Public companies are companies run by the government. Hence, their way of functioning and practices are quite different from the private ones – case in point being the process of procurement. It is quite different from what it is elsewhere. Of course, it can be different from country to country. Here is how procurement is different in public limited companies.
All the figures involved in the procurement deals are open for the public to see. They are published in reports which are easily available. After all, this is public money and they have every right to know what is happening. The money is first approved and disbursed in a manner that is predefined.
Bidding & Tender
The contractors and vendors are selected through a bidding or tender request process. These are methods that ensure there is absolute transparency and there is no corruption. There are many criteria stated in the tender notices like price, quality, delivery dates, etc.
The vendors and contractors who are bidding or the ones who are finally selected have to pass a background check. This is quite an important step, and ensures that the contract is going to the right people and the public’s money is safe.
Since the government is involved, there can be a lot of delays owing to red tape in the form of procedures, permissions, and processes. But this is not necessarily a bad thing.
You can learn all about procurement in public companies and more when you take procurement training online.