To answer this question, first you need to understand what procurement is.
Pocurement 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).
Purchasing 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.
Public procurement is a system through which state-owned companies look for suppliers of goods, works and services. Moreover, these purchases can be of any scale - from the purchase of pushpins to the construction of stadiums. Why participate in public procurement?
Government procurement allows you to get a large and reliable customer who will pay for sure. It is also an opportunity to increase sales and expand the geography of trade. Rumor has it that only “insiders” manage to get government contracts, they say, “from the outside” it is not worth even trying. Don't believe this. If you produce a quality product or provide a qualified service, then there is every chance of getting a government order. And for this you do not need to spend money on advertising, but you will have to spend time and effort to figure out the details.
Procurement logistics is a complex of operations aimed at supplying an enterprise with resources, the volume of finished products, and the movement of purchased material resources among departments within the enterprise and between them. The main goal of procurement logistics is to meet the needs of the company (production) in products (materials) with the highest possible economic efficiency.
Procurement logistics tasks:
1) ensuring the procurement of material resources at the lowest prices and with the highest quality. By reducing the purchase prices of materials, you can significantly reduce the cost of production;
2) ensuring timely delivery of materials for production needs;
3) compliance with the terms of the procurement of raw materials and components;
4) determination of the optimal size of supplies;
5) compliance with the compliance of the number of supplies with the needs of production;
6) control over the quality of raw materials and components;
7) ensuring the storage of material resources (finished product) with minimal costs.
Having learned the full range of procurement, let's draw conclusions. In my opinion, procurement is the main driving force of any enterprise. The efficiency of work and services depends entirely on procurement logistics. And if you do not prioritize purchasing, your business will not go far, but on the contrary, it will slide into a crisis abyss. Therefore, if you want a thriving sustainable business, pay sufficient attention to procurement. Good luck in your endeavors.
