Supplier selection criteria. Working with suppliers: how to establish effective cooperation

1.2.1. Determining the need for material resources

When solving this problem, consumers of MR within the enterprise are identified, the needs for MR are calculated, and requirements for weight, size, service and other supply parameters are established. There are the following main approaches to determining the need for MR and the volume of MR procurement:

1) order based previous experience in the consumption of similar materials in the past;

2) heuristic, intuitive method allows you to assess the need based on the experience of workers gained in previous work;

3) order based predicted demand. Used for independent type of demand. Various forecasting methods and models can be used: regression models, methods smoothing, various time series models, etc.;

4) MRP– material requirements planning, used for dependent type of demand (see clause 7.5.2) .

All the considered methods for determining the quantity, timing and frequency of purchases have their advantages and disadvantages in terms of accuracy, time consumption, cost of services or determining the needs of medical organizations. Their choice depends on: the profile of the company; customer capabilities; type of products; availability and type of warehouses; inventory management and control systems.

1.2.2. Procurement market research

The starting point of market research should be a precisely formulated setting the subject and goal research. The impetus for conducting research can be: problems with high own costs of the enterprise; changes in our own sales program; decision on the use of scientific and technical progress results; decision to increase the company's market share; increased competition; unreliability of current suppliers; uncertainty of supply volumes from suppliers in the future, etc.

Procurement market research includes:

1) analysis of the behavior of the supplier market, namely:

· modern market analysis (“snapshot”);

· dynamics of changes in market conditions;

· forecasts of market changes;

2) assessing the risks associated with entering a specific market;

3) identification of all possible suppliers and their offers on goods, prices, conditions, guarantees, business prospects, etc.

Types of procurement markets

1. Direct markets that currently meet resource needs.

2. Indirect markets, i.e. used by suppliers.

3. Markets for substitutes, i.e. fully or partially replaced products.

4. New markets.

It is very important to study the market in parallel with the development of new products. For example, in mechanical engineering it begins and is carried out at the stage of product design. Supply authorities provide designers with the necessary catalogs and descriptions. But catalogs and descriptions usually do not contain pricing information, and without this it is difficult to achieve cost-effective decisions on materials and design of future products. Therefore, the direct task of supply authorities is to collect information not only about the range of goods on the procurement market, but also about prices, possible delivery times, transportation costs and the search for their optimal combination.

1.2.3. The "make or buy" task

There are no enterprises that could independently produce all the resources used in their activities. Therefore, the urgent task is to make a decision “make or buy” (MOB – Make-or-Buy Problem) about whether to purchase certain materials, components, parts or produce them yourself. This requires taking into account external and internal factors.

TO external Decision-making factors include the degree of development of logistics relations in a given economic system; the more developed they are, the higher the reliability of supplies and the lower the risk of losses.

TO internal Decision-making factors include conditions within the enterprise itself.

The advantages of self-production include: reducing the enterprise’s dependence on suppliers, on fluctuations in market conditions, i.e. increasing the sustainability of the enterprise; the ability to directly manage the quality of components at the stage of their production, etc.

The advantages of external procurement relate, as a rule: higher quality and lower cost of components due to the specialization of the manufacturer; concentration of efforts on the main activity; flexibility in changing the types of products produced by quickly obtaining the required MR from suppliers and refusing deliveries that have become unnecessary, etc.

Table 1.1 presents the conditions under which May be(but not necessarily) a decision has been made on external procurement or in-house production.

Table 1.1

Conditions for the profitability of purchasing or own production

Factors	Profitability
	external procurement	own production
Need	small	stable and large enough
Required power	none	present
Required personnel	none	present
Suppliers of initial MP for the production of components	available (range, quality, prices, etc.)	not available
Transport tariffs	short

In addition to analyzing the listed factors, to make such a decision it is necessary to determine and compare the costs of procurement and in-house production. In general, procurement costs are determined at the cost supplier, but include: costs for placing an order; transportation; insurance; packaging; warehousing; processing (processing, sorting, etc.); payment of personnel related to procurement, etc.

The costs of own production consist of costs on production(cost of raw materials, energy, labor, storage, depreciation, overhead) and possible capital costs to organize the required production (purchase, delivery, installation of equipment, training of workers).

1.2.4. Supplier selection problem

Searching, processing and analyzing information on procurement markets and suppliers is a very labor-intensive and lengthy process. Most organizations have a list of trusted suppliers who have provided them with acceptable service in the past or who are known to be reliable. If a suitable supplier is not listed, the organization must find one. The final choice of supplier is made by the decision maker and cannot be fully formalized. However, there are standard steps for solving this problem.

Main stages of solving the supplier selection problem

1. Search for potential suppliers:

Announcement of the competition;

Visiting exhibitions and fairs;

Correspondence, business and personal contacts with possible suppliers.

