There are a number of ways in which you may find out there is a need to purchase some goods or services:
- a specific requirement is identified, in which case is it necessary to ensure that the need is genuine and cannot be satisfied in some other way. See Identification of need for goods and services for more information.
- a review of historical payments to a supplier, group of suppliers may suggest that there is a need to:
- investigate and formalise the procurement process with a view to obtaining improved terms and value for money. See Identify the appropriate competitive process for more information.
- consider the suitability of the area of expenditure for a co-ordinated procurement either within the institution itself, with other local institutions or at consortia or national level. See Commodity Arrangements for more information.
A risk assessment related to this stage of the procurement cycle is provided.