What is procurement?

Procurement is the acquisition of the materials, supplies or services needed to successfully operate a business or complete a project. It involves the identification of certain needs and the subsequent implementation of a series of steps to successfully negotiate the delivery of the necessary goods or services and the corresponding payment in order to meet their requirements and achieve their objectives.

The importance of the procurement process is paramount and must be approached in a strategic manner. This stage of the project has a direct impact on the efficiency, as well as the possible savings made.

How is FF&E relevant to procurement?

FF&E is literally the furniture (F), fittings (F) and equipment (E) used in any project, but the FF&E service goes far above and beyond the products themselves finishing up in your space. It takes a talented hand to curate, source and deliver on the parts of design that bring it to life.

Procurement is the whole process of identifying, sourcing and managing the obtention of goods or services. The procurement process can vary widely depending on the project, the business or the individual. Procurement can look different depending on whether it's for a business, a group, or an individual, and which sector that's in - for design projects, it's essential.

Naturally, there is a need for FF&E procurement, most particularly in the design sector. The skills used in FF&E, the eye for what best fits or elevates a space, the ability to source it by knowing where to look and how to negotiate it's price within budget and it's delivery to suit the project timescale - these are the precise skills used in the procurement phase, which ties the two inexorably together.

What is the procurement stage within a full project cycle?

The procurement process is an ongoing cycle for many businesses, but in terms of design projects such as we undertake here, a single cycle of the procurement stage runs parallel to a project as each step runs its course in the appropriate time frame. The procurement process runs through seven fundamental steps.

What are the 7 Key stages of a procurement process?

Step 1: Identify Necessary Good and Services

This should recognise the needs of the whole project or business. It also offers an excellent opportunity to check in company-wide and use the overarching visibility to carry out cost analysis and make savings where appropriate.

Step 2: Identify and Evaluate a List of Suppliers

Research potential providers and assess the shortlist for price, quality, ethics, production capacity, warranty and customer service. This can involve a simple google search, or a more complex and in-depth process, depending on what's contextually appropriate.

Step 3: Negotiate a Contract with the Supplier

Explicitly state your needs and expectations and come to an agreement that covers pricing, delivery, timelines, and terms and conditions. This is what will determine when and why you're able to terminate the contract, should this be necessary, so be sure to make the terms agreeable.

Step 4: Raise Purchase Requisition and Release Purchase Order

The Purchase Requisition (PR) is a document that details a description of the goods/service, the pricing and quantity, the supplier information, and the approval workflow, to make it clear to all parties what is being transported, at what cost, and serves as a reminder of delivery expectations.

Once the PR is approved, the finance team sends the Purchase Order (PO) to the supplier, typically via email. It includes the reference number, agreed payment terms and any other key information.

Step 5: Receive Invoice and Complete Payment

The supplier will send an invoice based on the Purchase Order and you'll pay the amount you agreed in the contract. It's typical to either release the funds before or after delivery, depending on the individual agreement, and payment methods vary depending on the preferences of the client and the supplier.

Step 6: Receive and Audit the Delivery

Upon receipt of your goods, immediately verify that what you have received matches what was in your purchase order, and that the order doesn't include any damaged or missing products.

Step 7: Record keeping

Accurate and organised record keeping is essential. Log your audits and keep a chronological record of your invoices to avoid overspending or being caught short. These records can also be useful for any future dealings with those suppliers, or in the event of any issues.

Why is it important to have an FF&E specialist working on your procurement?

We've already spoken about the role of FF&E in the procurement phase and how it's an integral pillar of successful function. Expanding on this, the subsequent role of FF&E professionals and the benefits of their expertise and experience are a similar pillar to the FF&E sector.

It's a challenging sector to navigate, particularly in terms of regulations, as well as balancing multiple needs and requirements simultaneously across various parts of every project. The training, experience and connections of a specialist stand you in good stead to succeed and get the most out of any job. Naturally, when you have something in mind and you strive to bring it to life, you want the best from it, and that's why an FF&E expert's role is so integral, because they're the person that adds the touches that makes your vision a reality.

What Is the Procurement Stage?