What Are Procurement Procedures ?

1 ANSWERS

1. Guest882
   

   Every organization that purchases goods or services has standard procurement procedures, the methods they use to acquire those things. These procedures cover all aspects of the procurement cycle, including the selection of the supplier, contract negotiations, order placement and payment. All firms have procurement procedures, and they are used to control spending activity, ensure appropriate approvals are in place and reduce the risk of overpayment. Procurement or purchasing activity encompasses all spending activity, excluding payroll, and often represents more than 50 percent of all expenditures.
   
   In some cases, companies might be required to defend their purchasing contracts. If a vendor who participated in the bidding process feels that they were not provided a fair opportunity to compete, a lawsuit can be filed. Contract law is a source of a great deal of legal activity, and firms with strong procurement procedures are in the best position to defend their business decisions.

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