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Key Performance Indicators in Public Procurement Agencies - Thesis Proposal Example

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Eco-Friendly Key Performance Indicators in Public Procurement Research Thesis Proposal [27 February 2011] ECO-FRIENDLY KEY PERFORMANCE INDICATORS IN PUBLIC PROCUREMENT The fundamental purpose of procurement is to acquire appropriate utility?goods and services for various types of necessities…
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Key Performance Indicators in Public Procurement Agencies

Download file to see previous pages... Nowadays public procurement system is one of the highly sensitive financial issues. Until the end of nineteenth century procurement was mainly recognized as independent purchasing. No vivid difference is recorded before the First World War. Till then, it was regarded as a clerical purchasing part of the business in public and private sectors. The function of purchasing system increased between the two World Wars for obtaining raw materials, supplies and services. After the wars, refinement process of purchasing commenced sincerely. The introduction of public bodies and intergovernmental organizations like United Nations, it developed as a well-recognized science and management subject. The number of trained professionals in this sector increased with the managerial emphasis. By the end of eighties, more emphasis was laid down on various purchasing strategies. The Harvard Business Review published a ground-breaking essay written by Peter Kraljic in September 1983. Purchasing strategy is the main theme of this article. It is widely cited today as the inception of transformation of function from mere purchasing to strategic procurement. In addition to many plausible ideas, the author of the article offers pragmatic advice on how top management can recognize the extent of its own supply weakness and treat it with a comprehensive strategy to manage supply. He observes the threats of resource depletion and raw material scarcity, political turbulence and government intervention in supply markets, intensified competition, and accelerating technological change have ended the days of no surprises (Kraljic, 109). It began to be treated as something very much strategic to the business and became highly tactical. In present scenario, the public procurement system is one of the basic financial needs of government and corporate sectors. The procurement process ensures the acquisition at the best possible price to meet the needs of purchaser in terms of quality and quantity. Time and location of procurement are other major issues to be considered upon. Agencies, whether public sector or private corporation, promote fair and open competition to minimize deception and complicity. In Europe public procurement is an important sector of economy that accounts for 16.3% of the community GDP. The ever increasing environmental awareness appreciated green public procurement (GPP) scheme. The aim of GPP is to reduce the negative impacts of procurement on human health and nature at large. In this scheme, the contracting authorities take environmental issues into account while tendering for procurement. The European Union proposed political targets for member states for a better environment through the green public procurement process. In the United States of America, the procurement system is highly regulated. The government agencies may not simply purchase what they want from whomever they wish (Kelman, 3). The bureaucracy of the government plays major role in procurement process. Robert Merton in Social Theory and Social Structure, suggests that bureaucracies became rule bound from devotion to rules by the bureaucrats themselves. To be successful, a bureaucracy must obtain high level of reliability and must undertake routine activities methodically, these means to effective performance and become the goals of the organisation (Merton, 252). One of the most difficult things associated with the performance of public procurement ...Download file to see next pagesRead More
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