ADVANCE PROCUREMENT Meaning and
Definition
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Advance procurement refers to the process of acquiring goods, services, or works for future need or use. It involves initiating and completing the procurement process prior to the actual need or delivery date. The purpose of advance procurement is to ensure timely and uninterrupted availability of necessary items or services in the future.
Advance procurement commonly occurs when there are specific conditions or requirements that need to be met in advance. It allows organizations to plan ahead and mitigate risks associated with potential supply chain disruptions, delays, or fluctuations in market prices. By procuring items in advance, organizations can secure favorable terms, prices, and conditions, ultimately optimizing their procurement process.
In the public sector, advance procurement is often utilized by governments and public agencies to meet their long-term or future needs. It enables them to manage demand, reduce lead times, and maintain the provision of essential services. Additionally, advance procurement can play a crucial role in strategic planning and budgeting, as it allows organizations to accurately estimate and allocate funds for future procurement requirements.
Advance procurement processes typically involve activities such as market research, vendor selection, contract negotiation, and contract execution. These activities ensure that the procured goods, services, or works meet the required quality standards, specifications, and regulations. It is essential for organizations engaging in advance procurement to closely monitor market trends and developments to ensure they adapt their procurement strategies accordingly.
Overall, advance procurement is a proactive approach that enables organizations to effectively plan and acquire goods, services, or works in anticipation of future needs, ensuring uninterrupted operations and optimal utilization of resources.
Etymology of ADVANCE PROCUREMENT
The etymology of the phrase "advance procurement" can be broken down as follows:
1. Advance: The term "advance" comes from Middle English "avauncen" and Old French "avancier", both of which mean "move forward" or "progress". Its ultimate origin is from the Latin word "abante", meaning "in front of" or "forward". The word has been used since the 1400s to depict progress, improvement, or moving ahead in various contexts.
2. Procurement: The word "procurement" stems from Middle English "procurment", which refers to gaining or acquiring something. It is derived from the Latin word "procurare", meaning "to take care of" or "to manage". Over time, "procurement" has specifically come to be associated with the obtaining or purchasing of goods, services, or resources.
