Purchasing Procedures Manual

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Purchasing Procedures Manual

1. Introduction

1.1 Objectives of the Procedures Manual

The primary objective of this Purchasing Procedures Manual is to establish a comprehensive and standardized framework for procurement activities within the Emirates institution. This manual aims to:

• Enhance the efficiency and effectiveness of the procurement process
• Ensure compliance with applicable laws, regulations, and institutional policies

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• Promote transparency and accountability in procurement activities
• Streamline communication and coordination among various departments involved in the procurement process
• Foster ethical and responsible procurement practices

1.2 Keywords

• Procurement
• Purchasing
• Supplier
• Vendor
• Contract
• Order
• Requisition
• Negotiation
• Category management
• Supplier relationship management

1.3 Definitions List

• Procurement: The process of acquiring goods and services to meet the needs of an organization.
• Purchasing: The act of buying goods and services from an external source.
• Supplier: A company that provides goods or services to an organization.
• Vendor: A synonym for supplier.
• Contract: A legally binding agreement between two or more parties that outlines the terms and conditions of a transaction.
• Order: A formal request for goods or services from a supplier.
• Requisition: A document that initiates the procurement process and outlines the specific requirements for goods or services.
• Negotiation: The process of reaching an agreement between two or more parties on the terms and conditions of a transaction.
• Category management: The process of classifying and managing goods and services into strategic categories to improve procurement efficiency and effectiveness.
• Supplier relationship management: The process of establishing and maintaining positive relationships with suppliers to ensure a consistent supply of high-quality goods and services at competitive prices.

2. Introduction to the Purchasing Units

2.1 Roles and Responsibilities The procurement function within the Emirates institution is primarily managed by the Purchasing Department, which is responsible for overseeing the entire procurement process from requisition to payment. The Purchasing Department is staffed by experienced professionals with expertise in various aspects of procurement, including sourcing, negotiation, contract management, and supplier relationship management. In addition to the Purchasing Department, other departments within the institution may also play a role in the procurement process. For instance, the requisitioning department is responsible for initiating the procurement process by submitting requisitions for goods or services. The Finance Department is responsible for reviewing and approving purchase orders and ensuring timely payments to suppliers. 2.2 Purchasing Committee The Purchasing Committee is a body composed of representatives from various departments within the institution. The committee's primary role is to review and approve high-value procurement transactions and to provide guidance on procurement policies and procedures.

3. Procurement Channels

The Emirates institution utilizes various procurement channels to acquire goods and services, including:

• Open tenders: Open tenders are invitations to all qualified suppliers to submit bids for a specific requirement.
• Restricted tenders: Restricted tenders are invitations to a select group of pre-qualified suppliers to submit bids for a specific requirement.
• Direct procurement: Direct procurement involves purchasing goods or services from a single supplier without competition. This method is typically used for low-value items or when there is a sole source supplier.
• Electronic procurement: Electronic procurement involves using electronic platforms to manage the procurement process, including sourcing, bidding, and contract management.

4. Purchasing Process

The purchasing process within the Emirates institution follows a structured and standardized approach to ensure efficiency, transparency, and compliance. The process typically involves the following steps: 4.1 Purchasing Planning

• Identify and prioritize procurement needs
• Develop procurement plans based on identified needs
• Allocate budget for procurement activities

4.2 Category Management

• Classify goods and services into strategic categories
• Develop category strategies to optimize procurement outcomes
• Manage supplier relationships within each category

4.3 Source Identification

• Identify potential suppliers for each category of goods or services
• Conduct supplier research and evaluation
• Maintain a qualified supplier database

4.4 Negotiation

• Negotiate favorable terms and conditions with suppliers