FAQ about Procurement - Base building Training on Procurement

Hello Friends Am a student of Supply chain Management and Logistics. Today we will discuss about what is Procurement and most FAQ- Frequently Asked Questions about Procurement. I hope this episode will be a base line for those who like to learn about this topic from bottom to top. Let see what we are going to learn in this part.

What is Public Procurement 

Public Procurement mean Procuring Products or services from Wholly or Partly out of the Public fund.

What is Procurement Audit

Review of total Procurement record under financial rules as well as PPRA Rules

·         What is Procurement

·         What Exactly is Procurement

·         What is a Job in Procurement

·         What does a procurement Person do

·         What is procurement Procedure

·         What is different between Procurement and Purchases

So let see step by step all these Question and answer. Let me say this will be really helpful for all of you because it will be simple easy and examples base tutorial on procurement.

What is Procurement?

“The Process of Procuring something is called Procurement”

“The Action of Obtaining or procuring something is called Procurement”

OR

“The Process of obtaining Goods and Services under a unique process is called Procurement”

Examples regarding Procurement:

1- Like a Department Procure Stationery during the Accounting Period

2- An Organization HR department hire some new employee to get services (Procuring Services)

What Exactly Procurement is?

The above definitions shows that procurement deals with the activity or activities by which your purchase some kind of goods and services with your negotiation and selection powers to procure the quality of products and services for an organization.

OR

Procurement exactly can be define as “How the Goods and Services are ordered"

What is a Job in Procurement?

A Person who do this kind of Job is may have designation like Procurement Clerk or Procurement Officer the basic skills he required are communication skills, Negotiations and good relation with suppliers to make and take schedule deliveries for his department.

The Procurement officer have to be fallowed a unique process of Procuring like he collect quotation form different supplier, make sure the quality of Products as well as the schedule deliveries is the part of his / her job

What does Procurement Person do?

Normally every organization have their procurement procedure / process and the officer or Procurement clerk have to follow the rules as define by the Organization. In different Countries there is a Procurement Regular Authority like in Pakistan. PPRA authority defines the Standard of Procurement rules. So the Person who does the job of Procurement fallowed the rules by Government authority as well as his Organization Standard defines in their policies.

What is difference between Procurement and Purchasing?

Normally people understand that procurement and Purchasing are the same but there is big difference between Procurement and Purchasing let see how Procurement is differ from Purchasing.

In purchasing we just go to market and get the Product or services with payments while Procurement is a particular process defined by any government regular authority or the Organization. In Procurement we have to follow the rules define for Procurement like a procurement officer have to design a list of Contractors , He make strategic planning and Negotiation with these contractors, In procurement the Procurement clerk and Officer have to get many sampling base order to select the final decision.

Conclusion is that purchasing is the process of how goods and services are order while procurement deals with the sourcing activities, Negotiation and strategic selection of goods and services that are usually of importance to an organization.