2. Analysis of potential suppliers according to the following criteria:

- price and financing terms;

- quality products;

- reliability of supply(compliance with contracts regarding delivery times, assortment, completeness, quality and quantity of products);

Distance of the supplier from the consumer;

Lead times for current and emergency orders;

Availability of reserve capacity;

Organization of quality management at the supplier;

Good reputation;

Convenient and easy purchasing system;

Psychological climate of the supplier;

Ability to ensure the supply of spare parts throughout the entire service life of the supplied equipment;

Financial stability;

Long-term perspective of the supplier’s activities and the possibility of forming long-term relationships.

3. Assessment of potential or existing suppliers based on:

Supplier selection criteria;

Analysis of the significance of the product (for which MR is purchased) for the production or trade process;

The significance (importance) of each criterion;

Supplier ratings for each criterion.

Procedure for selecting the best supplier

Ø Search for potential suppliers.

Ø Make a general list qualified supplierscove, i.e. capable of actually delivering the necessary products.

Ø They compare the organizations included in this list and remove from it those that for some reason do not suit them.

Ø They continue to cross off organizations from the list until they get a so-called short list (usually four to five) of the most promising suppliers.

Ø Prepare a request for prices and send it to a short list.

Ø Receive proposals with prices.

Ø Conduct a preliminary assessment of proposals and remove from the list those with whom problems may arise.

Ø Conduct technical evaluation to determine whether all offered products meet specifications.

Ø Conduct a commercial assessment, comparison of costs and other conditions.

Ø Prepare preliminary meetings with remaining suppliers to discuss a possible transaction.

Ø Discuss conditions, agree on specific specific characteristics.

Ø Select the supplier that best matches the intended order.

Ø Arrange a meeting with this supplier to clarify last-minute details.

Ø Place an order with the selected supplier.

This procedure is fully applicable only for large purchases. If an organization is looking for a supplier for a strategically important product, it must be remembered that a bad supplier can cause many more problems than bad materials.

Typically, an organization will spend relatively little time searching for different suppliers if:

· she buys cheap materials;

· has only one really available supplier;

· there is already an agreement with a supplier whose work is satisfactory;

· there is not enough time for extended negotiations;

· The organization has a policy for selecting specific types of suppliers.

Main criteria for selecting suppliers

The number of supplier selection criteria can reach several dozen. To the three main criteria include: the cost of purchasing products or services; quality of products or services; reliability of service.

One of the key issues of logistics is quality of supplied raw materials and components. In developed countries, enterprises that produce technically complex products select as suppliers only those who has shown or can show ability to meet the level of technical requirements placed on them. When considering the capabilities of a supplier, the following requirements come first: availability of equipment to produce products of the required quality; the ability to conduct quality tests according to a given program and using the necessary instruments; control and certification of incoming materials and raw materials; availability of necessary documents defining the number of work operations and their control; availability of documents confirming the completion of all necessary production and control operations.

Programs for maintaining the quality of purchased medical equipment are carefully thought out, even the organization of training for personnel of related suppliers is taken into account. The purpose of training is generally to increase the knowledge level of personnel, who are informed of the latest technologies and processes in order to make the maintenance of machines and devices competent and efficient.

Under reliability of service is understood as a guarantee of servicing the consumer with the resources he needs for a given period of time in strict accordance with all the terms of the supply agreement (volumes, terms, quality, equipment, etc.).

It should be noted that depending on the importance of the product being produced for the enterprise, the same criteria may change their importance. For example, in one case, the most important thing for an enterprise will be the quality of materials or speed of delivery, even at the expense of a high price, and in another, the enterprise will look for cheap resources of average quality, etc. This significance must be measured somehow. To do this, experts assign importance scores to each i-th criterion, which are then converted into importance coefficients ().

Each supplier is assessed according to selected criteria and, depending on how well it meets the i-th criterion, the supplier is given a score.

Then the comprehensive assessment R of a specific supplier for all criteria (supplier rating) will be calculated using the formula.

Organizations use supplier ratings(supplier rating) or seller ratings(vendor rating) not only for selection, but also for monitoring the activities of suppliers. The goal here is not to replace existing suppliers, but to monitor their performance, identify areas for improvement, and agree on how best to implement proposed improvements. And only as a last resort does the organization begin to look for new suppliers.

Methods for organizing the supplier selection process

1. Analysis of possible options and proposals is carried out company sales agent, responsible for purchasing. Its functions include: selection of supplier; submitting an order; order fulfillment tracking; resolution of emerging problems. All issues are usually resolved using modern means of communication, and the exchange of official documentation is kept to a minimum.

2. Peer discussion supply opportunities and needs. The analysis is carried out both at the level of the company’s purchasing department and at the level of its interaction with other departments.

