Optimization of the internal procurement process at the world's leading producer of phosphate rock

Abstract

Purpose: This article discuss the results of a field study that was carried out over a 6 months period. The objective of this research aimed at studying the internal procurement system of one of the world's leading Moroccan companies that has a 4.3% contribution to the national GDP. Design/methodology/approach: Our work, based first of all on the elaboration of an overview and then on the use of more than 6 methods and logistic tools, will allow this company to develop its own procurement method, adapted to its constraints and capacities. Findings: In terms of figures, this company sources 157 items from several suppliers. These references are then stored initially in the company's store, and depending on the demand from internal customers, a distribution is subsequently planned. A shortage of stock on some items and overstocking on others is a blatant contradiction suggesting several paths for improvement. Ultimately, the results of our work have enabled us to reduce financial immobilization by 40%, as well as a considerable gain in storage space. Practical implications: This paper shows the importance of responding to the problems of large companies with adapted and targeted methods. Originality/value: This article presents an original parallel application of almost all conventional logistics methods, for a global and efficient optimization.