Supply Chain Management – Procurement Logistics

In the 1990s and the beginning of this century, the purchasing area was not perceived as the most critical activity from the company’s perspective. It was one of many functions that had to be carried out through operational rather than strategic activities.

Changes in the economy (the shift towards global purchasing) had a significant impact on the evolution of how purchasing is perceived, as well as the financial dimension of procurement and its influence on performance metrics such as quality, delivery reliability, and the use of information technology. Procurement logistics is a logistics system closely linked to the market. The main goal of procurement logistics is to maintain a balance between material needs and costs. Procurement with inventory maintenance is the second principle of procurement, which involves holding materials in stock in one’s own warehouse to cover the company’s demand, ensuring they are always available when needed. By using this method, companies cease to be dependent on delivery delays and become significantly less susceptible to demand fluctuations; however, excessive inventory levels can lead to losses resulting from product obsolescence or capital being frozen in stock. The article presents the role of procurement logistics in the supply chain and provides an analysis of two selected product groups using the example of a company in the OHS industry. The result is a value-quantity analysis of the stock levels of selected product types, along with conclusions regarding errors made by the company.

Supply Chain Management
Supply chain management has existed since the 1980s-1990s – the concept of a supply chain / logistics pipeline (logistics chain) emerged, followed by efficient consumer response (ECR). The main reason for interest in the supply chain is better customer service (efficiency) and the possibility of cost savings (effectiveness). Everyone strives for the company to gain a more favorable competitive position and maintain it in the global market despite rapidly changing customer needs and pressure from competitors. Conducting business within supply chains on an industry scale or within individual supply chains brings significant benefits. According to studies by the National Grocery Manufacturers Association and other organizations, the packaged food industry could save over $30 billion annually by increasing the speed of inventory flows through the supply chain to the final customer. Over time, companies began to strive to include all firms involved in delivering the final product to the customer at the right time, in the right condition, in the right quantity, and at the right cost. (…)

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