What is procurement?
Procurement is a procedure for obtaining goods, works or services, which consists in establishing the need for these goods, works and services, finding suppliers, concluding and enforcing an agreement for the supply of goods (performance of works or services).
Procurement of an enterprise is one of the most important processes carried out in doing business. It is the procurement process that ensures the effective functioning of today's enterprises, significantly affects their competitiveness, efficiency and sustainability.
In my opinion procurement is a very important link for any production or trade network. Enterprises buy materials, tools, finished goods. Each link in the chain buys goods from suppliers, increases their value, and then sells them to further consumers. Procurement Logistics is in charge of organizing all processes for obtaining material resources from suppliers.
To give an example, first a businessman decides that he will expand his production with a new product. Having studied the sales market, he comes to a conclusion, what volume of production will be profitable, and what requirements the new product should meet. The plan is given to production, which dictates to the procurement department what materials and how much to purchase.
Following an example, you can understand how important purchases are for any business, and without procurement logistics, the normal operation of almost any enterprise, including transport, is impossible. Logistics is a link between different producers and coordinators of their work. The scope of activities related to procurement implies all functions, the performance of which is necessary for the continuous supply of the company on a daily basis and in the long term.
To summarize, without procurement it is impossible to implement any business and procurement plays an important role not only in small businesses, but also in large enterprises.
