Procurement is a means to satisfying business unit requirements, and establishing the business need is one of the key drivers of the entire process.

Start by clearly defining the need for the purchase and specify what is to be purchased.

Consider the range of procurement options available and the potential sources of supply. Poor identification of needs and suppliers may lead to incorrect goods or services being sought or offered, resulting in additional time, effort and cost.

Activities that can assist in establishing the business need include:

• Undertake research to identify purchase and potential suppliers.
• Identifiy/ agree the outcome and determine best purchasing option in terms of policy requirements, risk, cost and other management issues.
• Preliminary cost-benefit analysis.

Consider whether there is an opportunity to make the purchase from a local supplier. Regional Sourcing Policy promotes maximising local supplier participation.

Check if what you want to purchase is available from a Standing Offer Arrangement such as a State Purchase Contract. More information about existing contracts can be found by visiting the State Contract section of the this website.