3. Use of intermediary firms. This method is used mainly to ensure the company's supply from a new, poorly understood market. A similar situation may arise as a result of the need for raw materials and components that are fundamentally new for the company. Such a need arises when diversifying production and developing fundamentally new products, as well as purchasing from imports or in a region not studied by the company, etc. In these cases, the purchasing department or sales agent most often contacts the company or bureau that performs the intermediary functions. In this case, intermediary firms can:

Find possible suppliers, advise on the legal and financial aspects of proposed transactions;

Receive authority from the client company and take on the organizational and financial side of the agreement for an agreed percentage of profit or a certain share of the contract amount. In this case, they monitor the volume and quality of supplies, take care of timely delivery, and can provide services for warehousing, picking, packing, sorting and other auxiliary operations.

Search for potential suppliers

The procedure for receiving and evaluating proposals from potential suppliers can be organized in various ways, with the most common and effective being:

· competitive bidding(tenders);

· written negotiations between supplier and consumer.

Competitive bidding (tenders) – a form of searching and establishing highly effective relationships between suppliers and consumers, widely used in industrialized countries. Competitive bidding is carried out if it is intended to purchase raw materials, materials, components for a large sum of money or it is planned to establish long termnal connections between supplier and consumer.

Competitive bidding benefits both the supplier and the consumer. The supplier receives an accurate understanding of the conditions of work with the consumer. The consumer combines solving the problems of obtaining the required product and choosing the best supplier in all respects.

Stages of the tender:

2) development and publication of tender documentation (bidding procedure, description of purchased goods or services, criteria for evaluating proposals, terms of the future contract;

3) acceptance and opening of tender proposals;

4) evaluation of tender proposals in strict accordance with tender documentation and prohibition of any negotiations with bidders;

5) confirmation of qualifications of bidders;

6) proposal and award of the contract.

Written negotiation between supplier and consumer, during which the consumer receives a formal offer for the supply of goods from a potential supplier, can be organized in two ways.

1. Entry Initiativenegotiations come from the seller of the goods. He sends out offers to potential buyers of his products ( offers), which indicate: name of the product; quantity and quality of goods; price; terms and conditions of delivery; conditions of payment; characteristics of containers and packaging; acceptance and delivery procedure. Depending on the number of potential buyers and the validity period of the terms offered to them, offers can be firm or free.

2. Initiative to enter into negotiationscomes from the buyer. He sends out a commercial letter or request to potential suppliers, the main purpose of which is to obtain a proposal (offer). The request indicates all the necessary details (name of the product, required quality, terms and conditions of delivery, payment, etc.), except for the price, which is indicated in the response offer.

Sources of information on supplier characteristics

To collect the information necessary to apply the listed criteria, it is required use of various sourcesnicknames, such as:

· own investigation;

· local sources, such as legal entities operating in a given territory or “informants” of official bodies;

· banks and financial institutions;

· competitors of the potential supplier;

· trade associations, for example the Chamber of Commerce and Industry of the Russian Federation;

· news agencies;

· government sources (registration chambers, tax service, licensing services, etc.) with open information.

When searching for information about suppliers, you should not limit yourself to one source of information, regardless of the volume and depth of information provided by it, and at least one of the sources used should not be interested in the possible consequences of using the information provided to them.

Number of suppliers

Recently, there has been a tendency towards the formation of long-term associations of partners in the supply chain, which leads to a reduction in the number of suppliers of the enterprise.

Advantages of a single source of resources:

· stronger relationships between suppliers and customers;

· economies of scale and price discounts for large orders;

· easier communications, simpler administrative functions and procedures for regularly placed orders;

· smaller range of deviations in the characteristics of materials and their supplies;

· ease of ensuring confidentiality of requirements, conditions and other similar characteristics.

Benefits of multiple resource sources:

· competition between suppliers, leading to lower prices;

· reducing the likelihood of failures in working with suppliers, promptly eliminating emerging problems by replacing suppliers;

· easier to meet changing demand;

· providing access to more information;

· the ability to rely on more than one external organization.

How to build relationships with suppliers. How to choose a reliable supplier. What methods of working with suppliers exist? How the enterprise regulates the terms of work with suppliers.

How relationships and work with suppliers are built

There are two types of supplier relationships.

Some enterprises follow the simplest path - when negotiating, they take a tough position. The goal of this strategy is to obtain the most favorable conditions. In this case, relations between firms are based on the principle of economic feasibility. Another name for them is opportunistic. This system of working with suppliers is effective in the short term, but if it is necessary to build long-term relationships with the supplier, it will not give positive results.

The second type of relationship with the supplier is partnership.

It is also possible to use both approaches when working with any specific organization. The option of coordination (selective competition) or cooperation (selective partnership) is possible.

The enterprise's relations with suppliers should be built both on the principle of economic feasibility (that is, be opportunistic) and based on strategic partnership.

To determine which type of relationship is most suitable for a particular enterprise, you need to carefully analyze a number of factors (both external and internal) and obtain information about the work of suppliers. First of all, you should study the procurement object. Then you can choose a negotiation strategy.

