Research and Development Are not separately counted. All related costs are included in either 1. (Operational costs) or 2. (Procurement and Construction).

For organizations with centralized procurement services, the low procurement volume per staff member and relatively high overhead costs can be attributed to the fragmentation of the procurement function at different duty stations so much so that organizations located together in New York, Geneva, Vienna or Copenhagen are still to begin sharing procurement overhead services and costs, for example through common service arrangements discussed later in this report.

The table displays two staffing efficiency measures, the average value procured in 2002 by each staff member (Professional and General Service combined) of an organization's procurement unit, and procurement staff costs as a percentage of procurement spending.

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.

There was widespread support for efforts that could be made to assist in measuring performance within an organization's procurement function as well as determining costs of procurement, thereby increasing efficiency and effectiveness.

In order to self finance its overhead costs as well as the inter agency services, it needs to win procurement contracts, given that upwards of 80 per cent of its income derives from procurement fees.

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.

62 63) As an intermediate stage to that goal, consolidation of the procurement overhead structures and costs of the funds and programmes based at Headquarters (para. 62)

Secondly, they can enhance the efficient allocation of resources (reducing the time required to conduct a procurement, and reducing the administrative costs of the traditional open tendering procedure).

As such, an optimal, cost effective configuration of procurement services would require the latter group of organizations to outsource as much as possible to the first group in order to further strengthen its core procurement competence, or to develop and share core competence facilities, especially for organizations based in the same area, with the benefit of sharing procurement staff costs.

Another reason may be the lack of an evaluation of the concrete beneficial impact of the results achieved so far by the Procurement Working Group at Headquarters, such as savings on head count and transaction costs, shorter process time cycles, integrated procurement assets, or more effective service contract management.

The emphasis as may be applicable on increased consolidation of procurement overhead costs and structures within the United Nations system, in order to enhance division of labour among its members, reduce duplication in the procurement of common user items, and maximize the use of organizational core competencies, including the lead agency concept (para.

The paper notes that thanks to e procurement prices can be reduced by 10 to 20 per cent due to increased competition and transaction costs may fall by 50 to 80 per cent.

Procurement

Procurement

Procurement

The resources for operational costs were being requested immediately in order to accommodate the procurement lead time for some equipment and to ensure that it was available once relocation of UNPOS to Somalia began.

Moreover, there are a number of one time costs still to be incurred and a need to take advanced procurement action in view of the long lead time necessary for a number of items.

5. Requests the Secretary General to make the fullest possible use of facilities and equipment at the United Nations Logistics Base at Brindisi, Italy, in order to minimize the costs of procurement for the Mission

At UNDP, procurement staff also receives training on legal aspects of procurement.

Procurement management

Government procurement

Procurement planning

Procurement reform

Procurement report

Procurement opportunities

The Committee notes that most of the operational costs are requested now in view of the lead procurement time required for some equipment and the need to ensure its availability once the relocation to Somalia begins.

Thanks to various efficiency measures, including the introduction of activity based costing and an e procurement platform, it reduced its staff strength by 25 per cent and slashed transaction costs as process automation replaced manual paperwork.

Thirdly, it should considerably facilitate procurement reform and the pooling of procurement services.

Reiterates its request to the Secretary General to make the fullest possible use of facilities and equipment at the United Nations Logistics Base at Brindisi, Italy, in order to minimize the costs of procurement for the Mission

Reiterates its request to the Secretary General to make the fullest possible use of facilities and equipment at the United Nations Logistics Base at Brindisi, Italy, in order to minimize the costs of procurement for the Operation

Reiterates its request to the Secretary General to make the fullest possible use of facilities and equipment at the United Nations Logistics Base at Brindisi, Italy, in order to minimize the costs of procurement for the Force

Reiterates its request to the Secretary General to make the fullest possible use of facilities and equipment at the United Nations Logistics Base at Brindisi, Italy, in order to minimize the costs of procurement for the Mission

Reiterates its request to the Secretary General to make the fullest possible use of facilities and equipment at the United Nations Logistics Base at Brindisi, Italy, in order to minimize the costs of procurement for the Mission

The Procurement Services should investigate ways in which the procurement plan can be enhanced as a tool in the management of the entire procurement process.

UNDP Inter Agency Procurement Services Office (IAPSO) already has an advanced e procurement platform.

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

The Procurement Goldmine

Public sector procurement

Overview of procurement

C. Procurement workshops

E. Procurement guidelines

Procurement and contracting

Procurement training initiative

Common procurement services