Procurement Process
Vendor selection, purchase order workflow, approval thresholds, contract management, asset tracking, and AI-assisted procurement optimisation.
Vendor Selection Criteria
All new vendors must be evaluated against the following criteria before being added to the Approved Vendor List (AVL). The AI vendor scoring model automates initial assessment.
| Criterion | Weight | Assessment Method |
|---|---|---|
| Technical capability & product fit | 25% | Product evaluation, POC, reference checks |
| Pricing & total cost of ownership | 20% | Competitive analysis, 3-year TCO model |
| Financial stability | 10% | D&B report, credit check, AI financial health score |
| Security & compliance posture | 15% | SOC2/ISO 27001 certification, security questionnaire |
| Support & SLA quality | 10% | SLA review, support channel assessment, reference calls |
| Australian data sovereignty | 10% | Data residency confirmation, Privacy Act compliance |
| Vendor strategic roadmap | 5% | Roadmap review, analyst reports (Gartner, Forrester) |
| Sustainability & diversity | 5% | ESG reporting, Supply Nation membership, Modern Slavery statement |
Approved Vendor List (AVL) Management
- All recurring purchases must be from AVL vendors. One-off purchases under $5K are exempt.
- New vendor requests are submitted via the ServiceNow procurement portal
- Evaluation completed by Procurement team within 10 business days
- Security review by CSIRT required for all vendors handling ASI or client data
- AVL is reviewed annually. Vendors with consistent poor performance are flagged for replacement.
- Preferred vendors receive priority for new requirements; competitive quotes still required above $25K
Purchase Order Process
StartPurchase Need Identified
Step 1Submit Purchase Request (ServiceNow)
Step 2Budget Validation (auto-check)
Step 3Approval (per thresholds below)
Step 4PO Generated & Sent to Vendor
Step 5Goods/Services Received & Verified
Step 6Three-Way Match (PO + Receipt + Invoice)
CompletePayment Processed
Approval Thresholds
| Amount (AUD, ex GST) | Approval Authority | Quotes Required | SLA |
|---|---|---|---|
| $0 – $5,000 | Line Manager | 1 quote (AVL vendor preferred) | Approved within 2 BD |
| $5,001 – $25,000 | Department Director | 2 competitive quotes | Approved within 3 BD |
| $25,001 – $100,000 | VP (Operations/Finance) | 3 competitive quotes + evaluation matrix | Approved within 5 BD |
| $100,001+ | CEO | Formal RFP process + board notification > $250K | Approved within 10 BD |
No Purchase Without PO: Vendors must not be engaged or orders placed without an approved Purchase Order number. Retrospective POs require VP approval and are tracked as a compliance metric. Target: < 2% of all POs.
Vendor Onboarding
New vendors complete the following before their first PO is issued:
- Vendor registration form completed (ABN, bank details, insurance certificates)
- Credit check and financial stability assessment
- Security questionnaire completed and reviewed by CSIRT (for data-handling vendors)
- Modern Slavery Act compliance statement received
- Privacy impact assessment (if vendor will access personal information)
- Master Purchasing Agreement (MPA) or vendor terms reviewed by Legal
- Vendor added to finance system (Xero) and procurement portal (ServiceNow)
- Primary contact details and escalation matrix documented
Contract Management
Contract Lifecycle
- Initiation: Contract need identified, terms negotiated with vendor
- Review: Legal review for all contracts > $25K or non-standard terms. Target: 5 BD turnaround.
- Execution: Signed via DocuSign. Original stored in Confluence (Contracts space).
- Active management: Track key dates (renewal, termination notice), SLA compliance, spend vs. budget
- Renewal/Termination: Review triggered 90 days before expiry. Renegotiate or issue termination notice per contract terms.
Contract Review Triggers
- 90 days before renewal/expiry date (automated alert from ServiceNow)
- Vendor security incident or data breach
- Significant change in vendor pricing (> 10% increase)
- Vendor acquisition, merger, or financial difficulty
- ASI strategic shift away from the vendor's technology
Invoice Processing
| Step | Action | Responsible | SLA |
|---|---|---|---|
| 1 | Invoice received (email: accounts@asiaisolutions.com.au) | Accounts Payable | Logged same day |
| 2 | Three-way match: PO number + goods receipt + invoice amount | Accounts Payable | Within 2 BD |
| 3 | Discrepancy resolution (if match fails) | Requester + AP | Within 5 BD |
| 4 | Coding and approval in Xero | Budget holder | Within 3 BD |
| 5 | Payment processing | Accounts Payable | Per payment terms (typically Net 30) |
Asset Tracking & Management
All hardware and software assets are tracked in the ServiceNow CMDB (Configuration Management Database).
Asset Categories
Hardware Assets
- Laptops and desktops (employee and client-owned)
- Servers (physical and virtual)
- Network equipment (switches, routers, firewalls, APs)
- Storage arrays and NAS devices
- Mobile devices and tablets
- Monitors, docking stations, peripherals
Software Assets
- Operating system licences
- SaaS subscriptions (per-user and enterprise)
- On-premises software licences
- Development tools and IDEs
- Security software licences
- Cloud service subscriptions (Azure, AWS, GCP)
Asset Lifecycle
- Procurement: Asset ordered via PO process, added to CMDB on receipt
- Deployment: Configured, assigned to user/location, asset tag applied
- Management: Regular audits (quarterly), warranty tracking, maintenance scheduling
- Redeployment: When a user leaves or upgrades, asset is wiped, reconfigured, and reassigned
- Disposal: Secure data destruction (NIST 800-88 compliant), e-waste recycling via certified provider, CMDB updated
AI-Assisted Procurement Optimisation
Our AI procurement assistant analyses spending patterns and vendor performance to provide actionable recommendations:
Spend Analytics
AI categorises all spending, identifies maverick spend (off-contract purchases), and highlights consolidation opportunities across departments.
Vendor Performance Scoring
Automated scoring of vendor delivery timeliness, quality issues, support responsiveness, and price competitiveness. Updated monthly.
License Optimisation
AI analyses software licence utilisation across the organisation and client environments, flagging unused licences and recommending downgrades or cancellations. Savings identified in FY25: $180K.
Renewal Forecasting
Predictive model forecasts upcoming renewal costs, flags contracts with above-market pricing, and recommends negotiation strategies based on market data.