Analysis of methods to optimize a company’s procurement system

Abstract

Today, procurement activity has an important role in every subject of economic activity and is considered one of the most important areas of activity of the enterprise, as it lays the foundation for the successful activity of the subject. Due to the rapid growth of the global economy and the globalization of business, supply chains at both the international and local levels have become more integrated and, consequently, in order to gain the maximum possible competitive advantage in the market, enterprises should pay special attention to supply chains and make great efforts to strengthen, strengthen and optimize them. Due to the widespread development of logistics activities, procurement has become the most important procedure in the corporate strategy, as with effective management of the procurement system, it becomes one of the tools to reduce overall costs, and, as a result, to achieve a higher level of profitability. The purchasing activities of retailers can have a significant negative impact on the working conditions in the supply chain as a whole. Many key procurement processes and decisions in the supplier company, such as deadlines, the relationship between buyer and supplier, critical path management, supplier search, affect how supplier companies manage their production and workforce, and this may indirectly affect working conditions. Thus, improving the problem of effective organization and management of the procurement system makes it possible to significantly influence the success of each economic entity and its competitiveness.