Procurement is generally the process of goods or services acquisition by a client or customer. It basically entails the process of a company, government or state institutions, among others, acquiring goods and/or services they need for their operations.
Procurementaims at ensuring that there is transparency and fairness in the process of awarding tenders to suppliers and distributors of an institution's requirements.The procurement process ensures that goods required by an institution are supplied at the right time and at the best cost possible. It also ensures that the quality of the goods supplied is up to standards which satisfy the needs of experts.
The whole process of procurement is always aimed at avoiding loopholes for corruption and complaints from those working with the institution or those who greatly counts on its integrity. As such, the process entails defining conditions that the suppliers or distributors are supposed to meet in order to win the tender. It is therefore a process that involves and requires a lot of expertise to come up with these tendering conditions.
However, it should not be confused with tendering. Tendering is about issuing or publishing the conditions. Procurement on the other hand, is more comprehensive and entails establishing that the supplied goods or the delivered services are up to the necessary conditions and standards. This should be the standards and conditions as set by the experts. It also involves setting the prior conditions which comes before tendering.
All these activities involved in the procurement process are directed towards ensuring that a company promotes fairness and competition.
It should also be noted that companies and other institutions engages in procurement practice to ensure that they operate at cost effective levels. This implies that these companies strive to get the most output from what they input in their operations. Simply put, the companies want to get the best production materials or services while spending the least amount of money possible.
Therefore, when a company engages in procurement process it is striving to ensure that all possible loopholes which can lead to collusion by certain individuals in the institution to benefit themselves are sealed.
Procurement is usually of two types. There is direct procurement and indirect procurement. Direct procurement is mostly done by the manufacturing companies or industries. These are companies or industries which purchase raw materials to use in their production. These materials may also include parts which will form part of the final processed good for instance in the case of assembling industries.
Indirect procurementon the other hand entails acquiring of resources a company or institution will need in its operations. These could be items like office furniture or consultant services. Since procurement is a process that greatly aims at ensuring observance of integrity and fairness, it can be seen as an integral part of a company's corporate strategy. Indeed, by making the publics both internal and external see that the institution is determined in observing integrity, the company improves its image to these publics. This is crucial for the establishment of goodwill and mutual understanding between such publics and the company.
You will find a complete and informative site on the topics of information on State, Local and Federal Government contractsand Federal and State Procurement Contracts. We will feature informative articles on how to obtain procurement contracts from both state and federal agencies and how the procurement process works. There will be articles that will be of assistance on government procurement at all levels and resources and contacts to help you with your efforts in the arena of Government contracts and procurement and defense department contracts. We also feature a page on getting government jobs.