The purchasing process is carried out in every enterprise, regardless of its business profile. Companies procure raw materials, supplies, assemblies, parts, and various types of services. These goods are necessary for conducting business activities, primarily in production and services. The universality of the purchasing process makes it play a significant role in every company, influencing its economic situation and competitive position.
The importance of the procurement process is visible in the delivery of food products, which require specific transport and storage conditions throughout the supply chain. Due to the susceptibility of raw materials and food products to spoilage and their limited shelf life, the selection of reliable food suppliers specializing in “fresh logistics” transport plays a very important role. The market success of the final product delivered to the end customer often depends on the quality and effectiveness of the procurement staff’s actions.
Supplier selection
Supplier evaluation
Many authors argue that the success of the purchasing process largely depends on the supplier. There are situations where the way a partner conducts the sales process causes the received product to differ from the one ordered, the delivery is late, and the quality of the goods does not meet the agreed requirements. Hence, both in the literature and in business practice, more and more attention is paid to the issue of supplier selection.
The supplier evaluation procedure includes: the supplier’s production, organizational, and control capabilities, their experience, market position, and operational flexibility. It is used to evaluate:
- new suppliers,
- suppliers with whom conditional contracts have been signed,
- suppliers interested in increasing delivery volumes,
- previously selected suppliers who need to be re-verified.
According to the authors, supplier evaluation should be based on systematic, effective, and comparable principles, cover all segments of the enterprise-supplier relationship, and be carried out based on a set of criteria characterizing various aspects of their operation, including: technical, economic, environmental, market, social, and organizational.
Some authors emphasize that in accordance with modern supply chain management principles, it is important to create long-term cooperation between the supplier and the recipient based on cooperation. These principles are based on partnership, stability, sharing of achievements and risks, functional integration, improvement of material quality, introduction of innovations, delivery reliability, etc.
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Source: Logistyka Magazine
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