Procurement Logistics

Procurement (supply) is the most important function of an industrial enterprise. Purchases are aimed at solving the problems of avoiding a shortage of raw materials, materials and components for the needs of production. The solution of such problems is possible due to the organization of effective work with suppliers, ensuring uninterrupted deliveries, a well-established system of acceptance and quality control.

Every industrial enterprise, at the stage of production, is forced to replenish its material and raw material base and always makes a choice between “produce yourself” or “buy from another manufacturer”. The solution of this issue determines the company’s development strategy and forms the subsequent tasks.

When an enterprise makes a choice in favor of “buy from another manufacturer”, a number of requirements are imposed on the purchasing department – to purchase the necessary goods at the most favorable price while meeting the quality requirements; to maintain an acceptable level of stocks necessary for production; to interact with reliable and trusted suppliers; to reduce the share of procurement costs.

The selection of suppliers is the first stage of the procurement process. The choice is made from the number of companies with which business relations are already established, or from among those who have not yet established themselves. The choice of a new supplier is always fraught with risk, such a supplier is expected to be more efficient in relation to the existing ones. To select a supplier, a rating assessment of their compliance with the necessary criteria is often used, such as the availability of their own production facilities, a stable financial position, an acceptable price, quality guarantees, location, and reputation in the industry.

The effectiveness of the procurement department is determined by three main indicators-time factor control (compliance with delivery deadlines), price factor control (deviations from the procurement budget), quality factor control (compliance of the supplied raw materials, materials and components with production requirements).

Selection of the supplier, control and analysis of the procurement process should be carried out in accordance with the goals and objectives of production.

Goods DDP offers the search for suppliers in foreign markets, participation in negotiations, the conclusion of foreign trade contracts for the supply of raw materials, materials and components, including under the” contract ” of the carrier.

You can use the service of finding a supplier, supply goods for production needs under the” contract ” of the carrier on any continent, as well as use additional services.