liminfoProcurement Reference
Free reference guide: Procurement Reference
About Procurement Reference
The Procurement Reference is a structured, searchable guide to modern procurement practices. It covers the full procurement lifecycle from RFI (Request for Information) for market research, through RFP (Request for Proposal) and RFQ (Request for Quotation) processes, to contract award and supplier management. Each entry includes detailed workflow steps, evaluation criteria, and real-world templates that procurement professionals can reference immediately.
This reference organizes procurement knowledge into five core categories: Procurement Process (RFI/RFP/RFQ/reverse auction workflows), Supplier Evaluation (scorecards, financial analysis, site audit checklists), Contract & Legal (SLA frameworks, penalty clauses, Incoterms), Strategic Sourcing (Kraljic matrix, make-vs-buy analysis, single/dual/multi sourcing strategies), and Cost Analysis (TCO models, should-cost analysis, price breakdown structures).
Designed for procurement managers, supply chain analysts, and sourcing specialists, this tool provides instant access to frameworks like the Kraljic Portfolio Matrix for segmenting spend categories by supply risk and profit impact, TCO calculators that go beyond unit price to include logistics, quality, and overhead costs, and supplier evaluation methodologies compliant with ISO 9001 and ISO 14001 standards. All content runs entirely in your browser with no data sent to any server.
Key Features
- Complete RFI/RFP/RFQ process workflows with step-by-step templates and evaluation criteria
- Kraljic Portfolio Matrix framework for classifying spend into leverage, strategic, bottleneck, and non-critical categories
- Total Cost of Ownership (TCO) analysis models covering acquisition, logistics, quality, and disposal costs
- Supplier evaluation scorecards with weighted criteria for financial stability, quality certifications, and delivery performance
- Contract and legal reference including SLA structures, penalty/incentive clauses, and Incoterms 2020 terms
- Strategic sourcing frameworks covering make-vs-buy analysis, single vs. dual vs. multi sourcing strategies
- Should-cost analysis templates and price breakdown structures for negotiation preparation
- Searchable and filterable across all five categories with instant keyword lookup and dark mode support
Frequently Asked Questions
What is the difference between RFI, RFP, and RFQ?
An RFI (Request for Information) is a non-binding document used for market research to identify capable suppliers. An RFP (Request for Proposal) solicits detailed technical and commercial proposals from shortlisted suppliers. An RFQ (Request for Quotation) requests specific pricing for well-defined requirements. They typically follow in sequence: RFI to survey the market, RFP to evaluate solutions, and RFQ to finalize pricing.
How does the Kraljic Matrix help procurement strategy?
The Kraljic Matrix classifies purchased items into four quadrants based on supply risk (y-axis) and profit impact (x-axis): Non-Critical (low risk, low impact) for simplifying processes, Leverage (low risk, high impact) for maximizing buying power, Bottleneck (high risk, low impact) for securing supply, and Strategic (high risk, high impact) for building partnerships. This reference includes detailed strategies for each quadrant.
What does TCO (Total Cost of Ownership) include?
TCO goes beyond the purchase price to include all costs across the product lifecycle: acquisition costs (unit price, shipping, customs), operating costs (installation, training, maintenance), quality costs (inspection, defect rates, warranty claims), inventory costs (carrying, obsolescence), and disposal costs. This reference provides structured TCO calculation frameworks with example breakdowns.
How is supplier evaluation scoring structured?
The reference covers weighted scorecard methodologies with criteria across multiple dimensions: quality (certifications, defect PPM, audit results), delivery (on-time rate, lead time consistency), cost (price competitiveness, cost reduction initiatives), financial stability (credit rating, revenue trends), and technical capability (R&D investment, innovation track record). Each criterion is scored and weighted to produce a composite supplier rating.
What contract terms and SLA frameworks are covered?
The reference includes SLA (Service Level Agreement) structures with KPI definitions, measurement methods, and penalty/incentive mechanisms. It covers key contract clauses such as liability limitations, intellectual property rights, termination conditions, force majeure, and dispute resolution. Incoterms 2020 trade terms (EXW, FOB, CIF, DDP, etc.) are also detailed with risk transfer points.
What is should-cost analysis?
Should-cost analysis is a technique for estimating what a product or service should cost based on materials, labor, overhead, and margin analysis. This reference provides price breakdown structure (PBS) templates that help procurement teams prepare for negotiations by understanding the cost drivers behind supplier quotes, enabling data-driven pricing discussions.
Does this reference cover e-procurement and reverse auctions?
Yes, the reference includes entries on electronic procurement methods such as reverse auctions (where suppliers bid down in price), e-sourcing platforms, purchase order automation, and catalog management. Each method includes process flows, appropriate use cases, and best practices for implementation.
Is this reference suitable for public sector procurement?
While the reference focuses on general procurement best practices applicable to both private and public sectors, the frameworks for transparent evaluation, weighted scoring, and documented processes align well with public procurement compliance requirements. The RFI/RFP/RFQ templates follow internationally recognized standards.