Principles Of Procurement

Procurement in practice

Procurement is a subject that has a wide variety of branch. Many areas need the knowledge of procurement in order to practice effectively or attain their maximum profit levels. Procurement helps in determining when and how one should conduct certain transactions in the business. Procurement principle s help to guide healthy relationship with other subjects and avoid many business mistakes that have a high probability of happening. Some of the main principles that procurements deal with include; f value for money, ethics, competition, transparency, and accountability. This principles help procurement to be effective thus help in making important decisions in organizations.

Value of money

The principle of value of money

Ethics is mainly concerned with moral principles. Ethical principle in procurement include transparency, confidentiality, integrity, and fairness. The conducts help organizations to deal with business transactions with the best moral and ensure that procurement is effective as a core subject. In procurement, the actions that can make someone to be unethical are practices like corruption, favors, illegal sourcing, extortion and coercion.

Competition

The principle of competition in procurement ensures that all the public markets run sufficiently for the benefit of all consumers keeping in mind transparency and equality among all the participants. The rule mainly affect the public bodies and the other organizations which might want to operate in the markets. In procurement, the principle affects areas like the change of materials, the low tenders and in house exception. If the principle is effectively implemented, it will ensure fair pricing of resources and high quality services and goods are available.

The principle of value of money ensures that incase of different kinds of procurement process alternatives, the best procurement process is the one selected. It will ensure that the investment used is the minimal possible cost in any procurement process. The principle of ethics will ensure that the important concepts of procurement like clarity, fairness and transparency are observed. It is common for parties to want to benefit and hide some information but through the principle of ethics, the public is assured that the procure process is honest. The third principle of procurement, completion, as indicated helps the government to facilitate effectiveness, good pricing and high quality services and products is what is involved in procurement