10 Questions
What is the primary purpose of procurement as an organizational process?
To ensure the buyer receives goods, services, or works at the best possible price
What is government procurement also known as?
Public procurement
What do organizations with a corporate social responsibility perspective consider in their purchasing activity?
Wider societal and ethical considerations
What historical roots does formalized acquisition of goods and services have?
Military logistics
What do almost all purchasing decisions include factors such as?
Delivery and handling, marginal benefit, and fluctuations in the prices of goods
What percentage of global GDP did government procurement amount to in 2018?
12 percent
Why do laws of most countries regulate government procurement?
To prevent fraud, waste, and corruption
What do governments usually provide in terms of goods?
Public goods
Why is government procurement necessary?
To enable the provision of goods the government cannot produce
What is the Agreement on Government Procurement (GPA)?
A multilateral international treaty
Study Notes
Procurement Overview
- The primary purpose of procurement as an organizational process is to acquire goods, services, or works from an external source.
Government Procurement
- Government procurement is also known as public procurement.
- It is a significant aspect of the economy, amounting to around 12% of global GDP in 2018.
- Governments usually provide goods such as infrastructure, healthcare, and education.
Corporate Social Responsibility
- Organizations with a corporate social responsibility perspective consider factors such as environmental, social, and ethical implications in their purchasing activity.
Historical Roots
- Formalized acquisition of goods and services has historical roots in the ancient civilizations of Egypt, Greece, and Rome.
Purchasing Decisions
- Almost all purchasing decisions include factors such as quality, price, delivery, and service level.
Regulation
- Laws of most countries regulate government procurement to ensure transparency, accountability, and fair competition.
Government Procurement Necessity
- Government procurement is necessary to ensure public services and infrastructure are delivered efficiently and effectively.
Agreement on Government Procurement (GPA)
- The Agreement on Government Procurement (GPA) is a plurilateral agreement under the World Trade Organization (WTO) framework aimed at promoting transparency, competition, and openness in government procurement.
Test your knowledge of procurement with this quiz! Explore the process of sourcing and purchasing goods and services from external sources, including tendering and competitive bidding. Learn about government procurement practices and contractual obligations.
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