In order to assess the effectiveness of the supply department, it is necessary to carry out an initial or overview analysis of the activities. Such an analysis can be carried out by considering such aspects as: receiving applications for material and technical assets, analyzing and processing applications, communication and settlements with suppliers, as well as control over delivery at all stages of the journey and fulfillment of contractual deadlines.

In order for the supply process to be carried out efficiently and with the least expenditure of money and time, it is possible, or rather advisable, to use specialized software products developed individually for the enterprise, depending on its specialization.

The logical scheme of efficiency is simple: simplifying the process of monitoring the procurement and supply of material and technical equipment in real time, that is, reducing the time spent on this operation, significantly speeds up the entire supply process. Less time is spent on filling out applications > less time is spent on processing them and communicating with suppliers > the procurement process (settlement process) with suppliers is accelerated > minimizing delivery times for material and technical assets.

The activities of the enterprise supply service are analyzed based on the following criteria:

optimal placement and timely execution of general and direct purchase orders;

compliance with established cost estimates;

availability of procurement plans and the quality of their preparation;

effectiveness of negotiations with suppliers;

applied methods for assessing, ranking and selecting suppliers;

quality of information systems used by the procurement service.

Features of the organizational activities of the supply service from the point of view of the possibility of effective management, in accordance with the concept of logistics, should traditionally answer such questions as:

What to buy?

How much should I buy?

Who to buy from?

On what terms?

Logistics also adds its own tasks to the main issues:

How to systematically link procurement with production and sales?

How to systematically link the activities of an enterprise with the activities of suppliers?

In addition, it is necessary to perform the following work:

enter into a contract;

monitor the execution of the contract;

arrange delivery;

organize storage.

What, how much and from whom to purchase are complex tasks by their nature. In Russia, their solution is complicated by the fact that in the recent past, enterprises often did not solve these problems in full at all.

When organizing production supply management, it is first necessary to determine the functions of the supply department. The supply of enterprises with raw materials, basic and auxiliary materials, and other types of material and technical resources is carried out by logistics departments. Their functions include:

Planning the enterprise's needs for material and technical resources necessary for the functioning of main and auxiliary production, as well as for operational and capital construction.

Drawing up requests and specifications for the required material and technical resources and submitting them to the logistics departments and planning departments of higher authorities.

Carrying out all operational activities to implement supply plans (concluding contracts, obtaining material resources in accordance with allocated funds and under agreements with suppliers, etc.).

Acceptance, placement, storage, preparation for release and release of material and technical resources to workshops and services of the enterprise.

Establishing, together with the economic planning, technical and financial departments of the enterprise, reasonable differentiated standards for inventories of material and technical resources and communicating these standards to warehouse workers; regulation of stock sizes and monitoring their condition.

Participation in the development of organizational and technical resources, replacement of scarce raw materials and materials with less scarce ones.

Organization of control over the expenditure of material and technical resources by workshops and services for their intended purpose.

Maintaining operational records of receipts of material and technical resources to the enterprise, their release to workshops and services, and the state of inventories.

At most enterprises, the supply service is represented by the logistics department (MTS). Management of material and technical supplies at the enterprise is entrusted to the deputy director. Subordinate to him is the logistics department, which ensures the coordination of the actions of all departments, employees and officials of the organization in solving the following supply tasks:

analysis and determination of needs, calculation of the quantity of ordered resources;

determination of methods and forms of supply;

selection of suppliers of material resources;

negotiating prices for resources and concluding contracts with suppliers;

organization of quality control, quantity and timing of supplies of resources;

organizing the placement of resources in enterprise warehouses.

The most commonly used methods and forms of supply:

Purchase of goods (material resources) in one batch. Involves the supply of goods in one batch at a time (wholesale purchases at commodity exchanges, competitions, auctions, from suppliers, etc.). Advantages: ease of paperwork, guaranteed delivery of the entire batch, increased trade discounts. Disadvantages: large need for warehouse space, slower capital turnover. Regular purchases in small quantities. In this case, the buyer orders the required quantity of goods, which is supplied to him in batches over a certain period. Main advantages: capital turnover is accelerated, since goods are paid for as individual shipments are received; Savings in storage space and costs for maintaining excess inventory are achieved. Disadvantages: likelihood of ordering excess quantities of goods; the need to pay for the entire quantity of goods. Daily (monthly) purchases according to quotation sheets. Used to purchase cheap and quickly used goods. Advantages: acceleration of capital turnover; reduction of warehousing and storage costs; timeliness of deliveries. Receive goods as needed. This method is similar to regular delivery of goods, but has the following features:

the quantity of goods is not strictly established, but is determined approximately;

suppliers contact the buyer before fulfilling each order;

Only the quantity of goods delivered is paid for;

at the end of the contract, the customer is not obliged to accept and pay for the goods expected to be delivered.

