Procurement is the process undertaken to obtain the services, goods, works or commodities required by an organisation, including those that operate in the public sector. The importance of procurement lies in its significance to the provision of effective services. Strategic Level Procurement is important to top-level decision makers whether these be chief executives, finance and other main board directors, or politicians.
Effective procurement is vital for any organisation to minimise unnecessarily wasteful expenditure and to ensure value for money in its service delivery. Public sector operating costs/expenditure is dominated by staffing costs, the procurement of services and goods, and capital finance costs.