Nutshell: Economy, efficiency, effectiveness: understanding Value for Money | Changeboard (2022)

Responsible financial management means creating good Value for Money for our customers and our organisations. But what does that mean and how can we achieve it?

We usually find out at an early age the sad truth of Oscar Wilde’s quip that a cynic is “a man who knows the price of everything and the value of nothing.” When our pocket money runs out and we find ourselves with very little to show for it, we’ve learnt a valuable economic lesson: that, in the words of a more contemporary trader in bon mots, Warren Buffett, "Price is what you pay. Value is what you get.”

In strict economic terms, value is the measurement of the benefit an individual or a company gets from a product or service. It might be about the maximum amount of money that someone is willing to pay (the price) or the minimum amount we expend on producing that product or service in the first place (the cost). We say things like “That’s good value” when we perceive that we’re getting a good deal, perhaps even stealing a march over the person or organisation we’re transacting with.

In business terms, though, the idea of value has become more finessed, acknowledging that there are other factors at play when we look to secure and offer value for ourselves and others. The term Value for Money has even earned its own acronym: VfM.

Value for Money (VfM)

In these terms, Value for Money is just not about achieving the lowest price or cost. Rather, it’s about achieving the optimum combination of a number of factors - not just cost or price, but also things like quality and sustainability – to achieve defined outcomes. The UK’s Audit Office describes good value for money as “the optimal use of resources to achieve the intended outcomes”, with optimal expressed as “the most desirable possible given expressed or implied restrictions or constraints”.

It’s also often described in terms of the ‘three Es’: economy, efficiency and effectiveness:

Economy: obtaining the appropriate quantity and quality of resources at the lowest cost possible; optimising the resources (inputs) which an organisation uses (doing things cost-effectively)

Efficiency: maximising the output generated from units of resource used; optimising the process by which inputs are turned into outputs (doing things the right way)

Effectiveness: the extent to which objectives are met (doing the right things).

VfM asks us to look at the economy of how we use our resources to create inputs; the efficiency of how we translate those inputs into outputs and how effective those outputs are at driving outcomes.

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The concept doesn’t just apply to what we buy ourselves. It also applies to the products and services we deliver to our customers.

Achieving VfM in both areas not only helps our organisation to operate efficiently and effectively. It also plays a vital role in generating customer satisfaction and creating profitable and sustainable organisations.

Some organisations also have a statutory responsibility to achieve VfM, for example, public bodies – like schools or local government – who are publicly funded. It’s also become an important benchmark for charities and not-for-profit organisations who may not have the same commercial imperative as companies, but still need to maximise their outputs to create as much benefit as possible for their stakeholders.

VfM is also about a balance between the three Es. We need to keep those outcomes in mind, whatever our context, to guard against too much focus on economy or efficiency (or both) to the detriment of effectiveness. The primary aim is to achieve our objectives while doing so in an economic and efficient manner – but not if that means producing goods in a way that damages the environment, leaves little room for innovation or alienates customers.

So, when implemented well, Value for Money really is worth a lot.

  • It’s good to give…
    • Organisations that deliver value for money typically have a good reputation and stand out against their competitors.
  • …and great to receive
    • And we also stand to benefit when we receive good value for money from the people and things we manage.

By giving and receiving value for money, we can gain advantage in all sorts of areas. For example, we can use a VfM mindset to review a whole host of business transactions, including:

  • improving our operations with more efficient systems and procedures;
  • working with suppliers who provide us with high-quality materials and expertise at the right cost;
  • employing and supporting people who add value to our organisation and practices;
  • making efficient, but sustainable, use of our physical resources, like equipment in offices or shops or manufacturing plant in a factory or warehouse;
  • securing best value financial services like loans to support investment;
  • offering our customers well-designed products and services at a fair price.

Giving value for money to our customers

Customers rightly have a range of expectations when they interact and transact with us. And, if we do not satisfy those expectations, they can, in most cases, take their custom elsewhere.

