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general procurement process

If you're new to the procurement process, or you might not be so sure about it, don't worry—it might sound complicated, but we're here to make it easy for you to understand. Let’s break it down step by step so you can see how it all works. 😊

106procurement process


Step 1 Identify Needs

First, the business figures out what items or services are needed. It’s like making a detailed shopping list and consulting all departments to ensure everyone’s needs are covered.

Step 2 Create PR and Submit for Approval

An employee submits a purchase request (PR) with details like price, quantity, and timeframe. This notifies the company about the need.

Step 3
PR Approval

The purchasing department reviews and approves the PR, allowing the team to proceed with vendor selection.

3.1 Assess and Select Vendors: Find the best vendor by sending requests for quotes (RFQs) and comparing responses based on cost, reputation, speed, quality, and reliability.

3.2 Price and Terms Comparison: Get at least three quotes, compare them carefully, negotiate if possible, and get the final terms in writing.

Step 4 Create PO and Send for Approval

The purchasing team creates a purchase order (PO) based on the chosen quote and sends it to executives for approval.

Step 5 PO Approval

Executives review and approve the PO, and then it’s sent back to the purchasing team.

Step 6 Order to Supplier

With the approved PO, the team places the order with the vendor.

Step 7 Receive THE Product and Receipt

When the goods arrive, they are carefully inspected to ensure they match the order and meet quality standards.

Step 8 Record Purchasing Documents

Finally, all documents related to the purchase are recorded for future reference, audits, and tax calculations.

Procurement processes are crucial for business operations. Any inefficiencies can impact the organization's success. House of Dev Technology is committed to enhancing your understanding of procurement processes.🫡

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