CHAPTER III

1. Why is there a need for Procurement Management System?

There are several reasons why a Procurement Management System is needed:

Cost Savings: Procurement Management System helps to streamline the procurement process,
leading to cost savings. By automating manual processes, procurement teams can save time and
reduce errors. The system also helps to identify areas where cost savings can be made, such as
negotiating better deals with suppliers.

Increased Efficiency: Procurement Management System allows procurement teams to manage

the entire procurement process in one place, from requisition to payment. This helps to increase
efficiency by eliminating the need for multiple systems and manual processes.

Improved Supplier Management: Procurement Management System allows procurement teams

to manage supplier relationships more effectively. The system provides visibility into supplier
performance, allowing procurement teams to identify areas where suppliers can improve and to
negotiate better deals.

Better Compliance: Procurement Management System helps to ensure that procurement

processes are compliant with company policies and regulations. The system provides a
centralized location for all procurement-related documentation, making it easier to track
compliance.

Enhanced Reporting: Procurement Management System provides real-time visibility into

procurement data, making it easier to generate reports and analytics. This helps procurement
teams to make informed decisions based on data insights.

Overall, Procurement Management System can help organizations to improve procurement

processes, reduce costs, and increase efficiency, ultimately leading to better supplier
relationships and improved business outcomes.
2. Discuss the five bases for classifying procurement methods.
i. Things Procured
ii. Bidders’Coverage
iii. Geographical Coverage
iv. Procurement Awareness
v. Procurement Steps

The five bases for classifying procurement methods are as follows:

i. Things Procured: This base classifies procurement methods based on the type of goods or
services being procured. For example, some procurement methods may be used to procure
construction materials, while others may be used to procure consulting services.
 ii. Bidders' Coverage: This base classifies procurement methods based on the number of bidders
that can participate in the procurement process. For example, some procurement methods may
be open to all bidders, while others may be limited to a select group of prequalified bidders.

iii. Geographical Coverage: This base classifies procurement methods based on the geographic
area where the procurement is taking place. For example, some procurement methods may be
used for local procurement, while others may be used for national or international procurement.

iv. Procurement Awareness: This base classifies procurement methods based on the level of
procurement awareness required by bidders. For example, some procurement methods may
require bidders to have a high level of understanding of the procurement process, while others
may be more accessible to bidders with limited procurement knowledge.

v. Procurement Steps: This base classifies procurement methods based on the number of steps
involved in the procurement process. For example, some procurement methods may involve a
simple one-step process, while others may involve multiple steps, such as prequalification,
technical evaluation, financial evaluation, and contract negotiation.

It's important to note that these bases are not mutually exclusive, and a single procurement
method may fall under multiple bases. For example, a procurement method that is used to
procure construction materials (i) from a select group of prequalified bidders (ii) for a local
project (iii) may require bidders to have a high level of procurement knowledge (iv) and involve
multiple steps (v)

3. What are the types and steps of pre-qualification process?

The pre-qualification process is a preliminary evaluation conducted by lenders, creditors, or
other service providers to determine if a potential borrower or client meets the minimum
requirements for a loan, credit, or other services. The pre-qualification process typically involves
the following types and steps:

Types of Pre-Qualification:

Pre-Qualification for Mortgages: Mortgage pre-qualification is an initial step in the home-buying

process. It helps borrowers determine how much they can afford to borrow and what type of
mortgage may be suitable for them.

Pre-Qualification for Credit Cards: Credit card pre-qualification allows potential cardholders to
check their eligibility for a credit card without affecting their credit score.
 Pre-Qualification for Personal Loans: Personal loan pre-qualification involves evaluating the
borrower's creditworthiness, income, and debt-to-income ratio to determine whether they are
eligible for a loan and at what interest rate.

Steps of Pre-Qualification:

Information Gathering: The first step in the pre-qualification process is to gather information
from the borrower or applicant. This typically involves completing an application form, which
includes personal information, income, employment status, and credit history.

Reviewing the Information: Once the information is received, the lender or creditor will review it
to determine if the borrower meets the minimum requirements for the loan or service. This
typically involves reviewing the credit report, income documents, and other relevant
information.

Determining Eligibility: Based on the information gathered and reviewed, the lender or creditor
will determine if the borrower is eligible for the loan or service. If the borrower meets the
minimum requirements, they will move on to the next step in the application process.