Advantages: no firm commitment to purchase a certain amount of goods; acceleration of capital turnover, minimum paperwork.

The starting point in purchasing activities is to determine the need for a particular product (material resources or finished products).

The process of acquiring materials includes a number of logically interrelated types of work. The following stages of the materials acquisition process are distinguished:

preparation of applications;

analysis of applications;

selection of suppliers;

placing orders;

control over the fulfillment of orders;

completion of the acquisition process.

The high speed of market changes, declining profitability and significant increases in costs, sometimes reaching 70% of total revenue, make the supply sector critical to successful competition, if not simply survival, in the international market. The corresponding question arises: how to spend less time and money on organizing supplies?

To address this challenge, forward-thinking companies are striving to integrate all supply chain activities from supplier selection to purchasing into a single cycle, transforming it from a disjointed service function into a strategic one. This approach provides complete transparency across the entire procurement process, from identifying cost-cutting opportunities to delivering real cost savings.

Automation of operations makes it possible to optimize the procurement process of all necessary goods and services, eliminate manual tasks and reduce the number of erroneous purchases. With easy, personalized access to key information, procurement teams can also make decisions and take action faster.

The operation of any enterprise depends on the availability of raw materials, goods and services supplied to it by other organizations. Even the smallest office requires space, heat, light, communications and office equipment, furniture and various other items to perform its functions. No organization, enterprise, or institution is self-sufficient.

Purchasing management is the area of ​​activity through which a firm acquires needed goods and services. The purchasing process is the organized acquisition of products for further processing or resale. The products purchased for industrial enterprises are mainly material resources necessary for production, and for trading companies - finished products for subsequent sale.

Activities for organizing and managing procurement are aimed at meeting the needs of the enterprise for raw materials, supplies, goods and services. The task of the enterprise supply service is to organize the company’s receipt of the necessary quality and quantity of raw materials, materials, goods and services at the right time, in the right place, from a reliable supplier who fulfills its obligations in a timely manner, with good service (both before and after the sale ) and at a favorable price.

Activities for organizing and managing procurement can be considered in two aspects - operational And strategic.

Operational supply– regular operations aimed at avoiding shortages, lack of material resources or finished products. The absence of a product of the required quantity and quality, its untimely delivery can create a problem for the end consumer of the product or service and lead to increased costs.

Strategic side of supply– the actual procurement management process itself, interaction with external suppliers in accordance with the needs and requests of the end consumer, planning and development of purchasing schemes and methods. The concept of supply management refers to planning and control over all incoming material flow (material resources and finished products) entering the company.

The supply of the enterprise includes the following activities:

Planning the receipt of material resources and (or) finished products;

Establishing business relations with suppliers;

Delivery organization;

Delivery monitoring;

Acceptance and quality control;

Disposal of unclaimed or low-quality leftovers.

The scope of activity related to procurement includes all functions the performance of which is necessary for the continuous provision of the company. Therefore, the activities of a purchasing manager include solving the following tasks:

Determining the need for material resources;

Search for a potential supplier;

Assessing the possibility of purchasing from several alternative sources;

Selecting a procurement method;

Establishing an acceptable price and delivery conditions;

Delivery monitoring;

Evaluation of the supplier's products and the quality of the supplier's services.

If the supply functions are expanded, then they will include inventory control, transportation, and acceptance of purchased products.

The supply manager is classified as a manager in the enterprise. To obtain this position, a person must have a specialized secondary or higher education, and necessarily with an economic focus. Work experience must be at least 3 years, directly in the supply area.