VfM for customers certainly includes a financial aspect: in many markets, cost, price and competitiveness will be important drivers for the value the customer perceives. But most customers also see VfM as being something more significant than just cost or price; they want to feel that the whole experience of transacting with us has been of value, including:

The quality of the product or service
Does it meet the expectations or standards advertised in any promotional materials, customer charters, company policies or service agreements? We need to deliver on those outcomes.

Customer service
High quality interaction at every stage of the journey: before, during and after the transaction. We need to listen to customers and take their opinions into account.

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Ease of doing business
Customers want products that are easy to access and websites that are easy to navigate; for it to be easy to contact an organisation. We need to keep things simple and accessible.

Promises and problem-solving
Customers want organisations to do the things they say they’ll do, whether that’s deliver on time and as expected; to help resolve any problems and issues, and to have in place and implement complaints procedures. We need to be reliable and trustworthy.

It’s all these things together that complete the picture of good value for money. And that’s what causes customers to return and organisations to thrive.

In practical terms, we might consider factors like:

  • Product range: how does our offer match customer expectations; should we, for example, have budget and luxury as well as regular ranges?
  • Pricing: offering competitive prices and using strategies like grouping complementary products together as a lower-price bundle.
  • Special offers: percentage discounts or buy one get one free (BOGOF).
  • Delivery options: perhaps free standard delivery above a minimum spend.
  • Installation options: reasonable charges for installing appliances or systems.
  • Warranties: free or low-cost extended warranties on goods or services if faults or problems are discovered after the usual cover period.
  • Returns policies: fair rules on exchanges or refunds.
  • Additional value-added features: after sales service; memberships and privilege/loyalty cards.

Getting value for money from our suppliers: the economy factor

As leaders, we have to make decisions about how to obtain value for money when we’re acquiring resources from our suppliers. In larger organisations, that may mean working with a procurement department or specialist. In smaller organisations, it might be down to us. Either way, the principles are the same.

Physical resources need to be:

Of the right quality for their intended use
That is, fit for purpose. Cutting too many corners for economy can be disastrous in terms of outcome. Rubbish in; rubbish out, as they say.

Sustainable
From sources that can maintain the supply chain for future purchases. These days, for example, printed books generally carry a kitemark from the Forest Stewardship Council (FSC) to show that they are printed on paper from responsible sources.

Ethically and legally sourced
Fully compliant with our own policies and any best practice or legal requirements. For example, large companies in the UK have to comply with The Modern Slavery Act, reporting on how they prevent modern slavery in their operations and supply chains.

Wherever, possible, able to be reused, recycled or reconditioned
There’s economy to be had here, too.

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When working with suppliers, we become the customer and therefore have many of the same expectations. For example, we can expect to negotiate better processes and discounts; favourable delivery and installation options; bespoke warranties and aftercare service, and potentially other added-value benefits too.

For large-scale or high-priced goods and services, organisations might use a tender or bidding process, a structured process that invites suppliers to submit details of their offer for consideration against a set of criteria, often associated with factors that contribute to VfM, like price, quality and sustainability. Tender processes need to be fair and transparent, and we might also use them to reinforce our values. For example, we might expect potential service suppliers like law firms or accountants to reflect our community in terms of diversity.

In the end, though, a tender is a competition. The aim is to support VfM by choosing from a range of options to maximise our value criteria both in terms of economy and in line with our outcomes.

We also need to keep any ongoing supplier agreements under review. We should review costs, quality and service levels on a regular basis to make sure they stay in step with our changing needs and market conditions and still meet VfM criteria.

Delivering value for money through greater efficiency

We should also encourage our teams or departments to regularly review costs and operational activities, so we can be sure of achieving value for money by using our resources and energy as efficiently as possible.

Reducing costs

Monitoring and reviewing costs should be part of the ongoing budgeting processes and cycles. We should always ask ourselves if we really need to keep spending that money or whether it’s spent to best effect. Do we still need that consultant on retainer? Can we reduce our travel expenses? Are there other ways to keep in touch with our customers without printing expensive promotional materials?

Zero-based budgeting can be a useful tool to keep discretionary spending under review.

