Department of Logistics - a division, which aims to provide the necessary production resources.Furthermore, this work should be carried out before the beginning of the production process: from the need arises resources to their use in the manufacture of the products.
definitions of key terms
Supply Division operates within the commercial activities of a business entity, which implies the implementation of various trade transactions related to the acquisition of the necessary resources and the implementation of these products.Optimal organization of the structural unit to some extent determined by the level of use of resources in production, increasing productivity, reducing production costs, increasing margins and profits of the enterprise.The same role is played by the department of material supply in production management.
The main purpose of this department is to bring specific resources to the participants in the proceedings in the required amount and volume at the exact time and with minimal costs.
Supply Division has targeted, which is determined by its orientation and to ensure the functioning of the industrial enterprise.First of all we are talking about the needs of different consumer products, services or works of the entity.
Supply Division: its role and importance
his role and importance are as follows:
- the activities of this unit is preceded by the production of not only serves to provide resources of the production process, but also independently creates a sense of its price and the consumercost;
- defines and shapes as the economic performance of a business entity, as well as resource requirements and the finished product consumers themselves;
- designation of the financial results of the manufacturing enterprise;
- as an activity of the enterprise is the main source of its competitiveness.
significant share of material costs in total expenditure (about 60%) also confirms the weighty importance of logistics.
main tasks and functions of the department of supply
1. Provision in order to maintain an optimal level of reserves of resources, which will help minimize the costs associated with their work piece.
2. Providing accurate, timely, comprehensive and sufficiently reliable resource supply to consumers (sometimes even to the workplace).
Purchasing Department performs the following functions: the commercial and technological, as well as auxiliary and main.The main features include the acquisition of the resource, and to support - marketing and legal support.
categories procurers
In modern large companies Clerk supplies are divided into several categories.This is due to the constant growth of the enterprises, which entails the separation of functions of planning, supply and savings products.With this structure, each unit performs its functions and has a specific direction.Coordination of work in the framework of these structural subdivisions carries Procurement Manager.
structure supply system
As part of such an arrangement, each individual unit must be responsible for a certain group of products to the implementation of full control of the delivery of resources and store them in warehouses.
It should be noted that the structure of the supply chain is a key tool for achieving the goal of any business entity which operates, for example, in the area of trade.Therefore, the process of structuring the department of logistics should be given close attention.
Supply Division is also known by another name - "purchasing department".This unit is formed depending on the number of suppliers and assortment of imported goods.It must necessarily be taken into account and the turnover of products.Often, companies in these divisions per employee account for more than ten suppliers.Mainly job sites are fixed, depending on the types of products or product groups.Ordinary employees monitored the delivery of goods, timely payment for their delivery, as well as planned next purchase.Procurement Manager monitors the implementation of the approved procurement plans, monitors the circulation of goods, oversee the work of managers and, of course, the general management.His responsibilities include ensuring continuity and planned deliveries.
