7 steps of purchasing materials and goods for businesses

Procurement of supplies and goods plays an important role in production and business activities, helping businesses ensure the quality, price and supply schedule of materials and goods. In the article below, 1C Vietnam will work with businesses to learn in detail about 7 steps to implement a professional and effective procurement process for supplies and goods .

1. What is procurement of goods and materials?

Procurement of supplies and goods is the process by which businesses search, select and purchase raw materials, finished products, products and services necessary to maintain business operations. This activity is carried out to ensure that businesses always have enough supplies to produce, provide services or sell goods to customers effectively.

2. Some factors businesses need to consider when purchasing supplies and goods

Procurement of supplies and goods is an important activity, directly affecting the production and business activities of the enterprise. At that time, businesses need to pay attention to the following main factors:

• Quality of goods: Businesses need to carefully check the quality of goods to meet the set standards.
• Price and cost: Businesses need to consider price and quality, ensuring that the price is reasonable and suitable for the business's budget.
• Suppliers and partners: Businesses need to choose reliable and reputable suppliers, giving priority to building long-term cooperative relationships.
• Availability and delivery time: Ensure material availability and delivery time are consistent with production plans.
• Technical support and after-sales service: Evaluate the supplier's technical support and after-sales service capabilities.

3. Procurement process for materials and goods

Procurement of supplies and goods is an important process for businesses, directly affecting profits and reputation. To ensure success, businesses need to clearly understand and effectively implement this process. Below are 9 steps to specifically implement the procurement process of materials and goods, including:

3.1. Step 1: Determine the need to purchase materials

Determining procurement needs is the first important step in a business's procurement process, helping to save time and resources, avoiding redundant purchases or buying from unreliable suppliers.

To determine shopping needs, businesses need to make a list of items to buy. This list needs to include information such as item name, quantity to buy, time to buy,...

Then, businesses need to find a reliable supply source that meets the criteria of product quality, reasonable price, quick delivery time,...

3.2. Step 2: Search and select a supplier

At this step, businesses need to focus on researching and evaluating potential suppliers based on important evaluation criteria such as quality, price, and supply ability.

3.3. Step 3: Negotiate and sign the contract

To ensure benefits for the business, contract negotiation is the next important step after identifying the supplier. This process includes negotiations on price, delivery terms and supply times. To avoid conflicts, contracts need to be clear and transparent.

3.4. Step 4: Coordinate and control inventory

Inventory management is an important job in business purchasing activities. The purpose of this job is to ensure that the business always has enough goods to meet customer needs, while avoiding wasteful storage of excess inventory. Using technology and inventory management software can help businesses optimize this process.

3.5. Step 5: Ensure quality and inspect goods

To ensure the quality of goods before delivery, businesses need to develop inspection standards and regulations for suppliers. This will help control the quality of the supplier's products or services, thereby ensuring the goods meet customer requirements.

3.6. Step 6: Payment and financial management

Financial management in the procurement process is a job that needs attention. Businesses need to pay on schedule and according to the contract, this will help maintain good relationships with suppliers.

3.7. Step 7: Optimize the goods procurement process

Optimizing the procurement process is an effective way for businesses to improve performance and reduce costs. Using tools and software to support procurement management can help businesses carry out this process more easily and effectively. Management software will analyze procurement data and record clear and accurate history to help businesses better monitor and optimize the material procurement process.

In short, the process of purchasing materials and goods is a complex process and needs to be carried out strictly to ensure efficiency. Applying the correct procurement process will help businesses save costs, improve production and business efficiency and ensure product and service quality. In addition, businesses can use support software such as 1C:Company Management software. Possessing powerful features, the software helps businesses manage the procurement process of materials and goods simply and effectively. Contact 1C Vietnam today to receive consulting support on purchasing management solutions suitable to the specific characteristics of your business.