Using resources efficiently

There are many things we can do to improve the efficient use of resources. For example, when we consider delivery to customers, we might look to reduce the amount of packaging we use (loose rather than pre-packed vegetables and fruit in supermarkets); developing smart packaging (boxes that stay together with folds rather than glue) or discouraging the wasteful use of consumables (giving out napkins in a fast-food restaurant rather than having customers help themselves to handfuls they won’t use).

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When it comes to keeping down the operational costs of our own team or department, there are whole range of options to consider.

Reusing materials
Everything from using washable mugs rather than disposable cups to recycled packaging or reconditioned equipment.

Minimising scrap and waste
Training and monitoring production staff to help cut down on wasted materials; using emails or texts rather than paper memos

Reviewing and fine-tuning
Monitoring and adjusting procedures and systems to streamline them.

Using technology more effectively
For example, using video conferencing rather than travelling for meetings; installing smart meters or sophisticated tills to measure consumption and target production more efficiently; and investing in stock tracking systems to support Just-In-Time supply chain management.

Making the most of the people we have
People in organisation usually represent the single biggest cost to the business. We need to hire the right people with the right skills to do the right things, give them the right support and training and encourage them to continue to learn and grow. Managing and motivating our teams well reduces staff turnover and associated recruitment and training costs.

Being fully compliant
Work practices that support compliance will help to avoid unnecessary investigations, legal proceedings, fines, penalties, compensation and loss of reputation.

Using energy efficiently
There are a number of areas we can look at to improve the use of energy and deliver better value for money. These include:

  • Improving our buildings: with better insulation; by installing glazing with thermal qualities and/or solar panels; and by using efficient heating and air conditioning systems.
  • Using energy-efficient appliances and equipment: using heat pumps for heating and air conditioning; buying A-rated appliances, such as fridges; and using low-energy lighting where possible. We must also remember to switch off lights, office machines, air conditioning and heating when not in use.
  • Using low CO2 emission and electric vehicles: and planning routes and times of journeys to reduce mileage and time spent in traffic jams.
  • Using greener packaging: materials with a lower carbon footprint.
  • Encouraging home working: to reduce costs through having a smaller building, and by saving commuter time, expense and emissions.
  • Using telephone and videoconferencing: to hold virtual meetings, especially when participants are many miles apart.

An old English proverb tells us that “the worth of a thing is what it will bring”. This speaks to the heart of Value for Money, which asks us to manage our resources with economy and efficiency – but with the outcomes we want to achieve firmly in mind. It’s vital to remember that cheap is not the same as value for money. If a lawnmower only cuts corners it’s not going to make our lawn –or us –look good. And, as far as our stakeholder and customers are concerned, the grass may well look greener somewhere else.

Test your knowledge

  • Identify the three Es that make up Value for Money.
  • List three qualities you should look for in the physical resources we source from suppliers in order to achieve value for money
  • Give two examples of how you might achieve greater value for money for your organisation by either improving your use of resources or reducing costs

What does it mean for you?

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  • Reflect on any policies your organisation has to improve energy efficiency. What more might be done and how might you propose their adoption?

FAQs

What are the 4 E's in procurement? ›

These are economy, efficiency, effectiveness, and equity. Box 1 gives a description of the four E's.

What are the 3 E's in value for money? ›

Value for Money (VFM) is defined as the relationship between economy, efficiency and effectiveness ('3Es'). Achieving VFM means achieving a balance between all three: relatively low costs, high productivity, and valued outcomes.

How do you define economy efficiency and effectiveness? ›

Economy — Getting the right inputs at the lowest cost (or getting a good deal). Efficiency — Getting the most from the inputs (or getting a lot for the efforts). Effectiveness — Getting the expected results from the outputs (or doing the right things).

What is effectiveness in value for money? ›

Value for money therefore combines the achievement of economy (reducing the costs of inputs), efficiency (getting more output for the same or less input) and effectiveness (getting better at what universities set out to do).

What is the concept of value for money? ›

What is best value for money? Best value for money is defined as the most advantageous combination of cost, quality and sustainability to meet customer requirements. In this context: cost means consideration of the whole life cost.

