1. Define the requirement
Describe the outcome, mandatory specifications, quantity, unit of measure, location and timing. Do not begin with a preferred supplier unless there is a legitimate reason.
2. Confirm authority and budget
Before somebody commits the organization, confirm who can approve the expenditure and who can place or amend the order.
3. Learn or solicit
Decide whether you are doing market research, asking for indicative price and availability, requesting quotations, or inviting proposals. Tell suppliers which one it is.
4. Compare on a common basis
Normalize quantity, currency, freight, installation and other direct costs. Confirm technical compliance separately from price.
5. Place and manage the order
Use an authorized PO or contract, capture changes through controlled amendments, and track partial deliveries, backorders and cancellations.
6. Receive and accept
Physical arrival is not always final acceptance. Record shortages, damage, wrong items and testing requirements before payment approval.
7. Reconcile and close
Resolve invoice differences, credits and returns, then close completed order lines and release unused commitments.