Wednesday, 28 May 2014

Fair Practices in Procurement Leads to Transparency and Efficiency

Authored by Usman Ghani

Open, Transparent and Fair environment is healthy for procurement system, and should be conducted in the same manner. Modern practices and principles enforce to underline unrestricted environment in procurement system. It is a broadly accepted principle of all time.

Transparency :

Can be defined as timely ,easily understood to the available information, it also protects the image of the process and the interest of the organization, Stakeholder and the public.

CFO’s of all organizations almost have the dream to reduce millions of money in costs, through different ways and to become the most attracted leader of there organizations in a shortcut ways few simple rules to be followed by the CFO’s to retain the attention in the procurement sector.

Fair Practice Rules:

Should be open to public for the examination of this procurement process.

Pre-Qualification of Vendors
Tendering criteria
Technical Envelops
Commercial Envelops
Evaluation Criteria
Awarding of Contracts

The mechanism to promote fair procurement system is to establish selection panels for the evaluation process.some organizations may use e-procurement technology which automatically evaluates the process which is the need of new modernization, procurement rules guarantying fair and non-discriminatory conditions of the entire competition.

The purpose of fair practices to retain trust in your customer and suppliers,your participants know that you follow principles and guideline for the best prices and quality of your business,it will also make relationship of buyer with supplier and reliable participants will ensure transparency in price and quality.
  
The key safeguard towards the corruption and help in the improvement of competition,procurement should provide access to the reliable information about the activities happened in procurement organization.

Transparency and Vendor Relationship:

Open and frequent communication between the vendor and procurement communities will make strong relationship in transparency.

Transparency and Procurement Professionals:

In transparency process code of ethics are very important for the procurement professionals there should not be any conflict of interest between the  both parties.

Transparency and Procurement Organization:

Accurate information and adequate resources must be provided to employees by the procurement organizations in order to achieve a sustainable transparent procurement process.

If you want to know more about Transparency and its classifications using the observatory stay tune with us and also know about all compulsory tools of strategic sourcing in our next blog.