Is value for money the same as cost effectiveness? ›

Value for money is a term used in different ways, including as a synonym for cost-effectiveness, and as systematic approach to considering these issues throughout planning and implementation, not only in evaluation.

What are the 5 P's in procurement? ›

Power, People, Processes, Planning, and Prevention are 5 of the most important factors to analyze when considering a major purchasing decision: The Five P's of a Major Purchase! Consider these factors carefully and you will be on your way to producing mail with your new investment in production capabilities.

What are the 3 key components in procurement? ›

Three Components of Procurement

Three key components work together to make the procurement process happen: people, process and paperwork.

What are the 4 values of money? ›

The 4 Es in Value for Money

In an attempt to provide a standard for defining and measuring value for money, 3 E's – economy, efficiency and effectiveness, were initially introduced and later a fourth E (equity).

What are the four values of money? ›

Money serves four basic functions: it is a unit of account, it's a store of value, it is a medium of exchange and finally, it is a standard of deferred payment.

What do the three Es stand for? ›

The three E's: A triple play of economics, efficiency, and environment | American Public Power Association.

What are the 3 E's in public administration? ›

... audits also often follow the 3 E economic, efficiency and effectiveness concepts that underlie performance audits.

What is economic efficiency in simple words? ›

What Is Economic Efficiency? Economic efficiency is when all goods and factors of production in an economy are distributed or allocated to their most valuable uses and waste is eliminated or minimized.

Why is value for money important? ›

Value for money is seen as an appropriate framework for measuring performance in not-for-profit organisations, because value for money reflects not only the cost of providing a service but also the benefits achieved by providing it.

What is an example of value for money? ›

The costs of making a purchase decision can be considered in value for money. For example, if you are shopping for socks and you find a pair with reasonable value for money, it may be irrational to spend 3 or 4 more hours looking for a pair with exceptional value for money if you also include the value of your time.

What are the factors that determine the value of money? ›

How is Currency Valued?
  • Currency value is determined by aggregate supply and demand.
  • Supply and demand are influenced by a number of factors, including interest rates, inflation, capital flow, and money supply.
  • The most common method to value currency is through exchange rates.
13 Jun 2021

What are 3 concepts you know about money? ›

There are a few money concepts everyone should know by the time they're 30 if they want to build wealth. Compound interest, bear market and bull market, and diversification are important terms for investors. Net worth, interest, and inflation are good for even non-investors.

What are the three functions of money? ›

To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.

How is the value of money for your life? ›

It helps us get some of life's intangibles — freedom or independence, the opportunity to make the most of our skills and talents, the ability to choose our own course in life, financial security. With money, much good can be done and much unnecessary suffering avoided or eliminated.

What are the 5 R's of supply chain management? ›

When items in the supply chain travel in reverse order, your organization has to figure out a way to handle those products. The five Rs of reverse logistics are returns, reselling, repairs, replacements, and recycling. The processes and solutions you apply to each of these can help your business improve its results.

What are 5 pillars of SCM? ›

The five pillars of supply chain resilience
  • Pillar 1 – Vulnerability. ...
  • Pillar 2 – Management Culture. ...
  • Pillar 3 – Procurement. ...
  • Pillar 4 – Operations. ...
  • Pillar 5 – Demand & Visibility.

What are the four 4 major components of supply? ›

Integration, operations, purchasing and distribution are the four elements of the supply chain that work together to establish a path to competition that is both cost-effective and competitive.

What are the 5 main categories of procurement sourcing functions? ›

Middle level – there are 5 procurement categories:
  • Administrative support.
  • Travel.
  • Professional services.
  • Insurance.
  • Information technology.
7 Oct 2022

What are the 4 main processes of project procurement management? ›

Once you're ready to procure goods from a vendor, project procurement management is broken down into four processes.
  • Plan Procurement Management. Procurements are first identified during the planning phase of the project. ...
  • Conduct Procurements. ...
  • Control Procurements. ...
  • Close Procurements.
22 May 2018

What are the 7 types of money? ›

In The Seven Money Types, Pastor Tommy Brown leads readers on a journey of personal discovery as he reveals the seven money types found in Scripture.
...
Brown walks readers through each of the seven money types:
  • Abraham Type.
  • Isaac Type.
  • Jacob Type.
  • Joseph Type.
  • Moses Type.
  • Aaron Type.
  • David Type.

