If the specializing in procurement and supply chain division should contribute to the achievement of organizational goals, it is necessary to equip professionals and clearly define the areas of responsibility for them. Specialization of procurement professionals helps them to develop expertise in specific areas and may require in the overall structure of specialized groups. Most of the large supply and procurement divisions consist of four general areas: management and sourcing of goods, material flow management, administrative tasks, and research related to supply.
Sourcing
The specialists who are engaged in this direction develop trade strategies , identify potential suppliers , their ability to analyze , select and determine their prices, terms and items for inclusion in agreements with suppliers , and they are preparing contracts and purchase orders . This direction is usually further determined by type of goods, such as raw materials (which , in turn , can be further subdivided into categories ) , various types of fuel, capital goods , office equipment and consumables , supplies for MRO.
One of the types of goods management is procurement for the project, where specialization in procurement and negotiation are determined by specific types of finished products or the content of the project. This requires a good knowledge of the purchaser of all the features of the project from start to finish. The overall procurement activities of the project may engage in procurement service large contractor, with the purchase of each specific work remain the responsibility of the individual time bands. Upon completion of the project buyer gets a new job and switches to another project.
Materials Management
This group manages the contract after it was signed, directs the flow of materials and services from suppliers and monitors, as a supplier of its obligations under the supply and quality of products to avoid any surprises, adversely affecting the work of the organization. When a problem occurs, group material flow management is included in the solution and helps the supplier to deal with it. Activities in Materials Management are mostly carried out at the level of the individual enterprise or office and require regular communication with suppliers on specific types of products, in particular the size of the order and delivery dates.
Administrative functions
This group is engaged in the preparation and dispatch of official documents relating to the procurement of Procurement Services manages the budget , analyzes the data needed for her work , prepares reports for executives and managers to supply . These employees often control the operations on the basis of information systems, including systems for e-procurement, e-commerce B2B and EDI.
Research in the supply field
Researchers from the procurement department are working on projects related to the collection, classification and analysis of the data needed to make more accurate decisions on purchases. The types of activities in this area include: the exploration of options for the use of alternative materials, the analysis of long-term demand, a forecast on prices and supply, cost of production and delivery of the goods or services of efficient supplier. This group is also engaged in benchmarking studies.