Required knowledge of a purchasing manager

• Regulatory acts, information regarding the material and technical supply of the enterprise in all aspects.
• Features of planning successful and correct supply of all structures of a company or holding, as well as rules for maintaining records and timely delivery of material and technical resources, among which raw materials, semi-finished products and other materials are especially important.
• The procedure for establishing standards regulating the minimum and maximum possible amount of inventory, as well as the features of energy-saving measures.
• Features of organization and control of logistics.
• Conducting meetings with official suppliers, the specifics of concluding contracts with them, as well as rules for monitoring their implementation.
• Basic instructions that relate to the formation of all documentation for the release of inventory items. These resources must be fully, evenly and rationally distributed between work units.

Important information that a manager has

The employee knows the technical conditions and rules governing the specifics of compliance with the conditions on the material and technical aspects of ensuring product quality, as well as the procedure and rules for developing these rules; prices for wholesale quantities of products, as well as the cost of products of the same name in retail trade, the range of valuables consumed in work processes.

The employee’s competence includes technologies that serve the correct and rational organization of workers’ labor, management of the activities of a specific unit; requirements for the form of accounting for supply operations, as well as features of the formation of reporting documents reflecting the situation in the implementation of the plan for ensuring the material and technical part of the enterprise.

Information that contributes to the successful implementation of work activities

The employee must know the specifics of forming and submitting claims to suppliers if the goods were delivered late or in improper form. You should also be able to collect compensation for incorrect or poor-quality performance of obligations under the contract, and learn how to terminate the agreement on the most favorable terms for the company.

The manager knows how to process, transform and store information, using timely technologies and means of communication; provisions of labor legislation relating to the activities of a particular company; basic norms and rules of labor protection for employees of each division.

What does a purchasing manager do?

• Organizes the policy of a specific enterprise regarding the provision of the material and technical part of production and work processes.
• Manages the development of projects of various plans that have material or technical significance for the company's activities.
• Takes an active part in the calculation of inventories that have production value, based on identifying the important needs of the organization. Often these are raw materials, semi-finished products, equipment, and various other materials. This must be done by the production supply manager.
• Manages the development and implementation of programs to provide the enterprise with uninterrupted resources of all types necessary for full-fledged production of products.
• Searches for suppliers, comparing and analyzing the performance of each manufacturer in terms of price, quality, terms and conditions of delivery.

Important responsibilities of a manager

• Constantly engaged in building relationships with suppliers, while analyzing their capabilities for timely delivery of quality products, and also determines whether it is necessary to conclude long-term trading relationships.
• Engaged in the preparation and correction of documentation that will be needed when concluding contracts.
• Organizes and carries out important negotiations with suppliers to announce orders, agree on terms and specifics of deliveries. This includes the duties of the procurement department manager.
• After agreeing on all conditions, signs contracts with product suppliers.
• Studies offers from small wholesale buyers, market features, wholesale fairs, and also puts forward ideas for purchasing consumables at optimal prices.
• Controls the delivery process of purchased resources from suppliers or individual sellers.
• Organizes and supervises the processing of material and technical resources. This includes competent acceptance of goods, taking into account their integrity, quantity and quality, drawing up and collecting the necessary documentation, which must be submitted with a report to senior management, further movement and organization of storage of products in proper form and within quick availability. This is the responsibility of the supply manager, whose job responsibilities include a large list of similar work.

Additional actions

The manager files various claims against suppliers if they are found to have violated the obligations stipulated by the contract, monitors the reports on the effectiveness of these claims, corrects the current situation, and coordinates with suppliers all changes in conditions that differ from the original ones. This is the responsibility of the purchasing and supply manager.

Sometimes this employee evaluates and verifies the fulfillment of the terms of the contract by suppliers for the quality and efficiency of their implementation, the feasibility of certain points, and also makes a decision to change suppliers or change the terms of interaction with them. This is provided for by the job description of the supply manager.

The manager controls the reserves of material and technical resources, compliance with the limits provided for by rational standards, monitors their proper expenditure and use only for important purposes necessary for the production of quality products. This should be done by the supply manager, whose job description provides for this aspect.

Development and implementation of various activities

The responsibilities of a person holding the position of supply manager include increasing the rationality and efficiency of the use of all material and technical resources of specific departments and the entire enterprise; reduction of costs related to transportation costs and preparation of appropriate conditions for storing material and technical resources.

