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HomeProcurementEffective Procurement and Key Performance Indicators

Effective Procurement and Key Performance Indicators

Procurement is the process of finding, agreeing terms and acquiring goods, services or works from an external source which ensures that buyer receives goods, services at the best possible price, when aspects such as quality, quantity, time, and location are compared. Procurement includes all purchasing functions that pertain to obtaining goods, works and services including description of requirements, selection, invitation of tenders, preparation and award of contract.

The difference between Procurement and Purchasing can be best illustrated by the organogram, as shown below.

Procurement and Purchasing
Picture extracted from SIPMM: https://sipmm.edu.sg/key-success-factors-for-an-effective-procurement-or-purchasing-process

Managing Procurement Cycle with 5Ps

When it comes to procuring goods and services at the best possible price, in the right quantity and quality, in the right place and from the right source, there are key essential factors that must be put in place to benefit from a good procurement management. And without these key essential factors in place, all your time and effort invested in making sure that every procurement project is a success will be wasted.

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Jasline Kong Hui Ling, DPSM
Jasline Kong Hui Ling, DPSM
Jasline Kong Hui Ling has substantive years of work experience in the Construction industry and is a senior purchaser in a well-established construction company that specialized in commercial and residential development projects. She is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Jasline completed the Diploma in Procurement and Supply Management (DPSM) course on September 2018 at SIPMM Institute.

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