If an organization works with non-strategic material or product groups, when there is no need to change the properties and characteristics of the product in accordance with customer requirements, then it is necessary to build relationships with the supplier based on the principle of economic feasibility (opportunistic). In this case, such a strategy will not negatively affect the quality characteristics of the supplied goods.

If, when purchasing simple products, there is a need to standardize them, relationships also need to be built on the principle of economic feasibility, especially if the enterprise producing the desired product does not fully utilize production capacity or has difficulties with sales. In such a situation, it is possible to change the supplier or replace the product.

Where does the organization of work with suppliers of goods begin?

Organizing work with suppliers begins with searching for them. In order to select a supplier organization, you can:

• announce a competition;
• study advertising materials, professional periodicals, catalogues;
• attend any industry fairs or exhibitions;
• establish contact with possible suppliers.

Below are the criteria by which you need to decide whether or not to enter into a transaction with a supplier.

1. Impact on the final result. Products and services purchased by an enterprise can make different contributions to the cost of the finished product and have different effects on the final result of the activity. The type of relationship between firms depends on the degree of impact. The more significant the impact the purchased product has on the final product (or service), the more necessary it is to build partnerships.
2. Volume of purchase. The greater the volume of purchases, the greater the impact this category of goods has on the formation of the cost of the finished product. Therefore, as the volume of purchases increases, partnerships become appropriate.
3. Complexity of the product and completeness of delivery. If an enterprise needs to purchase a simple single object, then the relationship with the supplier can be built opportunistically. But when the complexity of the purchased product or the completeness of the delivery are required, it is better to choose a partnership with the supplier. By purchasing technically complex products, the company becomes dependent on the knowledge of the supplying enterprise in the field of technology. If she also uses equipment installation and maintenance services, technical and consulting support, then changing the supplier may entail an increase in costs.
4. Risks. Both external and internal risks must be taken into account. Internal ones arise due to instability of consumption. If irregular deliveries are needed, the supplier must be flexible. External risks – monopolization of the market, the number of possible supplying companies; balance of supply and demand; geographical risks associated with the remoteness of suppliers, etc.

How to choose a reliable supplier: 10 evaluation criteria

To be sure that the new counterparty will deliver efficiently and on time, check it against checklist of 10 indicators. With its help, it is possible to determine which of the counterparties is an “excellent student” and which one is a “low student.”

You can download the checklist for verification in the article in the electronic magazine “Commercial Director”.

2 schemes for working with suppliers

Scheme No. 1. One supplier

It is not necessary to enter into contracts with several companies. For some organizations, working with a single supplier (or two or three) is more convenient. In this case, if the goods are purchased in large quantities, you can get a good discount, which will lead to a reduction in the cost of production. To be sure of the reliability of the supplier, you should look for one that has a long-standing reputation and its own name. Also, before deciding to enter into an agreement, you can read reviews from enterprises that are the company’s partners.

This scheme is suitable for organizations that have been operating for many years, have significant experience working with suppliers and working capital that allows them to purchase goods in large quantities.

Scheme No. 2. Several suppliers

If there is a shortage of working capital or at the stage of promotion of a company, work with suppliers on procurement should be organized differently. The most important thing will be to ensure timely payment of invoices for supplied products. This will allow you to avoid falling into a debt trap and stopping the enterprise due to delays in payments and refusal to fulfill the terms of the contract.

When you work with one or two suppliers, you overpay for the goods purchased. If a wholesale supplier has a fairly wide range of goods, then he is a reseller. Its prices are much higher than those that manufacturers could offer you directly.

When working with one supplier, there is a risk of not receiving the goods due to various circumstances. If you take products for sale, then by the time you pay for them you may not have the required amount, since the money will be used to pay other bills, pay salaries to employees, etc. A delay in payment will mean a failure to fulfill the obligations of the contract.

• low cost of goods purchased from the distributor;
• low cost of goods purchased from the manufacturer;
• guarantee of the quality of products purchased from resellers who specialize in certain categories of goods;
• lower cost of goods purchased from organizations engaged in supplying products only from a certain manufacturer (authorized dealers);
• the ability to defer payment, purchase the missing quantity of goods from other suppliers while the debt is being paid to others;
• the ability to ensure the life of an enterprise “on credit” through small amounts of debt to each specific supplier;
• participation in various bonus programs developed by suppliers;
• cooperation with the possibility of concluding exclusive contracts.

If an enterprise cooperates with a large number of suppliers, then it can develop its own strategy for interaction with each of them, taking into account the specifics of the products and the conditions offered by them. When purchasing products that have a very short shelf life and are sold by many organizations, you should build relationships with the supplier based on the principle of economic feasibility, requiring strict compliance with the terms of the contract, excellent quality, and low prices. In this case, it is better not to count on long-term cooperation.

A newly launched enterprise will not be able to interact with only one supplier, even one that works with a wide range of goods.

