Why Procurement needs to be Transparent in Public?
- August 16, 2019
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The process of purchasing raw materials or goods is called as procurement. This is not a simple task as large amount of money is involved which can lead to corruption on a wider scale. Therefore, in order to make sure procurement goes smoothly, everything needs to be transparent especially in public companies. Shareholders hold the money of the public and it is their responsibility to make sure the money is safe at all times. The government and other regulatory bodies are also responsible to keep an eye on the procurement.
Corrupt Practices and Solutions – In the past, there have been cases where people working in the procurement department usually give preference to certain selected suppliers and vendors. This way, other vendors or suppliers would not be even considered giving rise to corrupt practices. However, there is a solution now as many public companies offer invitations through advertisements for vendors and suppliers which can be seen by the public. This makes sure transparency is maintained to the public and no corrupt practices are followed. Vendors are welcomed through the bids where the vendor will then agree with the terms and conditions of the order.
In the past, there have been vendors who have charged price where the quality of the delivered products hasn’t been up to the mark. To stop this, contracts are now made to make sure everything is running fine. Even at the end, the procurer will make a final report based on the quality and quantity of the delivered products.
There’s no doubt that corruption was a big issue in the past however, times have changed thanks to the introduction of processes such as procurement. In order to learn more on procurement, consider going through a few procurement training seminars to improve your knowledge.