Public vs. private procurement
By their very nature public and private sector businesses are very different organisations operating to fulfil different objectives.
While public sector businesses are under a mandate to operate efficiently their primary objective is public good. Conversely private enterprises generally exist to generate a profit and return for shareholders.
Both public sector and private sector procurement professionals share similar demands, constraints and responsibilities such as proving value for money, being accountable for spending decisions and adherence to procurement and financial policies.
However there are several key distinctions procurement professionals identify between working in public and private enterprise which this article will explore.
- Agility
Procurement professionals working in the private sector often must be more agile and able to respond to change quickly.
- A focus on the bottom line
As private enterprises focus on generating profit, procurement professionals often are constrained by meeting cost reduction targets.
- Number of Stakeholders
Public sector procurement professionals have a larger group of stakeholders to report to including tax payers, members of parliament, clients and vendors.
- Bureaucracy
Working for a government organisation or public enterprise entails dealing with an increased level of red tape or rules which must be adhered to in order to complete a task. Procurement professionals working in the public sector have to place greater emphasis on following policy and acting transparently. As they are acting on behalf of the government they must be seen to be acting ethically.
Ready to start your job search? View and apply for our latest opportunities
Related content
View AllLogistics and supply chain managers are the air traffic controllers of the global market and can give a company the advantage it needs to surge ahead of its competition. If any part of the supply chain fails, then a business can find itself with a big problem.That's why good supply chain managers ar
Read MoreAre you considering a career in supply chain management? Whether you're curious about what a procurement manager does or want to know how to get into this field, understanding the role is important. From managing supplier contracts to negotiating deals, they play an essential part in a company’s sup
Read MoreA number of jobseekers consider embarking on a higher education course to enhance their employability; however it's important to research your chosen course and the job market thoroughly before you commit to investing your time and money. Here are some benefits of obtaining a CIPS qualification and
Read More