Expert opinion

4 more criteria for choosing a supplier

Boris Tsirkin,

Managing Partner, KASKAD Family

We needed to purchase ceramic blocks. Suppliers were selected over six months in two stages. At the first stage, we studied preliminary commercial proposals and negotiated. As a result, we eliminated two companies whose conditions were unacceptable to us. At the second stage, we tested the work of the selected companies in practice, signing short-term contracts with them for the supply of ceramic blocks.

Over the course of six months, construction materials were purchased from three suppliers, and the supply volumes were the same. This was necessary in order to select the most reliable one that would meet our requirements according to certain criteria.

Quality. To confirm the quality, the product was tested in independent laboratories. A very important point when assessing quality is organizing feedback with other clients of the manufacturer. We collected feedback from workers and superintendents at various construction sites. All samples met our and state standards, there were only minor differences. Therefore, the selection was carried out according to other criteria.

Price. This indicator must be assessed taking into account the cost of delivery to the construction site, since manufacturing plants are located at different distances. The share of the “price” criterion in decision making is about 60–70%.

Prices for purchased products fluctuate depending on the season, so we used average annual values ​​in our calculations.

Stability of supplies. If a manufacturer has a shortage of products during the season, then short deliveries are possible. Large enterprises need a guarantee of stable supplies, and sometimes supplies in excess of the volume specified in the contract.

Loyalty and partner trust. This is the most difficult criterion to evaluate, but it is extremely necessary. If a supplier is sometimes willing to supply goods without prepayment, promptly respond to complaints and do more than agreed upon in the contract, then this is a significant advantage for him.

Methods of working with suppliers: pros and cons of each

Method 1. Purchase of goods in one batch

It consists of purchasing a large batch of goods at a time (in bulk).

pros: It is quite easy to prepare documents, there is a guarantee of delivery of the whole batch, and the opportunity to get a good discount.

Minuses: large areas of warehouse space are required, capital turnover with this method slows down.

Method 2. Regular purchases in small quantities

The organization places an order for the supply of the required quantity of products within a certain time. The goods are delivered in small quantities.

pros: capital turnover is good, since payment is made for each small batch, and not for the entire volume at once; there is no need to have large warehouse areas; Documentation costs are reduced, since the order is placed for the total number of goods.

Minuses: there is a risk of ordering goods in excess of the required quantity; the need to pay for all ordered goods.

Method 3. Daily (monthly) purchases according to quotation sheets

This method is suitable for those who purchase inexpensive and quickly consumed goods. Quotation sheets are compiled every day (or every month). These should include:

• a complete list of purchased goods;
• quantity of products available in stock;
• required quantity of goods.

pros: capital turnover accelerates; warehousing and storage costs are reduced; deliveries are made on time.

Minuses: the need to maintain strict records of purchased products.

Method 4. Receive goods as needed

Similar to regular deliveries, but has its own characteristics:

• the required quantity of products is not calculated exactly, but is determined approximately;
• there is a need to negotiate each order with the supplier;
• an invoice is issued only for the delivered goods;
• If the contract has expired, the customer has the right not to accept the goods that have yet to be delivered and not to pay for them.

pros: there are no strict obligations on purchase volumes; capital turnover accelerates; Documentation costs are minimized.

Method 5. Purchase of goods with immediate delivery

This method is used when the purchased products are used occasionally at the enterprise or if it is not possible to purchase them as needed. When a product is required, an order is placed and the products are shipped from suppliers' warehouses.

Disadvantage of the method lies in the need for detailed documentation for each order, which entails increased costs, small batches of orders and many suppliers.

How should work with suppliers of goods be regulated?

The enterprise must develop a “Regulation on working with suppliers.” It covers issues such as the selection of suppliers and relationships with them. This document is necessary for the proper organization of the work of the procurement department and control over their activities. It also indicates the terms of work with suppliers. The Regulations should contain the following points:

