What is the first step in the purchasing process?

The first step in the purchasing process is the request for quotation. This step involves identifying the products or services needed and soliciting proposals from suppliers, often through formal documentation outlining specifications, quantities, and delivery requirements. The request for quotation is crucial as it sets the groundwork for understanding market prices, supplier capabilities, and the availability of necessary goods. This step enables the purchasing department to evaluate potential suppliers and make informed decisions based on quality, price, and delivery timelines.

Subsequent steps, such as negotiation, receiving goods, and issuing purchase orders, rely on the information gathered during the request for quotation stage, highlighting its foundational role in effective procurement practices.