Recap

MODULE NAME: PROCUREMENT AND PUBLIC PROCUREMENT

UNIT NAME: INTRODUCTION TO PROCUREMENT AND PUBLIC PROCUREMENT
In this unit, you have learnt that:
Procurement is a business management function. It manages the entire process of
acquisition of external resources or purchase, in an efficient and economical manner
Economical, efficient and quicker procurement:
Improves profitability
Captures large share of market
Reduces time from design to market
Improves customer satisfaction and competitive value
Enables better products and services, faster and customer friendly channels of
distribution and mass customisation
Public procurement refers to procurement of external resources needed by the
central government or state governments and the entities under their control.
Public procurement includes acquisitions of external resources using public funds. It
also uses any other source of funding, such as grants and gifts
The aims of procurement are the 5 Rs of procurement. They are:
Right quality
Right quantity
Right price
Right time and place
Right source
The following seven principles differentiate between public procurement and private
procurement.
Transparency
Responsiveness
Professionalism
Constitutional provision
Multiplicity
Public accountability
Transactions

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