Creating and implementing an effective procurement process in your organization is essential for achieving organizational goals. An optimized procurement process can help you to secure the best suppliers at the best prices, improve operational efficiency and increase customer satisfaction. In this article, we'll explore the steps that you need to take to successfully implement a procurement process in your organization, and discuss our admittedly biased perspective on how FactWise can help your procurement organization achieve positive business outcomes. 

1. Establish clear procurement objectives to ensure smooth operation 

- Define criteria for supplier evaluation and desired outcome of each stage of procurement process. 

- Define timelines for each stage of procurement process and ensure stakeholder buy-in. 

2. Assess your organization's needs: Choose the FactWise subscription plan that best fits your requirements!  

- Identify the categories of goods and services required, volume and budget estimations, and any other specifications. 

- Identify key suppliers or requirements to discover new suppliers. 

- Consider long-term implications like sustainability, potential for cost savings, impact on community. 

3. Conduct an RFX: Create accurate RfX in <1min on FactWise and use our smart dashboards to always stay updated and maintain effective communication internally and externally 

- Create RfX event and invite vendors by providing all relevant information about the project, such as the scope of work, timeline, and budget as well as clear instructions on how suppliers should submit their proposals using templates. 

- Compare quotes or bids, ensure clear communication and coordination to maximize vendor participation. 

4. Conduct a supplier evaluation: Use FactWise RfX Analytics, Historical Analytics, Vendor Ratings to generate single or multi-vendor allocation strategies 

- Assess vendor track record including past performance, financial stability, quality of service and shortlist those capable of delivering on requirements with high-quality goods at competitive prices. 

- Consider service, responsiveness, reputation, awards, certifications.

- Review terms and conditions.

5. Negotiate terms and contracts: Use extensive analytics to make data-driven decisions, negotiate better, and stay true to your procurement objectives 

- Discuss pricing, payment terms, delivery schedules, service levels and all other relevant details. 

- Consider legal implications of contract, potential risks, and ensure they are addressed in the agreement. 

6. Streamline the ordering process: Customize complex goods receival and quality check workflows for your organization without contacting FactWise, and ensure accurate, on-time payments accounting for rejections in order tracking stages 

- Create an efficient system for placing orders, tracking progress, managing payment schedules. 

- Ensure all stakeholders always have the visibility required. 

7. Monitor contract performance 

- Regularly review contracts to ensure that all both parties are operating as per defined terms and potential problems are resolved proactively and efficiently. 

- Regularly review or update contracts to ensure that both parties stay aligned over time. 

8. Oversee supplier relationships: Use Vendor Analytics, Chat, Ratings, and smart dashboards to effectively communicate and keep all records updated 

- Maintain effective communication with suppliers, provide feedback, and work closely together to resolve issues. 

- Track supplier performance along key metrics like quality, on-time delivery, safety and environmental regulations. 

9. Ensure regulatory compliance 

- Ensure that contracts meet legal requirements, suppliers comply with health and safety regulations, purchases occur in accordance with the law. 

- Train employees in relevant regulations and ensure compliance internally via regular audits. 

10. Utilizing Technology Solutions: FactWise increases efficiency by up to 31% and cost savings by up to 25%

- Leverage technology to automate and streamline procurement processes to do with order management and supplier evaluation. 

- Revisit procurement objectives after low-value-add tasks have been minimized and your team is freed up to engage in more strategic functions.