Procurement Process and Types

This video tutorial provides an in-depth understanding of procurement, including its definition, importance, and the detailed steps involved in the procurement process. It also explains the differences between direct, indirect, and services procurement, highlighting their roles in business operations. The tutorial emphasizes the significance of efficient procurement practices in ensuring the smooth flow of goods and services.

What is procurement primarily associated with?

• Healthcare

• Entertainment

• Businesses

• Education

Which of the following is NOT a step in the procurement process?

• Identification of needs

• Sourcing

• Marketing

• Negotiation

What is the first step in the procurement process?

• Sourcing

• Identification of requirement

• Negotiation

• Ordering

What does the procurement team need to do after determining the specific item or service to be bought?

• Inspect the goods

• Place an order

• Make a payment

• Research various sources

What is the usual practice for direct purchases in terms of quotes?

• Get ten quotes

• Get at least three quotes

• Get one quote

• Get five quotes

What is direct procurement?

• Purchase of raw materials for manufacturing

• Purchase of office supplies

• Facility management

• Hiring of consulting services

Which of the following is an example of direct procurement?

• Travel services

• Raw materials

• Facility management

• Office supplies

What is indirect procurement?

• Procurement of services not directly used in manufacturing

• Purchase of raw materials

• Hiring of a contingent workforce

• Purchase of machinery

Which of the following is an example of indirect procurement?

• Software subscriptions

• Professional services

• Raw materials

• Office supplies

What does service procurement involve?

• Facility management

• Purchase of raw materials

• Managing the contingent workforce and consulting services

• Procurement of office supplies