From this standpoint, procurement should be considered as a strategic rather than a routine function for the specialized agency.

In reviewing the state of procurement services and practices in the United Nations system, the Inspector finds that the procurement function has evolved over the past ten years from a relatively obscure administrative activity to a financially high profile and high risk function.

E procurement, discussed in chapter V, is seen by virtually all the organizations as offering potential benefits for the modernization of the procurement function and bringing it to world class standards.

Viewed in terms of cost effectiveness, if not of common sense, the need to outsource the procurement function to a sister agency, especially under common services arrangements discussed further on in the report, would seem crucial where procurement is a tactical rather than a strategic function.

Table 2 suggests that the organization of the procurement function within the United Nations system is far from optimal.

a Excludes one P 3, one P 2 and three Security Service posts previously approved in the Security and Safety Service that were transferred to the new Department of Safety and Security as at 1 January 2005 in accordance with General Assembly resolution 59 276.

All uppercase

Purchase

I want to buy.

D. Procurement procedures . 80 81 22

Value (millions of United States dollars)

Procurement management

Procurement reform

Procurement

Procurement opportunities

Rationalization of procurement practices

Common procurement services

Electronic procurement methods

The General Assembly,

(Thousands of United States dollars)

D. Procurement procedures

Scope for local purchase

Number of purchase orders Expenditure

Development of procurement expertise

3. Method of procurement . 12 13 11

No. of purchase orders

In the concluding chapter, the Inspector discusses the ways and means by which the organizations could use the procurement function as a development tool in the recipient countries, using a two track approach.

Procurement constitutes a strategic function of the United Nations and its funds and programmes, which in 2002, together accounted for 85 per cent of total procurement expenditure of the organizations.

In the area of procurement and transportation, efforts will be geared towards the achievement of greater coordination in procurement activities.

Procurement and contract management

(a) Procurement and Logistics Services

Procurement training initiative

Procurement policy and procedures manuals

Distribution of procurement activities

Strategic deployment stocks

Purchase Album from Magnatune. com

From Magnatune. com

Downloading album from Magnatune. com

Procurement from developing countries

(e) Procurement from developing countries . 14

No. of purchase orders

(c) Purchase procurement administration

Headquarters procurement

No. of purchase orders raised

projects 2 560 017 1 444 803