How to choose the right procurement method?
You are Here: Procurement Software >> Procurement FAQ >> How to choose the right procurement method?
The right procurement method for you will depend on the context you’re ordering in. let’s go through a few example situations. Let’s say a critical supplier of the company can not suddenly deliver products because of geopolitical tensions. If the company’s extremely short on time and has a backup plan and another supplier ready, it can go for single-source procurement and only order from its backup vendor. This saves administrative effort and makes risk assessment straightforward.
However, if the organization has some time to spare in such a situation and does not want a competition-free environment, it can use RFQs and get some price quotes.
If your company needs a non-specialized good that can be easily replaced (say, office supplies), it can go for open-tendering and open bids to all qualified bidders. Encouraging competition will make the company benefit from savings.
On the other hand, if a particular good or service is highly specialized and quality of utmost importance, it can go for restricted tendering to retain some competition but control quality more tightly.
If the team needs to look for available solutions before confirming a PO, they can go for RFPs or two-stage tendering.
Recommended Reading:
Procurement Software for Small Business in 2023 - How to Choose?
Top 5 procurement tools available in the market and which to choose
How to Build a Solid Procurement Strategy for 2023 [9 Steps]
11 Essential Procurement KPIs You Can’t Ignore
Top 4 Procure to Pay Solutions Your Business Needs
5 Most Important Procurement Solutions in 2023 You Need
The Vendor Management System (VMS) Buyer’s Guide 2023
The Ultimate Guide to a Truly Effective Procure-to-Pay Process
Alternatives:
Buyerquest Alternative
Fraxion Alternative
Jaggaer Alternative
Negotiatus Alternative
Netsuite Alternative
Oracle Procurement Cloud Alternative
PRM360 Alternative
Proactis Alternative
ProcurementExpress Alternative
Procureport Alternative
Prokuria Alternative
Promena Alternative
Tipalti Alternative
Tradeshift Alternative
Tradogram Alternative
Tyasuite Alternative
Vroozi Alternative
People also ask
- How to develop a procurement strategy?
- Difference between procurement and strategic sourcing
- How does procurement software work?
- What is procurement software?
- What is source-to-pay?
- How to manage procurement risks?
- What is category management in purchasing?
- What is spend analysis?
- What is e-procurement?
- What is a procurement card?
- What makes good procurement software?
- How to measure ROI in Procurement?
- How to reduce costs with procurement spend analysis?
- How can procurement enhance business profitability?
- How to reduce costs with procurement spend analysis?
- How should you measure procurement performance?
- What is procure to pay in accounts payable?
- What are the challenges in the procure-to-pay process?
- What is the difference between procurement and contract management?
- What is indirect procurement?
- What are the examples of direct and indirect procurement?
- What are the benefits of eProcurement?
- What is a procurement plan?
- How to solve procurement challenges?
- How to automate the procurement process?
- How to improve the procurement process?
- What are supply chain and procurement?
- How to improve the procure to pay cycle?
- How to make procurement more efficient?
- How to measure procurement KPIs?
- How to measure procurement performance?
- How to measure cost savings in procurement?
- How do you keep track of all purchasing activities?
- What is the main purpose of a procurement audit?
- How to optimize the procurement process?
- Purchase-to-pay vs. Procure-to-pay
- How to implement centralized purchasing?
- How to make a procurement plan?
- What are the documents used in the procurement process?
- What Are Two Advantages of the Procurement Integrated Enterprise Environment?
- How to manage a procurement system?
- How to choose the right procurement method?
- What are the best procurement strategies?
- What is a procurement policy?
- How to improve the procurement department?
