Why is it important to engage in procurement?

10/02/2021
1128 | 0
Ilia Ilyin
Essay

I am a junior student of the Kyrgyz State Technical University named after I. I. Razzakov, I chose the direction of procurement logistics for a reason. First of all, I know a lot about Logistic, and second of all, this is a developing area in our country, which means that the country needs young qualified personnel.

So why procurement is so necessary? To answer this question, you first need to understand what procurement is. Procurement logistics is, first of all, a complex of operations aimed at supplying an enterprise with resources, the volume of finished products, and the movement of purchased material resources among divisions within the enterprise and between them. The main purpose of procurement logistics is to meet the needs of the company or production in products, materials with the highest possible economic efficiency. In simple words, business cannot exist without purchases. Why? Because any enterprise needs resources, be it semi-finished products for the production of hamburgers, or office supplies for a large company.

Any enterprise, both industrial and commercial, in which material flows are processed, has a service that purchases, delivers and temporarily stores objects of labor: raw materials, semi-finished products, etc. The main role is played by the choice of a supplier. You always need to look for the most profitable offers, evaluate and select. The choice is made taking into account all significant criteria - prices, delivery time, distance, additional service. It is impossible not to note such an important detail as the plan: What to buy? From whom to buy? Why buy? How to transport? Etc. The efficiency of work and the cost of services and goods also depend on how the organization of procurement logistics at the enterprise is arranged. This area of activity has an impact on profits, so it is one of the most important. In the end, procurement is an integral part of any business; if you want the business to bring money, take care of choosing a competent procurement specialist. When I have my own business, I will pay special attention to procurement!