• who is considered a strategic partner(in which case should relations with a supplier be built as partnerships rather than opportunistic ones, who can be considered a partner (for example, these could be organizations with a certain share of supplies));
• in what order are commercial proposals considered?. This paragraph should also contain the criteria by which a decision will be made on whether or not to negotiate with the company. The terms of cooperation must be written down, and if they are not met, the contract with the supplier cannot be concluded. Exceptions may be made for manufacturers of unique or exclusive products. When working with suppliers, you should use tools such as a contract work schedule, a category “working out” schedule and a proposal picture. They allow you to effectively search and select suppliers, evaluate their commercial offers, and analyze the effectiveness of concluded contracts. Suppliers are usually found by attending industry exhibitions. After selecting potential partners for a certain time, the company reviews commercial proposals, evaluates them and, if necessary, searches for manufacturers of the purchased categories of goods in other ways. The offer picture is a tool necessary for comparing several offers either for goods of the same category or for similar contracts. When using such a tool, you need to follow the “7-5-3” rule. It consists in the fact that it is necessary to conduct a comparative analysis of 5–7 proposals, selecting the 3 most acceptable ones. A contract must be signed with two companies, which will ensure uninterrupted supply;
• criteria for selecting new suppliers. This paragraph specifies who is responsible for concluding an agreement with a new supplier, what criteria are the main ones for making a decision on cooperation. The specific gravity of each of them is also indicated;
• regulations for adding data about the supplier and product to the information system. Contains information about what documents suppliers must provide when concluding a contract (this may be copies of the charter and constituent documents, price lists, catalogs, technical characteristics of goods, certificates and declarations of conformity), who processes them and transfers them to other services;
• order and procedure for placing orders. It contains rules for placing and sending orders to the supplier, examples of forms; it is specified how the manufacturer confirms the order;
• order and procedure for paying bills. This is information about in what form, in what departments and terms it is necessary to submit data on payment of invoices, what to do in case of disagreements with suppliers;
• procedure for revising existing contracts. Changing the terms of the contract may be necessary if it is necessary to reduce or increase the quantity of purchased products. This paragraph also specifies the reasons why the contract with the supplier can be terminated (quality of goods that does not meet the requirements of standards, short deliveries, concluding a contract with other companies on more favorable terms, etc.);
• handling complaints. It determines which products can be considered defective and attributed to the counterparty, as well as what to do when supplying such goods (return, replace, demand full or partial compensation, discounts, etc.). The procedure for the actions of the responsible employee in each specific situation is also prescribed;
• rules of the negotiation process. Establishes the rules for preparing for negotiations, determines who should participate in them, as well as the uniform of employees. In addition, it contains information about what negotiations can be considered successful and how to correctly draw up protocols;
• regulations for interaction with suppliers when visiting industry exhibitions, if they are present at presentations held by the organization, corporate events (determines the budget for such meetings, those responsible for their conduct and organization, the procedure for receiving funds and reporting);
• business travel rules contain information about the amount of funds allocated for them, the procedure for registration and purposes of business trips, requirements for the preparation of reports on business trips (including financial ones);
• ethical issues in supplier relations(the organization’s attitude towards bribery attempts, kickbacks, definition of the concepts “commercial gift”, “commercial information and secret”).

To correctly draw up this provision, it is necessary to prescribe the procedure for working with suppliers, to identify all the processes that in one way or another affect interaction with them.

What is the contractual work with suppliers?

To start cooperating with a manufacturing company, you must enter into a purchase and sale agreement or a supply agreement with it.

Purchase and sale is a universal legal form that regulates exchange relations and allows for its various types. Both the purchase and sale agreement and the supply agreement regulate relations in the sphere of circulation of goods, which are purchase and sale in economic terms.

An agreement concluded between two organizations may contain other sections that this scheme does not provide for, since the terms of the contract are previously agreed upon by both parties to determine the rights and obligations of each of them.

The purchase and sale agreement must contain certain clauses stipulating the terms of delivery of goods, terms for payment of invoices and rules for acceptance of products.

1. Terms of delivery and payment. They contain information about the cost, specify the payment procedure (this can be partial or full prepayment, payment after receipt) and the form of payment (cash or bank transfer), as well as the procedure for crediting funds to the supplier’s account.
2. Terms of delivery and procedure for acceptance of goods. They determine the procedure for accepting purchased products and drawing up the necessary documents. This paragraph describes the issue of ownership of the goods.
3. Responsibility of the parties. This defines the rules for filing claims in the event of delivery of goods that do not meet the requirements of regulatory and technical documentation, or in the event of delivery of goods in quantities different from those specified in the contract.

In business, the most commonly used type of obligation is supply agreement. This is the best option that allows you to regulate the relationship between two companies, one of which is the Supplier (Seller), and the other is the Buyer. Supply relationships should be built by concluding long-term contracts, rather than one-time deals for the sale of small quantities.

When concluding an agreement, enterprises must agree with each other on its terms, which will determine the content of the document. These include:

1. subject of the agreement: The supplier ships goods from the warehouse and delivers them to the customer. Their quantity, range and prices are reflected in accompanying documents (invoices or sales receipts), payment terms are specified in the contract;
2. duties of the parties: The customer must pay for the products received within a certain period from the moment the goods arrive at the warehouse (this date is indicated in the invoice). The basis for receipt of products by the customer’s representative is a one-time power of attorney. It confirms the right to receive the goods after the supplier's invoice is accepted and signed. When the goods have already been transferred, the buyer is responsible for them;
3. special conditions and payment procedure: If the order has already been received by the buyer, but has not yet been paid for any reason, then the goods are considered the property of the supplier company, and responsibility for its safety until payment is made lies with the buyer.

