Eskom Procurement Book 2015

PRINCIPLES OF SUPPLY CHAIN AND PROCUREMENT MANAGEMENT

or partiality; whereas ‘objective’ implies a detachment that permits impersonal observation and judgment. Another important principle necessary to guarantee best value for money is integrity. This relates to a soundness of moral character, having a sense of honesty and truthfulness in regard to personal and organisational behaviour. It means adhering to commonly accepted moral and ethical principles; impartiality and incorruptibility; and avoiding any behaviour that may be construed as inappropriate. A fair process also requires transparency, which is defined as the process by which reliable, timely information about existing conditions, decisions and actions relating to organisational activities are made accessible, visible and understandable. Transparency means unimpeded visibility and openness in all transactions. It ensures that all information on procurement policies, procedures, opportunities and processes are clearly defined and made known simultaneously to all interested parties. Effective competition is best explained as a situation in which at least three independent contractors acting on their own (not in collusion) effectively compete for the same business opportunity and submit a responsive bid. Organisations attempt to foster effective competition in all procurement processes as a means of ensuring fairness, integrity, transparency and achieving best value for money. In a quasi-public organisation, competition is imperative and should be encouraged in order to obtain the best value for the money. This principle is based on the ultimate objective of procurement, which is to add value to the organisation and its clients in fulfilling their goals and objectives. Undertaking procurement in the interest of the organisation and its clients means carrying out procurement activities in the manner that best enables the organisation and its clients to reach the general and specific objectives of the project agreements, in compliance with applicable procurement procedures. By applying these principles in the procurement process, organisations ensure effective and purposeful implementation of their activities by avoiding a wastage of resources; producing the most appropriate solutions at all times; and addressing the needs of the organisation and its clients. For instance, the ultimate objective of a power utility such as Eskom could be the effective and efficient provision of electricity to all its clients. In such a case, the procurement objective, amongst others, would be to acquire the needed production supplies with precision and in time in order to satisfy its clients’ power needs.

1.4.3 EFFECTIVE COMPETITION

1.4.4 BEST INTERESTS OF THE ORGANISATION AND ITS CLIENTS

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