What are the 5 categories of values? ›

Values can be classified as follows by their qualities; (1) individual values and social values, (2) natural values and artificial values, (3) physical values and mental values, (4) instrumental values and intrinsic values, (5) temporary values and permanent values, (6) exclusive values and universal values, (7) lower ...

What are 6 money functions? ›

The following points highlight the top six functions of money.
  • Function # 1. A Medium of Exchange: ...
  • Function # 2. A Measure of Value: ...
  • Function # 3. A Store of Value (Purchasing Power): ...
  • Function # 4. The Basis of Credit: ...
  • Function # 5. A Unit of Account: ...
  • Function # 6. A Standard of Postponed Payment:

What are the 7 characteristics of money? ›

List the key characteristics of money.
  • Durability.
  • Portability.
  • Divisibility.
  • Uniformity and Fungibility.
  • Limited supply.
  • Acceptability.

What backs the value of money? ›

While early currency derived its value from the content of precious metal inside of it, today's fiat money is backed entirely by social agreement and faith in the issuer. For traders, currencies are the units of account of various nation states, whose exchange rates fluctuate between one another.

What are the 3 E's of sustainability? ›

They are Environment, Economy and Social Equity. For an activity to be sustainable, each of these elements need to be addressed and balanced. This is perhaps what we first think of when we think of sustainability.

What are the 3 Ps or 3 Es in the context of sustainability? ›

The 3Ps of sustainability are a well-known and accepted business concept. The Ps refer to People, Planet, and Profit, also often referred to as the triple bottom line.

What are the three 3 E's in green practice for facilities? ›

Urban sustainability efforts have historically failed to advance all three E's of sustainability: environmental action, economic development, and equity.

What are the 3 keys to market efficiency? ›

Three common types of market efficiency are allocative, operational and informational. However, other kinds of market efficiency are also recognised. Arbitrage involves taking advantage of price similarities of financial instruments between 2 or more markets by trading to generate profits.

What are 3 ways we could increase our efficiency? ›

Working from home is less efficient
  • Set reasonable goals. Setting goals is critical to success. ...
  • Learn to say “No” Whether it's because we feel pressure from ourselves or those around us, we sometimes take on tasks that we don't need to. ...
  • Take breaks. ...
  • Create a routine you love. ...
  • Improve your environment. ...
  • Use all your time.

What are the three measures of efficiency? ›

You can measure efficiency by dividing total output by total input. There are a number of different types of efficiency, including economic efficiency, market efficiency, and operational efficiency.

What are the 4 basic economic questions? ›

Answer: The four basic problems of an economy, which arise from the central problem of scarcity of resources are:
  • What to produce?
  • How to produce?
  • For whom to produce?
  • What provisions (if any) are to be made for economic growth?

What are the 4 pillars of public administration? ›

Referred to as the pillars of public administration, economy, efficiency, effectiveness and equity have been raised as the 4 Es essential to the practice of public administration.

What are the 4 major sectors of macroeconomics? ›

There are four basic macroeconomic sectors of an economy, namely, household, business, government and foreign. These sectors reflect four key macroeconomic functions and are responsible for four expenditures on gross domestic product (GDP). Each sector has a unique role to play in macroeconomic activity.

What is a real world example of economic efficiency? ›

So, let's take a look at an example to help us explain economic efficiency. Suppose a clothing factory has several machines to help sew the clothing. The machines can produce enough clothing that when sold could result in $100, $75, and $50. In this example, the most efficient option is the one that results in $100.

What is economic efficiency theory? ›

What Is the Efficiency Principle? The efficiency principle is an economic tenet stating that any action achieves the greatest benefit to society when the marginal benefits from the allocation of resources are equivalent to its marginal social cost.

