Accordingly, the cost of procurement amounted to 1.9 per cent.

The Board reviewed the new procurement control procedures and the cost effectiveness of the procurement operation.

Fourth, the cost of purchasing raw materials for enterprises has increased.

Policy context 40 47 15 Mechanisms 48 72 17

6. The Secretary General recognizes that the main aim of procurement reform is to improve the efficiency and cost effectiveness of the procurement function.

Table 4. Benefits and beneficiaries of electronic government procurement 25

The Board had noted that such splitting up of requisitions and procurement should be avoided in the interest of a more cost effective procurement operation.

14. The Office agrees that proper planning of procurement actions will facilitate effective timely action and reduce the overall costs of procurement.

Furthermore, CEB members observe that the report does not contain a comparative analysis of cost efficiency in terms of the ratio of costs to output for example, the proportion of the cost of staff engaged in procurement to the total cost of the volume of procurement undertaken.

5. Requests the Secretary General, in the context of his next report on procurement reform, to evolve and provide the standards for measuring efficiency of procurement, taking into account the optimal duration of the procurement decision making process, the total workload in the Procurement Division and the cost efficiency of procurement, against which the performance should be measured

5. Requests the Secretary General, in the context of his next report on procurement reform, to evolve and provide the standards for measuring the efficiency of procurement, taking into account the optimal duration of the procurement decision making process, the total workload in the Procurement Division of the Secretariat and the cost efficiency of procurement, against which the performance should be measured

(b) Sixteen assets with an inventory value of 3 million were pending confirmation by the Headquarters Property Survey Board for disposal

(1) Except as otherwise provided by this chapter, a procuring entity engaging in procurement of goods or construction shall do so by means of tendering proceedings.

It would seem that IAPSO is at present the only organization in the procurement system to have successfully automated its entire procurement process.

Such practice undermines the basic principle of segregation of responsibilities between the requisitioning and procurement entities and may create an appearance of conflict of interest.

Chapter II focuses on the fundamental issue of the cost effectiveness of the organizations' procurement services.

UNDP supports such a procurement policy and has incorporated it into the Procurement Manual.

IAPWG should therefore arrange for the further development of its existing common procurement guidelines into a generic system wide policy and procedures manual to serve as a best practice model for the procurement community.

CEB members are of the view that this approach would have been more relevant and pragmatic for measuring the cost efficiency of procurement units, than analysing procurement per staff member.

(b) Limited capacity of the procurement section to complete the procurement process for communications, information technology and observation equipment

There is thus a semblance of coherence in IAPSO serving as secretariat to IAPWG.

Staffing efficiency is only one measure of the cost efficiency of procurement performance.

These measures are expected to increase the efficiency and cost effectiveness of procurement for all organizations.

UNOPS procurement office is in the same building with IAPSO in Copenhagen.

In the Board s view, procurement delays arose as a result of weak procurement planning at the global level.

In New Zealand, for example, heads of procuring entities are free to manage their departments' procurement operations.

The latter figure represents the full cost of capital items purchased in the period covered by the WBC Claim.

Objective The main objective of Procurement Services is to ensure efficient and cost effective procurement of goods and services required for carrying out of all UNIDO activities.

However the discussion also made clear that the terms of reference for possible preventive measures should be the life cycle cost of munitions, which include among others development and procurement costs as well as the storage and reliability testing costs.

This ratio is also an important factor in the decision on outsourcing of procurement to other organizations, given the likelihood that organizations with a higher ratio of staff cost to output would be interested in lowering their costs by outsourcing their procurement to more cost efficient organizations.

c) the acquisition of a category C firearm to the relevant Member State of the European Union, in which resides the person who acquired the firearm.

Accordingly, IAPSO's reform experience and results (as well as those of other organizations that have streamlined their procurement services in recent years, such as UNPD) should be shared in detailed and systematic fashion with other organizations at future meetings of IAPWG.

The Programme is divided into two components G.3.1 Procurement Services and G.3.2 Logistics Services.

However, effective 1 January 1996, the Purchase and Transportation Service was restructured and renamed the Procurement and Transportation Division.

(c) The European Union does to have a stated policy of preference or ineligibility concerning procurement among its members.

Procurement is arguably one of the organisation's critical activities.

Table 3 attempts to illustrate the cost effectiveness of the organizations' procurement services in 2002 by using the human resource factor, which in most cases represents over 95 per cent of the costs of procurement services or total procurement cost.

As assessed by the Inspector, IAPSO's internal reforms represent a valuable case study of how procurement services within the United Nations system can be successfully streamlined and made more cost effective in line with the objective of this report.

UNPD United Nations Procurement Division

See IAPSO procurement statistics at www.iapso.org.

CEB members note that electronic procurement is already being pursued by the organizations of the system in one form or another.

(d) The data on procurement expenditure displayed in the previous chapter clearly show wide differences in the distribution of procurement power among IAPWG membership, implying that the subject does not hold the same level of importance for all participants.

Some members of CEB are in favour of accelerating the implementation of IAWPG's training project, and that IAWPG and the Inter Agency Procurement Services Office (IAPSO) should join their efforts in the organization of training programmes on procurement for the benefit of the United Nations system as a whole, and in this process, draw upon best practices and the experiences of public and private sector procurement.

(c) Limiting procurement of local goods that were of a higher price and an inferior quality

Programme Component G.3.1 Procurement Services 96