The logistics department isThe unit, whose activities are aimed at providing the necessary production resources. At the same time, this activity should be carried out until the very beginning of the production process: from the occurrence of such a need in resources before their application during the manufacture of products.
Definition of basic terms
The Supply Division operates within thecommercial activity of the business entity, implying the implementation of various trade operations related to the acquisition of necessary resources and the sale of manufactured products. The optimal organization of this structural unit is to a certain extent determined by the level of use of means in production, growth in labor productivity, a decrease in the cost of production, an increase in the profitability and profitability of the enterprise. The same role is played by the material supply department in production management.
The main purpose of this unit is to bring specific resources to the participants in production in the required quantity and volume, in an exact time and with minimal costs.
The supply department has an address character thatis determined by its orientation and the purpose of ensuring the functioning of the production enterprise. First of all, we are talking about the needs of various consumers of products, services or works of this business entity.
Supply Department: its role and importance
Its role and significance are as follows:
- the activities of this unit precedeproduction and not only serves to provide the resources of the production process, but also independently creates in a certain sense its price and consumer value;
- determines and forms both the economic results of the business entity, and the requirements for the resources and finished products of the consumers themselves;
- designation of financial results of the production enterprise;
- as an activity type of the enterprise is the main source of its competitiveness.
A significant share of material costs in total expenditures (about 60%) also confirms the weighty importance of material and technical supply.
Main tasks and functions of the supply department
1. Provision with the subsequent maintenance of an optimum level of stocks of resources that will help to minimize the costs connected with their preparation.
The supply department performs the following functions:commercial and technological, as well as auxiliary and basic. The main functions include the acquisition of a resource, and to support - marketing and legal support.
Procurement Categories
In modern large companies, employees of departmentsSupplies are divided into several categories. This is due to the constant growth of volumes at enterprises, which entails a delineation of the functions of planning, supply and saving of goods. With this structure, each division performs its functions and has a specific direction. Coordination of work within these structural units is carried out by the chief of the supply department.
Structure of the supply system
Within the framework of such organization of work, each individual unit should be responsible for a certain group of goods with full control over the supply of resources and storage in warehouses.
The supply department is still known under a different name- "purchasing department". This division is formed depending on the number of suppliers and assortment of imported goods. Must be considered and the turnover of products. Often, in companies in such departments, there are more than ten suppliers per worker. In general, work areas are fixed depending on the types of goods or product groups. Ordinary employees track the delivery of goods, the timeliness of payment for their supply, and also plans for subsequent purchases. The head of the supply department controls the implementation of approved procurement plans, monitors the goods turnover, oversees the work of managers and, of course, exercises overall leadership. His job is to ensure the continuity and scheduling of supplies.
