What are the 3Es in procurement and supply considered to measure?

The concept of the 3Es in procurement and supply refers to Economy, Efficiency, and Effectiveness, which are critical metrics used to assess the performance of procurement activities.

Economy involves obtaining the best value for money spent, ensuring that resources are acquired at the lowest possible cost without compromising quality. This principle emphasizes the importance of prudent financial management in procurement.

Efficiency relates to the optimal use of resources to achieve desired outputs. In procurement, this means that processes should be streamlined and waste minimized, leading to quicker delivery times and increased productivity.

Effectiveness measures how well procurement activities achieve their intended outcomes and objectives. It focuses on aligning procurement strategies with organizational goals and ensuring that the products or services procured meet the specific needs of the organization.

Understanding and applying the 3Es forms a foundational part of effective procurement and supply chain management, guiding professionals in decision-making and strategy development.