Sales and purchase agreements and supply agreements concluded by both enterprises (legal entities) and individual entrepreneurs. They are necessary in the conduct of business of the company and allow you to cover the entire turnover. A supply agreement is one of the types of purchase and sale agreement; it has the same economic meaning (receipt of products by one entity from another for a certain fee). These two types of agreements have the same economic content and legal characteristics; they ensure the transfer of ownership (or other property rights) to the goods.

Registration of contracts carried out as follows:

• the contract form is filled out, and all sections and details must be observed;
• the contract is registered in the accounting book, the conditions must be indicated (number, validity period, terms of delivery and payment);
• the data of each agreement is entered into a computer database (full names of the enterprises that entered into the agreement, its number and validity period).

How to keep accounting records of work with suppliers

Suppliers and contractors are businesses that:

• supply raw materials, materials, and other types of inventory items;
• provide customer enterprises with various types of services (electricity, gas, water supply, sewerage, etc.);
• perform various works (this can be maintenance, repair work, etc.).

Accounts receivable and payable- this is an integral part of the organization’s payments for the purchased goods; it can arise for all types of them.

Payment for goods to the supplier or contractor is made after the products are shipped from the warehouse, or after completion of work, provision of services, as well as directly during their implementation.

The organization itself chooses in what form to pay for the goods received or services provided. If control over the timely execution of payments is organized correctly, then contractual and settlement discipline will be strengthened, deliveries will be carried out on time and in the quantity specified in the contract, receivables and payables will be reduced, and cash turnover will accelerate. All this will contribute to the formation of responsibility among the parties for compliance with payment discipline, while the financial condition of organizations will improve.

Currently, almost all organizations have accounts receivable; they are formed due to the following objective reasons:

• an organization that has debt can use additional working capital (free);
• An enterprise providing loans can expand the sales market for its products, work performed, and services provided by concluding agreements with companies that cannot pay off immediately.

Accounts receivable are formed if the transfer of ownership from one organization to another and payment for goods (work, services) received are carried out at different times.

Accounting for settlements with suppliers and contractors is necessary in order to summarize, systematize and store information on settlements with suppliers and contractors. The database should contain information about:

• received inventory items, accepted work performed and services consumed (these include electricity, steam, gas, water supply, etc.), as well as the delivery or processing of material assets, payment documents for which are accepted and subject to payment via bank;
• inventory items, work performed and services provided for which there are no payment documents (these are uninvoiced deliveries);
• surplus inventory items discovered during their acceptance;
• transportation services received, including settlements for shortfalls and overcharges of the tariff (freight), as well as for all types of communication services, etc.

Automated method of accounting most convenient for accounting. Using it, a supplier accountant saves his time, as well as financial resources that might be needed to hire several additional employees.

If the company uses automated programs to control payments to suppliers, then the accountant can at any time see what the company’s current debt to a particular supplier is. This is the main advantage of automated systems.

Currently, all automated programs used for accounting have the following functions:

• financial accounting;
• registration of all cash transactions and settlements with suppliers;
• registration of settlements with banking organizations for loans and borrowings.

These programs can not only enter the necessary data, but also process it, display the final results, and analyze the entered information.

What criteria are used to evaluate and analyze the work of suppliers?

Work with customers and suppliers must be constantly monitored. It is recommended to analyze relationships with counterparties every 3 months (for the main categories of purchased products). The criteria by which the performance of suppliers is assessed are, as a rule, the same as those used when searching for a partner company. They are assessed in points.

Criterion 1. Assortment (they evaluate whether the company can provide the supply of all the necessary types of goods, how wide the range of products it provides, whether it works with different product groups or only one, whether the products of this company are unique).

1 – the enterprise supplies several types of goods (no more than 10%); These products are substitutes for the main range or accompanying ones.

2 – the company is interested in the assortment, but the supplier also supplies its competitor with its products.

3 – the range of supplied goods is large (more than 30%).

4 – work with the supplier is carried out for 50% of the assortment, but its products are not unique and can be easily replaced with goods from other manufacturers.

5 – the company is a supplier of absolutely all goods of at least one product group, or its products are unique and it is very difficult to find a replacement.

Criterion 2. Price (the supplier’s pricing policy, the possibility of supplying goods at the best price, freezing prices for a long time are assessed; the cost of products includes transportation costs, the risk of currency fluctuations, etc.).

1 – the cost of the product is higher than that at which its competitors purchase it.

2 – the price of products is not fixed and changes for each batch, which leads to the need to constantly negotiate with the supplier and monitor his pricing policy.

3 – prices for the supplied goods are the same as those of the competitor; you can easily predict their changes, since they depend only on exchange rate fluctuations.

4 – it is possible to get prices lower than those of competitors if you enter into contracts for the purchase of goods or use deposit programs.

5 – the price of the product is exclusive, lower than that of competitors, fixed for a long time.

Criterion 3. Terms of payment (the main advantage here is the supplier’s willingness to provide a long deferred payment, which will not affect the price of the product).

1 – the need to make an advance payment.

