✅ Define the procurement process and identify its four core steps.
✅ Explain the concept of a supply chain and its key components.
✅ Differentiate between direct and indirect supply chains.
✅ Analyze the unique challenges and opportunities for supply chain management in Nepal.
What is Procurement?
Definition: The process of acquiring goods or services from an external source.
Think of it as the formal, strategic process a business uses to get everything it needs to operate.
🎯 Effective procurement directly impacts a company's bottom line and operational efficiency.
The 4 Core Steps of Procurement
1. Need Recognition
The process begins when a department or individual recognizes a need for a product or service.
2. Sourcing
Identifying and vetting potential suppliers who can meet the recognized need.
3. Purchasing
Negotiating terms and formally acquiring the goods/services, often via a purchase order or contract.
4. Payment
Processing the invoice and completing the financial transaction with the supplier.
Activity: Sequence the Procurement Steps
Click each step in the correct order from first to last.
Your sequence will appear here...
Step 2 Deep Dive: Sourcing Suppliers
🔍 Common Sourcing Methods
Online Research: Using B2B portals, search engines, and supplier directories.
Trade Shows: Industry events to meet suppliers face-to-face.
Referrals: Leveraging professional networks for recommendations.
Request for Proposal (RFP): A formal process to solicit bids from multiple suppliers.
E-Commerce Sourcing
In e-commerce, online sourcing is dominant. Platforms like Alibaba, ThomasNet, and Global Sources have revolutionized how businesses find manufacturers and wholesalers globally.
Activity: Match the Sourcing Method
For each scenario, click the best sourcing method.
From Procurement to Supply Chain
Definition: A supply chain is the entire network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.