. Deliver Purchase Order

5. Prepare Purchase Order

4. Establish Price & Terms

3. Determine Sourcing Options

7. Expediting

8. Receive & Inspect

9. Approval & Payment

10. Maintain Records

View how the purchasing cycle might work as a manual or computerized process:
Manual

Click me!
Computerized

Click me!

Next, an example of the purchasing cycle.