What is typically the first step in the procurement process?

In the procurement process, the first step is typically the "Request for quote." Initiating procurement with a request for quote (RFQ) is crucial because it establishes the foundation for acquiring goods or services. The RFQ allows the organization to communicate its needs to suppliers and solicit pricing and terms for the expected purchases. By gathering multiple quotes, an organization can evaluate potential suppliers and make informed decisions based on cost, quality, and service.

This step is essential for ensuring competition among suppliers, which can lead to better pricing and terms. Following the RFQ, the procurement process would typically move to evaluating the quotes received, selecting suppliers, and moving forward with purchase orders. Other options, such as purchase orders, invoice generation, and product activity data analysis, occur at later stages in the procurement cycle and are contingent upon the initial request for quotes being fulfilled.