The public sector of a country plays a huge role in terms of responsibility and providing effective services for the well-being of the people. Procurement, supplier selection and purchasing process are three things that are of vital importance in service oriented organizations. As public requirements become more and more specific, it is the duty of the government and the appropriate departments to take action and provide solutions.
The Colombo municipal council’s procurement department provides all necessary requirements for better service. The procurement purchasing process contains mainly two types of requirements; annual requirements which are predictable and needed often, as well as specific item acquirement. Annual requirements can be handled using a contractual basis, where a yearly price is paid with less technical details. However, the second process is rather lengthy, having to provide the specified requirements and select the most suitable supplier for the item. Sollish and semanik (2007) provide guidelines stating that while selecting the supplier; it is not always needed to get the lowest price, but more importantly the best quality and best price.
As mentioned by Arrowsmith at el. (2000, p.2), “procurement” can be used to refer to an entire process of an acquisition, covering few main phases. Government procurement, in a general sense of making arrangements for the acquisition of public needs, can probably be identified in any country. This involves, creating specifications to explain the government’s needs to potential suppliers; deciding what type of award procedure to use, and successfully closing the deal. Finally, supervising performance to ensure that the promised goods and services are properly delivered, accepting performance, arranging for payment for contractor, dealing with disputes and various contractual matters.
Jayaraman et al (2006) mentions that Many organizations are looking to their suppliers to help them...