One of the main goals is the improvement and development of a clear control system designed to determine the feasibility of using various materials that have technical or economic value; identification and timely implementation of excess material and economic resources so that there is no even minimal damage to products.

Development of new technologies

This employee makes proposals for replacing expensive and hard-to-find material and technical resources with cheaper ones without losing the quality of the finished products produced by the enterprise. The responsibilities of the sales manager include not only reducing costs, but also searching for opportunities to purchase products at a base price, that is, directly from the manufacturer.

The responsibilities of the purchasing manager include reducing investment and unproductive inventories of material and technical resources. This is achieved by improving management systems and selecting the best suppliers; improving the quality and reliability of all material and technical resources, monitoring the relevance of the materials used, and the possibilities of their constant modernization; a decrease in raw materials in products manufactured by a certain company.

Rights

1. Independently determines relationships with suppliers, both economically and technically, but the purchasing manager must always act for the benefit of the company.
2. Check and sign documents received by the employee, within his competence.
3. Request in writing or orally from the heads of departments or the company all the necessary information and documents that are related to professional activities and can serve for the benefit of the company.
4. Familiarize yourself with all provisions, timely receive information about changes in regulations for the implementation of work activities, take into account the criteria for assessing the quality of performance of your own job duties.

Opportunities provided by the position

The manager can make proposals and ideas to the company's management, which serve to improve the conditions for their implementation, and also demand their consideration by the company's management, which is always done by the purchasing manager. Responsibilities and rights in this case are identical.

The employee has the opportunity to demand from all company managers quick and proper provision of work conditions, as well as improvement of documentation related to instructions or instructions for the performance of their job duties.

The employee is obliged to fulfill his own duties in a timely manner, strive to ensure the maximum quality of products and raw materials, which is entirely within his competence. The supply manager is responsible for the quality of incoming products, all material and technical resources, on which the successful operation of the enterprise depends.

Supply- this is an activity that includes procedures for purchasing, delivery, acceptance, storage and pre-sale preparation of products.

Supply management is the activity of coordinating the interaction of supply chain participants in order to provide added value to consumers.

1) description of the organizational structure of the supply unit;

2) regulations on valuable purchases;

3) regulations on the ethics of supply activities. Supply functions:

1) identifying and studying sources of resources and suppliers of products;

2) determining the need and calculating the quantity of ordered products;

3) decision on the order;

4) establishing the quantity and timing of deliveries and monitoring them;

5) inventory management;

6) recording and monitoring the progress of fulfillment of contractual obligations.

Supply principles:

1) systematicity - delivery of products based on planned delivery schedules;

2) rhythmicity - delivery of products at relatively equal intervals;

3) efficiency - implementation of the process of supplying products depending on changes in demand for it;

4) efficiency - minimal costs of working time, material and financial resources for product delivery. Achieved through the efficient use of vehicles;

5) centralization - supplying consumers with products using the forces and means of suppliers;

6) technological effectiveness - the use of modern procurement and supply technologies.

Supply program development- determination of the type and quantity of products purchased in various markets, as well as the time of purchase of a particular type of product.

Supply system requirements:

1) ensuring a continuous flow of products (ensuring a continuous flow of raw materials, components and the provision of services necessary for the life of the enterprise);

2) inventory management (reducing the level of investment associated with product inventories and the costs of maintaining them to a minimum);

3) maintaining the level of quality of customer service;

4) work with suppliers (search for competent suppliers);

5) standardization (purchase of standard products where possible);

6) achieving the minimum total cost of service (the procurement process requires the availability of products and services at the lowest cost);

7) ensuring the competitive advantage of the enterprise;

8) developing relationships and achieving harmonious, productive and working relationships with employees of other functional departments of the enterprise;

9) ensuring supply while reducing overhead costs. Reliability of supply is the guarantee of providing the consumer with the products he needs within a planned period of time. Any enterprise, both manufacturing and trading, in which material flows are processed, includes a service (supply service) that purchases, delivers and temporarily stores labor items (raw materials, semi-finished products, consumer goods).

The supply service, being an element of the enterprise that organized it, must organically fit into the micrologistics system that ensures the passage of material flow in the supply-production-sales chain.

Logistics and technical supply of an enterprise is a primary task that management has to solve to ensure that assigned tasks are completed in the most efficient manner.