Providing Feedback: If the borrower is not eligible, the lender or creditor will provide feedback
and explain why they were not approved. If the borrower is eligible, the lender or creditor will
provide information on the loan or service, such as interest rates, terms, and fees.
4. What are advantages and disadvantages of pre-qualification?
Pre-qualification is a process that involves determining whether a potential borrower meets the
basic eligibility requirements for a loan or other financial product. Here are some of the
advantages and disadvantages of pre-qualification:

Advantages:

Helps to determine eligibility: Pre-qualification allows potential borrowers to determine if they

are eligible for a loan or financial product without having to go through a full application process.

Helps to estimate loan amount: Pre-qualification also helps borrowers to estimate the amount of
loan they may be able to qualify for, which can help them plan their finances.

Saves time: Pre-qualification can save borrowers time by helping them avoid applying for loans
or financial products that they are unlikely to be approved for.

Disadvantages:

Not a guarantee of approval: Pre-qualification is not a guarantee of approval for a loan or

financial product. It is only an initial screening process.
 Limited information: Pre-qualification is based on limited information, so it may not take into
account all of the factors that lenders consider when making lending decisions.

May affect credit score: Some pre-qualification processes involve a credit check, which can
temporarily lower a borrower's credit score.
5. What are the types and steps of post-qualification process?
The post-qualification process refers to the steps that occur after a qualification or degree has
been earned. The specific types and steps of the post-qualification process can vary depending
on the country, profession, and type of qualification. However, here are some general types and
steps that are common across many fields:

Types of post-qualification processes:

Certification: This is a process by which a person is recognized as having met specific standards
or criteria set by a professional organization or regulatory body.
Licensing: This is a process by which a person is granted legal permission to practice in a
particular profession or occupation, usually by a government agency or regulatory body.
Continuing Professional Development (CPD): This is an ongoing process of learning and skill
development that professionals engage in throughout their careers to maintain and improve
their knowledge and abilities.
Steps in the post-qualification process:

Apply for certification or licensing: This typically involves submitting an application, paying fees,
and providing documentation of education, training, and experience.
Pass an exam: Many certifications and licenses require passing a standardized test or exam to
demonstrate knowledge and competence in the field.
Complete any additional requirements: Some certifications or licenses may require additional
training, coursework, or apprenticeship programs to be completed before being granted.
Renew or maintain the certification or license: Many certifications and licenses require ongoing
education or professional development to maintain their validity, and may need to be renewed
periodically.
Advance to higher levels of certification or licensing: Many professions offer multiple levels of
certification or licensing, each with increasing requirements and responsibilities, allowing
professionals to advance their careers and expertise.
It's important to note that the post-qualification process can vary significantly depending on the
profession and country. It's always a good idea to research the specific requirements for your
chosen profession in your location to ensure you are following the correct process.
6. What are the advantages and disadvantages of post-qualification?
In the context of education or professional training, post-qualification processes refer to
additional certifications, training, or assessments that individuals pursue after completing their
initial qualification. Here are some potential advantages and disadvantages of post-qualification
processes:

Advantages:
Enhancing knowledge and skills: Post-qualification processes can help individuals to acquire
additional knowledge and skills that are relevant to their field of work, which can help them
become more competent in their jobs.

Increasing job opportunities: Additional qualifications and certifications can help individuals to
stand out in a crowded job market and increase their chances of being hired or promoted.

Demonstrating commitment to professional development: Pursuing post-qualification processes

demonstrates an individual's commitment to their profession and to their own professional
development, which can enhance their reputation and credibility among colleagues and
employers.

Meeting regulatory requirements: In some industries, certain post-qualification processes may

be required in order to maintain a professional license or meet regulatory requirements.

Disadvantages:

Time and financial commitment: Pursuing additional qualifications and certifications can be
time-consuming and costly, particularly if the individual is working full-time or has other
personal commitments.

Over-specialization: Focusing too much on a particular area of study or certification may limit an
individual's flexibility and ability to adapt to changes in the job market or industry.

Lack of job opportunities: In some cases, having too many post-qualification processes or
specializations may actually make it more difficult for an individual to find a job, particularly if
they are overqualified for the positions available.

Limited return on investment: Pursuing additional qualifications or certifications may not always
result in a significant increase in salary or job opportunities, particularly if the job market is
already saturated with qualified candidates.