Wednesday, August 15, 2012

Suggestions to improve the procurement process

1 comment:

Anonymous said...

No matter how many changes you make to the procurement process, the approving persons must carryout his/her duty to ensure Zero Abuse. That is why there are such thing like approving cap e.g. below $10k need how many signatures or below $20k need director signature and above this need CEO signature. Approving persons will ensure the procurement officers will do his part in ensuring value for money for the organization. The approving persons must be able to recognize abuse or questionable purchase e.g.

a) $272,000 for 472 chairs. 1 chair = $576. Is this ok?

b) $57,200 for 26 bicycles. 1 bicycle = $2,200. Is this ok?

The problem is that if the approving person is a rich person e.g. $800,000, salaried-paid-taxpayer, Minister, then the above may not work as all purchases to him is "cheap, cheap, so cheap". But for a HDB person like me who owned a $280 second-hand vito chair [original price is $1,200 ten years ago] and a $68 foldable bicycle from Giant, Npark and MOM is overspending...

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