Procurement in Sri Lanka
Preface
The Importance of Procurement in a Global Environment
Until recently, procurement was a necessary process in an organization, but did not receive much attention from the management. Now times have changed: These days, procurement departments in an entity are playing pivotal roles in the success of firms nevertheless it is a public body or a private body.
In this special report, it is discuss why the procurement function has risen to such prominence in this highly competitive global environment and how companies can add value to their share holders and society at large through a strategically procurement process…………………………….
What is Procurement Management……….
In very simple “Procurement Management” is the process of purchasing goods or services. This is very narrow idea, but in real sense procurement is something more than that. The term procurement emphasizing the catering for the requirements at corporate level, which need more time, effort and dedication than purchase.
Accordingly “Procurement Management” is the process by which companies purchases business inputs from most suitable vendors. Procurement process provides a wide scope for companies to negotiate price, terms of delivery and get the best quality resources which are best match with their requirements.
“Procurement Management” definition by Weele 2010-“It is favorable that, the goods/services are appropriate and that they are produced at the best possible cost to meet the needs of the purchaser in terms of quality, quantity, time and location.”
Need of standard procedure and separate department for procuring activities………
Smaller businesses do not use the term “procurement” in their purchasing activities and usually they do not have a separate department for procurement as they have smaller business operations. Small scale businesses usually do not follow any systematic procedure in acquiring goods like large scale companies do.
One reason for this is larger organizations
The Importance of Procurement in a Global Environment
Until recently, procurement was a necessary process in an organization, but did not receive much attention from the management. Now times have changed: These days, procurement departments in an entity are playing pivotal roles in the success of firms nevertheless it is a public body or a private body.
In this special report, it is discuss why the procurement function has risen to such prominence in this highly competitive global environment and how companies can add value to their share holders and society at large through a strategically procurement process…………………………….
What is Procurement Management……….
In very simple “Procurement Management” is the process of purchasing goods or services. This is very narrow idea, but in real sense procurement is something more than that. The term procurement emphasizing the catering for the requirements at corporate level, which need more time, effort and dedication than purchase.
Accordingly “Procurement Management” is the process by which companies purchases business inputs from most suitable vendors. Procurement process provides a wide scope for companies to negotiate price, terms of delivery and get the best quality resources which are best match with their requirements.
“Procurement Management” definition by Weele 2010-“It is favorable that, the goods/services are appropriate and that they are produced at the best possible cost to meet the needs of the purchaser in terms of quality, quantity, time and location.”
Need of standard procedure and separate department for procuring activities………
Smaller businesses do not use the term “procurement” in their purchasing activities and usually they do not have a separate department for procurement as they have smaller business operations. Small scale businesses usually do not follow any systematic procedure in acquiring goods like large scale companies do.
One reason for this is larger organizations