At LSO we do procurement the right way using our established supplier networks and industry know how. Procurement is the first phase of the supply chain, and we prefer to start off on the right foot by garnering the most favorable solution for your Direct/Product Related and Indirect/Non-Product Related Procurement needs. The process involves more than just the purchasing of materials/goods/services. Typically it is purchasing or acquiring of materials at the right quantity, desirable quality and for the best price. Materials must and will be from a trusted source and delivered for use at the optimal time. The process also involves procurement strategy, selection of suppliers and supplier networks and preparation and management of contracts.
Procurement Steps and Activities
If the customer doesn’t already have an established supplier, we will research the most favorable source from both within and outside our supplier network.
When one or more suitable suppliers have been identified, request for quotations, proposals and information will be obtained from each and compared.
References for product/service quality are reviewed and any requirements for follow-up services including installation, maintenance, and warranty are investigated.
Negotiations and Contract:
After negotiations, price, availability, customization possibilities and delivery schedules are established and a contract to acquire the product/service is created.
Receiver preparation, delivery, and payment for the product/service are completed, based on contract terms.
Consumption, Maintenance, and Disposal:
During this phase, we evaluate the performance of the product/service as they are consumed.
When the contract expires or the product/service needs to be re-ordered, company experience with both the goods and the supplier are reviewed. If satisfied the re-order is placed, else we begin the search for other product/services and suppliers once again.