Public Sector Organisations comprise all levels of government at all levels. They comprise state, county, territorial and municipal governments, central and local government agencies, colleges, universities and hospitals. Public Sector Organisations also comprise numerous private organisations which deal with the procurement and supply of goods, services and other human resources. The procurement functions of many public sector organisations are managed on a contract basis where they obtain goods and services directly from the customers.

There are several objectives that public sector organisations pursue. Some of these objectives are to enhance quality of production, reduce waste, save time and money. Many of these companies also produce by contract manufacturers who provide them with raw materials at favourable prices. These organisations use their production process, technology and skills to create high quality products and services that are in high demand. Some of the common products produced by contract manufacturers are medical devices, food and chemical preparation and food products, engineering equipment, food manufacturing and pharmaceuticals.

In order to produce high quality products, contract manufacturers often have to partner with large production plants. This leads to consolidation of production centres and associated costs. Most companies also have direct access to raw materials, skilled labour and highly trained machineries and technicians. These benefits are transferred to the end user, who can typically derive great cost savings and productivity improvements.

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