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The purchasing process is, at its most basic, as simple as conducting a transaction. Much in the same way a consumer might research and purchase the best Most scholars of purchasing and supply management (PSM) are familiar with some form of a purchasing process model (PPM). A PPM is the visual representation purchasing processes. 5 – 10% Material cost reduction/ savings by utilizing the created capacity for strategic activities. OUR BENEFITS. OPTIMIZATION OF. This section presents the purchasing process as a cycle consisting of six major stages: 1. Forecast and plan requirement 2. Need clarification (requisition) 3. STANDARDISED PROCUREMENT PROCEDURES. First Edition – January 2013. Ministry of Finance and Economic Development. Issued: ______A wide-ranging concept/function describing the activities and processes dealing with covering end-to- end strategies for sourcing, negotiation of contracts and 1.2 Identify who is involved in the purchasing process. A review of purchasing practices (acona.co.uk/reports/Buying+your+way+into+trouble.pdf).