What is a procurement system, and what methods can be used to assess procurement systems?

Procurement system refers to the collection of procedures
and methods used in an organization for purchase of goods and services required by it.
It includes activities such as ascertaining the specifications and quantities of items
to be procured, authorization for procurement, identification and selection of sources
of supply or vendors, finalization of terms of procurement with the vendors, placement
of purchase orders, follow up for supply of items ordered, inspection and approval of
goods and services received against orders placed, and approval of payment for the
same.

The method for assessing procurement system will
consist of:

• Identifying and defining the
  objectives of procurement, the inputs used for meeting these objectives, and developing
  parameters of measurement of efficiency and effectiveness in terms of these objectives
  and input resources.


• Installing a system for collecting
  data on actual results obtained and resources used, analysing the data to determine the
  levels of performance in terms of the defined parameters of
  measurement.


• Making the analysed information available to
  the concerned persons by way of periodical reports, as well as special reports and
  on-line information, made available on
  demand.