What are Principles Of Procurement?

What are Principles Of Procurement? 

The principles of procurement are guidelines that dictate how government agencies and organizations should go about procuring goods and services. The main goal of these principles is to ensure that the procurement process is fair, efficient, and cost-effective. There are a total of 10 principles of procurement, which we will explore in more detail below. Whether you’re new to the world of procurement or just looking for a refresher, this blog post is for you.

What is procurement?

Procurement is the process of acquiring goods or services. It includes the contracting and purchasing of goods and services, as well as the receipt and payment for those goods and services.

The procurement process begins with the identification of a need within an organization. This may be the result of normal operations, or it may be, Finally, the organization will pay for the goods or services received.

There are several principles that guide procurement activities. These principles include:

– Ensuring that procurements are fair, transparent, and competitive;

– Maximizing value for money;

– Ensuring that procurements are conducted in a manner that protects against corruption; and

– Complying with all applicable laws and regulations.

 

The different types of procurement

There are four main types of procurement:

1. Open Tender

Open tendering is the most commonly used type of procurement. It is a transparent and fair process, in which all potential suppliers are invited to submit a bid for the required goods or services.

2. Selective Tender

Selective tendering is used when there are only a limited number of potential suppliers who are able to provide the required goods or services.

3. Negotiated Procurement

Negotiated procurement is used when it is not possible to use open or selective tendering, for example because the required goods or services are unique or there is only one potential supplier.

 

4. Direct Procurement

Direct procurement is used when the buyer purchases goods or services directly from a supplier, without going through a tender process.

The principles of procurement

In order to understand the principles of procurement, one must first understand what procurement is. Procurement is the process of acquiring goods or services.

There are several principles that guide procurement:

1) Necessity: Organizations should only procure items that are necessary for them to function. Items that are not essential should be avoided as they can add unnecessary costs.

2) Value for Money: Organizations should focus on getting the most value for their money when procuring goods or services.

3) Competition: Competition among suppliers is important in ensuring that organizations get the best possible value for their money.

4) Transparency: Theprocurement process should be transparent so that all stakeholders can see how decisions are being made.

The benefits of procurement

There are many benefits that can be achieved tugh effective procurement.

When done correctly, procurement can be a powerful tool to help your organization save time and money. With the help of an experienced procurement professional, you can streamline your processes, get better prices from suppliers, and minimize risk.

The risks of procurement

Procurement is the process of acquiring goods or services. It typically involves purchasing goods or services from an external supplier, but can also include leasing, rental, and other types of acquisition.

There are many risks associated with procurement, such as:

– The risk of not receiving the goods or services that were ordered

– The risk of receiving defective or damaged goods

– The risk of delays in delivery

– The risk of overpaying for the goods or services

Conclusion

Principles of procurement are guidelines that help organizations ensure that their procurement processes are fair, efficient, and effective. By following these principles, organizations can improve their chances of getting the best possible value for their money when procuring goods and services. If you’re involved in procurement, it’s important to be familiar with these principles so that you can app