Practically there is no one-size-fits-all purchase process. Some organizations require a formal process to suit their complex environment, which is often the case in government or education. In those industries, vendors must comply with strict guidelines. Others, for enterprise businesses like heavy machinery parts, require a few key steps in an effort to manage budgets more effectively. Below is a picture of the parts and assemblies of heavy equipment.
Following a proven step-by-step technique will help management successfully achieve its goals. Below is a diagram showing a typical purchasing process.
Step One: Requirement, need specification
End users are usually the person who involved in developing the specification. The specification is a document which clearly and completely describes the essential requirements of the heavy machinery parts being purchased. Examples of the specification are OEM part number, quantity, machine model and stock availability. It is the basis of all offers and is the foundation for the contract. The purpose of the specification is to communicate the buyer’s requirements to potential suppliers and help the buyer to evaluate offers by providing a basis for comparability.