Enterprise supply specifics

For small companies with a narrow range of products, this may be one supply specialist. For medium-sized organizations that produce a wider range of products, as a rule, a supply department is already organized. At large enterprises with a developed product range, it is not uncommon to create supply departments (directorates) with a developed structure.

In cases where individual product groups are large in volume and complex in assortment, a specialized material supply department is created by area.

For example, at all enterprises in the pipe industry, metal bureaus were part of the production divisions of the plants. This is justified by the fact that the range of blanks amounted to tens of thousands of items and the preparation of production schedules directly depended on the rhythm of its deliveries.

Purchasing department: functions

• Organization of the formation of a range of materials for production.
• Supply planning by year and by periods of the year (quarter, month).
• Studying the market for suppliers of the necessary product groups by participating in exhibitions, fairs and other similar events. Selection of optimal supply options taking into account logistics.
• Concluding contracts for the supply of material resources and monitoring their implementation.
• Organization of acceptance of incoming goods and products in accordance with current documents (Delivery Regulations, Instructions P-6 and P-7).
• Optimal placement of purchased material assets in warehouses, taking into account the internal logistics of the enterprise.
• Development of consumption standards for individual commodity items in production and monitoring their implementation.
• Development of proposals for replacing expensive materials with cheaper ones, taking into account their manufacturability.
• Organization of activities for the preparation and implementation of enterprise standards in terms of material support.

This work at the enterprise is headed by the head of the supply department. He reports directly to the Commercial Director.

Organization of materials supply

The supply department, the functions of which are discussed above, is usually built in three main areas:

1. Material groups. They organize and control the supply of goods of certain groups (working clothes and footwear, office supplies, bearings, lubricants and fuel, household goods, etc.), control their correct use in accordance with the requirements of the technological process. Warehousing operates in direct contact with them.
2. Quality control department at acceptance. Organizes incoming inspection of materials and products in accordance with the provisions mentioned above. The group must include the participation of a qualified lawyer heading the claim work. The basis for carrying out its activities is the corresponding enterprise standard.
3. Bureau of Standards. This division develops and monitors the implementation of material consumption standards. It includes a specialist responsible for the timely movement of accounting and financial documents and reporting on them, as well as an economist or a corresponding group. It depends on the size of the enterprise and the volume of information flow.

Head of Procurement Department

An engineer with a higher economic education who has significant experience in a similar position is appointed to this position.

The head of the department represents the “managers” category. He carries out the duties of his position in accordance with the current regulatory and other documents on material and technical supply, the Charter of the organization and the relevant instructions and orders of senior management, job description.

Competence

The head of the supply department must know:

• regulatory and legislative documents relating to the organization’s supply;
• market methods of farming;
• promising directions for the development of the enterprise;
• methods for planning the consumption of material resources, the procedure for establishing standards and monitoring the implementation of expenditure indicators;
• organization of warehousing;
• the procedure for conducting contractual work with suppliers;
• the level of wholesale and retail prices for the materials used;
• basic legislation on labor, labor protection and fire safety.

Job responsibilities of the head of the supply department

1. Organization of providing the enterprise with material resources in the required quality and quantity, as well as their rational use for maximum production efficiency.
2. Management of long-term and current planning in terms of supporting core activities, the needs of the repair and maintenance service and other needs of the enterprise based on the application of progressive standards for material consumption.
3. Finding ways to cover production needs using internal reserves.
4. Ensures the conclusion of contracts for the supply of necessary resources, seeks the opportunity to establish long-term cooperative ties.
5. Organizes timely delivery of materials to the organization’s warehouses and their acceptance in accordance with current standards.
6. Sets up and monitors claims work on deviations due to the quality and quantity of resources, compliance with their delivery schedules.
7. Provides regular monitoring of the status of inventories in the enterprise's warehouses, their timely replenishment in accordance with standards.
8. Initiates the development of measures for the rational use of resources, production waste and illiquid assets. Finds ways to optimally deliver inventory to the enterprise.
9. Organizes the functioning of the warehouse, ensures compliance with the rules for the placement of storage items.

Conclusion

Supply departments of factories and other enterprises directly influence the success of their work. In the cost of production, materials occupy a decisive place, which imposes special responsibility on the supply department for the fate of the organization.