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Procurement Audit Checklist

Improve the acquisition of goods and services by facilitating their organisation through digital technologies utilizing a Procurement Audit.

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Procurement Checklist Template

A procurement checklist is used to guarantee that internal methods are met to prevent delays or even rejection of procurement.

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Procurement Process Checklist

This procurement process checklist can be adjusted to review internal processes and guarantee that all procurement demands are met.

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What is a procurement audit?

The procurement process organises and supports the entire purchasing process. In trade, the procurement process includes purchasing up to goods receipt. The process starts with an identification of the demand with a subsequent budgeting, supplier selection up to goods receipt and final payment processing. The goal is to find the ideal supplier in terms of quality, reputation, duration and price.

In this article, we will briefly discuss this:

1. What a procurement audit involves?

2. Phases of a procurement process in 4 steps

3. Your procurement audit application & software

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What a procurement audit involves

Procurement processes can vary depending on the company's preferences and needs, but generally they include these 5 steps:

  1. Define Expectations - Try to specify what your company's requirements and expectations are

  2. Prepare the necessary documents - Before contacting a supplier, prepare documents on relevant data such as material, time and cost estimates, etc.

  3. Selecting the right supplier - Depending on your company's specific needs, pricing and other requirements, this process can be lengthy but is essential to the success of your business.

  4. Contract & Terms - Once a suitable supplier has been found, agree a contract with all the necessary terms and conditions.

  5. Documentation - Keep track of all records of the procurement & work process.

Phases of a procurement in 4 steps

1. Determination of needs

At the beginning of every procurement is the determination of the required goods, materials or services. For this purpose, an inventory analysis is carried out and this is compared with the current orders.
A distinction is made between three common demand groups:

  1. The primary demand stands for saleable goods
  2. Secondary requirements include raw materials
  3. The tertiary requirement includes auxiliary and operating materials

There are various options available for accurately determining the optimal order quantity. It can be ordered either by recipe per unit quantity or with the help of the stochastic method based on empirical values. Which method is used depends on the person in charge and the type of procurement.

2. Procurement Request

The procurement request includes the required goods defined in the needs analysis.

3. Substantive examination

It is essential that the request is checked for correctness. No inferior products should be ordered. If the application is flawless, the release of the order is done. Usually different people from various departments check the release.

4. Order

If the approval was successful, the order can be completed.

A digital app & software for e-procurement

A procurement checklist is a helpful tool to ensure a smooth procurement process that includes all relevant steps. Unexpected problems due to neglected aspects during the process can lead to extensive costs, legal issues, delays, etc.

All responsible persons can access the respective checklists at any time and from any location. If problems or time delays occur and corrective measures become necessary, they can be notified immediately from the app.

Other benefits of a digital solution for the procurement process:

  • Generate real-time data about internal processes. This makes quality and safety measurable, and you can use data to constantly optimize processes.

  • Using the super intuitive mobile app, you can perform on-site procurement with your teammates in a foolproof, time-saving manner.

  • Comprehensive analyses help you to identify inefficient areas in your company more quickly and thus to continuously improve your auditing and inspection processes.

  • Keep track of your procurement process at all times.

  • The very simple operation provides no margin for error for on-site staff. The app offers less complexity to document or fill out than complicated paper or Excel lists.

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