Procurement Division: its structure and function

Many enterprises and organizations in the course of their activities come to the conclusion that it is necessary to create a special structural unit, called the procurement department. Its main task is to search and cooperate with suppliers of quality materials and raw materials, as well as a set of competent specialists capable of organizing effective work in the department. With the right approach, the new unit, of course, will require additional costs and time and financial resources, but in the future it will bring much more benefits, as it will help maximize profits.

The most important point is the very process of forming a new division, since it is necessary to clearly establish the goals and tasks that it should perform, and also outline a certain range of duties and job requirements. The recruitment of personnel is no less difficult. The purchasing department should be under the guidance of an intelligent, sociable person who is able not only to make decisions in the shortest time, but also individually to find an approach to each counterparty. The duties of the manager also include the creation of job descriptions that are mandatory for compliance by all employees of the firm. This document should contain the rights and duties of personnel, a measure of responsibility for the admission of violations or deviation from the working schedule. Each paragraph should contain clear information that all employees can understand.

Specialists of the department develop a list of products necessary for the regular replenishment of the company's reserves, and then begin to search for counterparties. When choosing them, it is necessary to build on the goals pursued by the department. For example, if the task of an enterprise is to reduce the cost of a finished product by reducing the price of procurement materials, then experts are looking for raw materials of acceptable quality, but at a reduced price. Work with suppliers is considered one of the most important moments, because with competent negotiations, a specialist can achieve a significant discount on the product, then you do not have to sacrifice quality characteristics. From the above, it can be seen that this department really helps to reduce costs without harming the company itself.

When the purchasing department is created, the manager must divide this process into several separate stages or steps, each of which has a specific task and motivation for action. In general, you can imagine four stages:

1. The job descriptions are drawn up, the list of employees suitable according to the criteria is approved. The instruction should be made so competently that the specialist does not have a single question about what the company and its specific department are doing, and what are its responsibilities. Simply put, at the first stage, the department is structured, that is, the distribution of functional requirements for each employee. The structure of the department should be built on the rational assignment of tasks. In the best case, you should distribute all suppliers so that there are no more than five counterparties per employee.
2. The personnel development system is planned , for example, an estimate is made for conducting further seminars or sending highly-paid colleagues to advanced training courses.
3. A system of labor remuneration for employees is being developed, including a tariff scale and a bonus scheme that allows individuals to be rewarded for their success in their work. Various bonuses and bonuses are a strong motivation for improving one's own abilities, and for the enterprise this serves as a tool for increasing the efficiency of work.
4. As the final stage, it is necessary to distinguish the organization of the control system. The Procurement Division refers to the units in which considerable monetary resources turn around. Their intended use must be controlled and regulated without fail.