What is the main goal of economic efficiency? ›

Economic efficiency is a concept that focuses on maximizing the production and distribution of goods and services. Economic efficiency helps consumers and companies to reduce waste and make smart decisions.

What is the most important value of money? ›

Time value of money is important because it helps investors and people saving for retirement determine how to get the most out of their dollars. This concept is fundamental to financial literacy and applies to your savings, investments and purchasing power.

What are the three 3 sources of value for money? ›

Academic research shows that, over our lifecycle, we can generate income from three major sources: human capital, social capital and financial capital.

What are the two values of money? ›

The report argued that a single point agenda would resolve the conflict between managing the two values of money: domestic value measured by inflation, and external value determined by the exchange rate.

What are the 3 elements of time value of money? ›

The formula for computing the time value of money considers the amount of money, its future value, the amount it can earn, and the time frame. For savings accounts, the number of compounding periods is an important determinant as well.

What are the 3 characteristics of value? ›

The characteristics of values are:

(i) Values provide standards of competence and morality. (ii) Values are fewer in number than attitudes. (iii) Values transcend specific objects, situations or persons.

What are the 3 main values that uphold great ethics? ›

Adherence to the Golden Rule.
...
Recommended Core Ethical Values
  • Truthfulness;
  • Fairness; and.
  • Sincerity.

What are three features of values? ›

Characteristics of Values
  • Values are personal.
  • Our actions point to what we really value.
  • Our values give us our perception of the world.
  • Inconsistent behavior may indicate and absence of values.
  • Values change as experiences change.

What are the 4 properties of money? ›

In general, there are four main characteristics that money should fulfill: durability, divisibility, transportability, and inability to counterfeit.

What are the 4 factors of money? ›

Below, I touch upon four factors that I believe to be among the most important economic indicators anyone can follow by reading the news.
  • Interest Rates. The first factor contributing to the general strength or weakness of a currency is a country's interest rate. ...
  • Inflation. ...
  • Economic Growth. ...
  • Current Account Balance.
16 Feb 2022

What are the 5 components of all time value of money problems? ›

Time value of money works on the principle that money today is worth more than the same amount of money received in the future. There are 5 major components of time value – rates, time periods, present value, future value, and payments.

What are the 5 principles of financial literacy? ›

According to the US Financial Literacy and Education Commission, there are 5 principles of financial literacy.
...
Financial Education Brush up on the 5 pillars of financial literacy
  • Earn. Understand your pay and benefits to make the most out of what you earn. ...
  • Save and invest. ...
  • Protect. ...
  • Spend. ...
  • Borrow.
6 Apr 2022

What are the main components of money? ›

Components of money supply
  • Currency such as notes and coins with the people.
  • Demand deposits with the banks such as savings and current account.
  • Time deposit with the bank such as Fixed deposit and recurring deposit.

What are the 9 attributes of money? ›

The qualities of good money are:
  • General acceptability.
  • Portability.
  • Durability.
  • Divisibility.
  • Homogeneity.
  • Cognizability.
  • Stability.

What are the 3 types of money? ›

Economists differentiate among three different types of money: commodity money, fiat money, and bank money. Commodity money is a good whose value serves as the value of money. Gold coins are an example of commodity money.

What are 5 uses of money? ›

There are only really 5 things we can do with money. We can use it to live, we can give it, we can repay debt, we can pay taxes, or we can save/grow it. It's important to know how your money is being allocated among these categories because this will show us our priorities.

What is the principle of value for money? ›

Value for money requires that organisational systems are proportional to the capacity and need to manage results and/or deliver better outcomes and be calibrated to maximise efficiency. An ongoing commitment to business process reforms to eliminate inefficiencies and duplication will help achieve this.

What is the concept value for money? ›

What is best value for money? Best value for money is defined as the most advantageous combination of cost, quality and sustainability to meet customer requirements. In this context: cost means consideration of the whole life cost.

