Global Best Practice - Developing a Procurement Policy Manual

Policy refers to a set of governing principles that establish general parameters that an organization will follow when carrying out its responsibilities. In procurement, a comprehensive policy manual should clearly define the authority and responsibility of procurement while establishing guidelines that the organization and procurement professionals will follow when carrying out their respective responsibilities. Because procurement is such a complex function that is guided by multiple policies and statutes, it's essential to have a comprehensive procurement policy manual that outlines all of the policies and applicable laws that procurement staff and stakeholders must follow. Without a detailed procurement policy manual, it is likely that procurement actions will become inconsistent and can therefore appear to be arbitrary and unfair. This practice outlines the purpose of a procurement policy and the sections that should be included, such as definitions, basic organizational concepts, source selection and contract formation, specifications, ethics/code of conduct, personnel and professional development, and special programs.