EVOLUTION OF INDUSTRIAL ENTERPRISES' PROCUREMENT SYSTEM

Анотація

This paper is devoted to the transformation of the procurement system at industrial enterprises. Its purpose is to systematize the world experience in the given field of study and develop special recommendations aimed to increase the industrial enterprises' efficiency in the procurement area.
\nIt is shown that changes in the procurement of industrial enterprises include transformation of procurement from a narrow operational/transactional function to a strategically significant function of enterprise's management and achieving its competitiveness. Evolution models were analyzed, which state the changes in procurement as follows: building partner relationships with suppliers, a growing of status of the procurement department in the enterprise hierarchy, passing to the interfunctional co-operation with other departments of an enterprise. On this base the main results of the procurement system transformations were formulated:
\nfocus on the total enterprise efficiency rather than the level of procurement prices;
\ntreating suppliers as an external resource, rather than a seller;
\npassing from rival relations to strategic alliances with suppliers;
\ntransition from single purchase orders to long-term contracts;
\nabandonment of price pressure on the supplier in favour of joint management of expenses;
\ntransition from reactive actions to proactive/preemptive ones;
\nchanging the status of the procurement department' employees: from procurement managers to specialists in the supply chain management;
\ngrowing procurement department employees' professionalism: from narrow specialists to multifunctional professionals which makes it possible to refuse from strict supervision over their activity and raise their authorities;
\ntransition from separated departments to interfunctional teams.
\nRecommendations are offered for increasing the procurement efficiency of industrial enterprises. To raise the status and responsibility of the procurement department for interaction with suppliers and total results of the enterprise activity, retraining of employees is required to master modern methods and skills in the interaction with suppliers, work in interfunctional teams, application of electronic procurement systems etc. Special effort should be maid to increase suppliers' loyalty and transparency/confidentiality of relations with them, as well as to obtain consent of other enterprise departments and top management support as to the given changes.

Класифікація

Схожі роботи