End-to-End Procurement Process: Explained

11th February 2022

End-to-end procurement process… 8 stages you need to know about!

Do you want to learn more about the end-to-end procurement process? Whether you’re new to procurement or an experienced buyer, learning more about the process can be beneficial to your business. It can help you lower your costs and drive greater value from your purchasing behaviour.

In this blog, we’ll outline the 8 stages of the end-to-end procurement process. Keep reading to find out more!

The 8 stages of the end-to-end procurement process

  1. Identify your need – what do you want to procure?

Firstly, you need to identify a business need. What products or services are you looking to procure? This is an important first step, as it will help you lay the groundwork for the rest of the process. 

  1. Develop the scope of your project

Next, it’s time to develop the scope of your project. This is more than just identifying a need – you need to consider the size, scale and complexity of the work. This could include factors such as:

  • Budget
  • Number of suppliers
  • Timescales
  • Lots (if applicable).
  1. Choose your method

Before you continue with the end-to-end procurement process, you need to choose a method of procurement. There are many different methods out there, and the one you choose will depend on the project and your business.

For example, two common procurement methods include open tendering and restricted tendering. With open tendering, any suppliers are invited to bid for projects in an open, transparent way. Generally, buyers are looking for the highest value services for the lowest price. This is also known as the most economically advantageous tender, or the MEAT.

On the other hand, restricted tendering places a limit on the number of suppliers that can bid for a project. In most cases, the buyer will select the suppliers that are invited to bid, usually if they meet certain criteria. This method ensures that only qualified suppliers are able to bid for the work, effectively streamlining the process.

  1. Produce the specification

The next stage of the end-to-end procurement process is to write your project’s specification. The details of your specification will be determined by several factors, such as your business and chosen procurement method. However, generally, an invitation to tender (ITT) will include the following information: 

  • Description of the work
  • Specification and marking criteria
  • Delivery details
  • Terms and conditions
  • Service Level Agreement (SLA).

For many businesses, the idea of writing a specification is daunting. Luckily for you, Hudson Procure are here to help! With Procure Consult, we provide ad-hoc procurement consultancy. We can write the specification on your behalf, ensuring you’re ready to find the right suppliers for your business.

  1. Publish a tender notice

Next, you need to publish a tender notice. This gives suppliers the opportunity to find your contract and submit a bid.

If you’re unsure where to post your project, why not visit one of our 11 sector-specific tender portals? With Procure Post, you can post your project for FREE, providing you access to hundreds of qualified suppliers.

  1. Evaluate the tender responses

Now it’s time for one of the most important parts of the end-to-end procurement process. Once the deadline has passed and you’ve received the tender responses, it’s time to evaluate them and choose a supplier.

There are different evaluation methods to choose from. However, it’s important that you stick to the one outlined to suppliers to ensure that the process is fair. So, if you specified 50% quality and 50% price, you need to honour that ratio.

Typically, buyers will evaluate each question individually and award it a score between 0 and 10. In most cases, a score of less than 5/10 will be rejected immediately.

  1. Choose a supplier

You might be wondering how to choose the best supplier for your project.

As we’ve already established, it’s common for buyers to look for the MEAT. In other words, you should look for the highest quality services for the lowest price. This will ensure that you receive the best value for money.

So, when evaluating the tender responses, don’t just consider either the price or the quality – you need to consider both.

  1. Award the contract

The final stage of the end-to-end procurement process is to actually award the contract to your chosen supplier.

Once the winner has been notified, the work can commence. However, the process doesn’t end there. You should continue to monitor the supplier’s progress to ensure that they’re meeting the requirements of the contract.

In summary

So, now you know everything you need to know about the end-to-end procurement process. Firstly, you need to identify your needs and develop the scope of the project. Then you need to choose your procurement method. For example, two common methods of procurement are open tendering and restricted tendering.

Next, it’s time to write the specification and post your project on a tender portal. This will help the right suppliers find the opportunity and submit a bid for the work.

Once the deadline has passed, you can evaluate the tender responses and choose a supplier for your project. Once the winner has been notified and the contract has been awarded, the work can commence. 

How can Hudson Procure help with the end-to-end procurement process?

At Hudson Procure, our procurement experts have nearly two decades of experience. No matter what kind of support you’re looking for, we can help.

Procure Consult

With Procure Consult, we offer support with tender management and ad-hoc procurement consultancy. Our expert team will manage the end-to-end procurement process or offer assistance with any stage, as and when required.

Procure Health Check 

With Procure Health Check, we’ll conduct a full review of the strategic and operational procurement processes within your organisation. We’ll identify the areas that need improvement and help you drive greater value from the procurement process.

Procure Analyse 

The purpose of Procure Analyse is to conduct a high-level analysis of your spending activity. We’ll help you understand your current purchasing behaviour and highlight areas that can deliver greater value. Procure Analyse is also offered as part of Procure Health Check or as a standalone service.

Procure Outsourcing 

With Procure Outsourcing, we deliver a range of procurement solutions on an outsourced basis, completely bespoke to you. This can range from delivering multiple tender projects as a package to delivering the full procurement function of your organisation.

Procure Post

Are you trying to find a supplier for your project? Post your tendering opportunity onto any of our 11 sector-specific portals for FREE with Procure Post!

Housed by our sister company, Hudson Discover, our portals host thousands of tendering opportunities for organisations of all sizes. We’ll help you identify your requirements and find the most suitable suppliers for your business.

Get in touch for a consultation and find out how we can help your business grow.

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