What is the first step in procurement?

The first step in procurement is often defined as understanding the needs for goods or services, which is typically conducted through an Initial Requirements Document (IRD). This document is crucial as it serves as a foundation for the procurement process, detailing what is required, the purpose of the procurement, and determining specifications that guide further actions. Crafting an IRD helps ensure that all stakeholders have a clear understanding of what is needed, which sets the stage for subsequent steps in procurement, such as vendor selection and cost analysis.

Initiating the process with an IRD effectively aligns the procurement strategy with organizational requirements, and any inaccuracies or omissions at this stage can lead to complications later on. Thus, the emphasis on the IRD as the first step underscores the importance of thorough planning and clarity in procurement procedures.