Procurement is a form of placing an order for the supply of goods and services. The essence of the purchasing process is the exact opposite of the sales process.
As a first-year student of Logistics, I believe that procurement is one of the most important business processes and any person who thinks how to make money and decides to open his own business in the field of trade needs to carry it out.
Let me explain why:
Procurement is an important link in any production or trading network. Enterprises buy materials, tools, final goods. Each link in the chain buys goods from suppliers, increases their value, and then sells them to further consumers.
Procurement at any enterprise allows to: expanding the range of products, reducing resource costs.
Participation in procurement is a good "tool" for increasing sales and expanding the market for your goods, works or services. Also, purchases give an impetus to small businesses and the opportunity to make a profit for further development.
Procurement is needed to meet the needs of our state with you in various goods, works and services. The range of these needs is truly enormous, from paper clips to large industrial facilities. Such procurement have a positive effect both on the development of the state itself and on the development of business in general. The state, represented by state and municipal customers, receives the goods (work or service) it needs on the most favorable terms, and the supplier receives money.
Speaking about public procurement, one can single out such a big positive moment as saving the state budget when purchasing a large batch of goods, which allows suppliers to make large wholesale sales. Another positive point is that in the implementation of centralized public procurement there is the possibility of more detailed state and public control. When carrying out public procurement, monitoring and audit can be applied to the activities of authorized bodies.
In summary, the purpose of procurement is to ensure the company has a reliable supply of materials.
Based on this, the procurement tasks are as follows:
- creation of a reliable and continuous material flow to the company;
- close interaction with the departments using these materials, studying their requests;
- search for suitable suppliers, close interaction with them and the formation of beneficial relationships;
- purchase of the necessary materials of acceptable quality, and the right quantity, and a guarantee of their delivery at the right time and place;
- ensuring reasonable prices and delivery terms;
- pursuing a suitable policy of stocks and investments in them;
- fast movement of materials through supply chains, forwarding deliveries if necessary, monitoring current conditions, including price changes, shortages, new products, etc.
From my point of view, the importance of procurement cannot be overestimated, and purchases play an important role not only in enterprises, but also in the whole state.