What are the methods of measuring the value of money? ›

How is Currency Valued?
  • Currency value is determined by aggregate supply and demand.
  • Supply and demand are influenced by a number of factors, including interest rates, inflation, capital flow, and money supply.
  • The most common method to value currency is through exchange rates.
13 Jun 2021

What is the importance of money in the economy? ›

Money is a medium of exchange; it allows people and businesses to obtain what they need to live and thrive. Bartering was one way that people exchanged goods for other goods before money was created. Like gold and other precious metals, money has worth because for most people it represents something valuable.

Is money the core of life? ›

For most people, the answer is a resounding no. In simple and obvious ways, we all need money for everything from fulfilling basic needs necessary for survival to making our wildest dreams come true. But making money should not be the one overarching goal in life, overshadowing everything else we have going on.

What are the 3 E's and explain? ›

The three E's—economy, ecology, and equity—provide a framework for libraries and their communities to explore and anticipate how the choices they make today affect tomorrow.

What is e-procurement examples? ›

Managing suppliers and catalogs, integrating purchase orders, e-invoicing, and e-payment are all examples of e-procurement operations.

What are the main variants of e-procurement? ›

variants of e-procurement
  • Web-enabled ERP (Electronic Resource Planning). ...
  • E-MRO (Maintenance, Repair and Operating). ...
  • E-Sourcing. ...
  • E-Tendering. ...
  • E-Reverse Auction. ...
  • E-Informing.

What are the 3 pillars of ESG? ›

A closer look at the three pillars
  • Its use of or dependence on fossil fuels.
  • Its use or management of water and other resources.
  • Pollution levels.

What are the 4 pillars of sustainability? ›

The term sustainability is broadly used to indicate programs, initiatives and actions aimed at the preservation of a particular resource. However, it actually refers to four distinct areas: human, social, economic and environmental – known as the four pillars of sustainability.

What are the 5 P's of sustainability? ›

The 5Ps of the SDGs: People, Planet, Prosperity, Peace and Partnership.

What are the 3 P's of sustainability? ›

The TBL dimensions are also commonly called the three Ps: people, planet and profits. We will refer to these as the 3Ps. Well before Elkington introduced the sustainability concept as "triple bottom line," environmentalists wrestled with measures of, and frameworks for, sustainability.

What are the three efficiency concepts? ›

This note examines three concepts of efficiency: technical, productive, and allocative.

What are three 3 E's of safety stands for? ›

The Ministry of Road Transport & Highways formed 4 separate working groups on 4 E's of Road Safety viz. (i) Education; (ii) Enforcement; (iii) Engineering (roads as well as vehicles); and (iv) Emergency care, as per the deliberations in the last meeting of the National Road Safety Council.

What are the 2 e-procurement tools? ›

E-sourcing tool is used to identify potential suppliers during the selection phase. E-tendering tool is used to send out tenders with procurement requirements, supply schedule, contracting terms, etc.

What is the difference between e-procurement and procurement? ›

Ans. Procurement refers to purchasing or hiring services or obtaining goods through E- platform. Under e-procurement goods or services are purchased/hired via web portal.

What are the 6 types of purchases? ›

Types of Purchases
  • Personal Purchases. The consumer purchases for the consumption of themselves, then they fall into this very important category class. ...
  • Mercantile Purchasing. Facilitated by middlemen for the intention of re-sale to meet others requirements. ...
  • Industrial Purchasing. ...
  • Institutionalized or government purchasing.

What are the 8 types of purchases? ›

Methods of Purchasing Materials (8 Methods)
  • Purchasing by Requirement: ...
  • Market Purchasing: ...
  • Speculative Purchasing: ...
  • Purchasing for Specific Future Period: ...
  • Contract Purchasing: ...
  • Scheduled Purchasing: ...
  • Group Purchasing of Small Items: ...
  • Co-operative Purchasing:

What are the classifications of purchasing? ›

The nature of purchasing activity permits effective use of the fictionalization concept. Purchasing work divides naturally into five distinct classifications, each of which encompasses a fairly wide range of activities.
...
  • Administrative: ADVERTISEMENTS: ...
  • Buying: ...
  • Expediting: ...
  • Special Staff Work: ...
  • Clerical:

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