2 – requiring payment for goods upon receipt or providing a deferment for a period shorter than that provided by other enterprises in the industry.

3 – it is possible to defer settlement for a period comparable to that provided by most suppliers in this industry.

4 – payment can be made after delivery, the deferment period is longer than the industry average (for example, in the stationery category, the average deferment is 30 days, a good indicator would be 45 calendar days).

5 – implementation.

Criterion 4. Reliability (guaranteed maintenance of the required amount of inventory in warehouses, good logistics, the ability of the enterprise to supply goods in excess of the quantity specified in the contract with the lowest delivery costs).

1 – delivery of goods is not carried out on time (delay of up to 3 working days), and the company does not notify about this in advance; the number of items and order volume in the invoice do not correspond to the invoice; the supplier's warehouses often do not have the required goods (supply interruptions for more than 2 months); in case of non-payment of the order, deliveries are stopped the next day.

2 – the level of order fulfillment is less than 60%.

3 – there is no clear delivery schedule, orders are not delivered by our own transport, and are completed at a level of less than 70%.

4 – transport logistics are streamlined, inventories are maintained at a high level (more than 80%); unscheduled orders are not accepted; a low minimum order amount is set.

5 – the supplier’s warehouse stocks are sufficient to ensure the fulfillment of 90% of orders, logistics are streamlined – delivery is carried out every week on the agreed day; The supplier accepts unscheduled orders, delivering products by transport company the next day.

Criterion 5. Quality.

1 – in case of delivery of a defective product, the manufacturer does not replace it.

2 – defects are detected in the products of each order.

3 – the number of defects is low (no more than 1%), the supplier replaces it within a month.

4 – quantity of defects – less than 0.5% for a certain period of time (at least six months), the company promptly replaces defective products and refunds money for complaints (within 14 calendar days).

Criterion 6. Marketing support (evaluates whether the company participates in a catalogue, loyalty programs, whether joint promotions are held, sales “championships”; whether the supplier provides the necessary number of catalogues, POS materials, and trains employees).

1 – the number of catalogs provided by the supplier is not enough.

2 – the marketing program is not streamlined, product promotion campaigns are not coordinated with partners, and their effectiveness is low.

3 – the company takes part in the publication of the catalog and displays products in the online store.

4 – the manufacturer promotes its product range by holding various promotions.

5 – the supplier allocates funds to promote its products in the customer company’s assortment, actively cooperates with the partner’s marketing service, and trains its sales staff; advertising materials are provided in the required quantity.

If marketing support is not provided at all, then work with suppliers for the purchase of goods according to this criterion is assessed at 0 points.

Criterion 7. Image of the supplier (here it is necessary to analyze what place the supplier occupies in the market, as well as whether the products of its brands are recognizable).

1 – No-name products; this means that the company entered the market not so long ago (it has been operating for no more than a year and has not yet earned a reputation); or is a wholesale company that is not a manufacturer, importer or regional exclusive distributor.

2 – the company supplies products known in this category of goods and is a regional exclusive distributor.

3 – the supplier is a domestic manufacturer.

4 – a domestic manufacturer that supplies its products throughout the country and abroad, being a leader in the industry; The company's trademarks are recognizable; it also has its own private labels.

5 – the company is the absolute leader in its product category, its brand is recognizable on the international market.

Criterion 8. Service (this criterion involves assessing the efficiency of order processing, response to customer requests, professional competence of employees, completeness of the information provided, timing of replacement of defective products, compliance of supplies in terms of quantity and quality with the terms of the contract).

1 – product delivery is not carried out within the agreed time frame, product reservation is not provided.

2 – reserving products is problematic; accurate data on the availability of certain goods in warehouses at any time cannot be obtained (this information is available only at a certain time).

3 – when delivering goods, not all necessary documents are provided, hygienic certificates for some products are missing, and replacing documents takes a lot of time.

4 – the company warns about possible supply interruptions and gives preference in the distribution of “scarce” products.

5 – the supplier provides additional services (applies a logo to goods, provides analytical data on purchases).

Criterion 9. Remoteness of the supplier (this criterion is important if products are removed from warehouses directly by the customer’s transport, as well as when delivery is paid separately by the buyer; in this case, when assessing the cost, it is necessary to add delivery costs per unit of goods to the price of the product; the remoteness of the supplier also affects reliability supplies. Working with local suppliers is more profitable).

When evaluating work with suppliers of services and goods, it is necessary to take into account that different criteria have different weights. The score for each criterion must be multiplied by a correction factor, which is established based on the importance of this factor:

• assortment, price - 2;
• terms of payment, reliability - 1.5;
• quality, service - 1.25;
• marketing, supplier image - 1.

Based on the assessment results, the supplier is assigned the status:

• key supplier– this is an enterprise that produces or imports products of trademarks to which it has exclusive rights; such a supplier works with the customer on special terms (ideally exclusive); supplies are reliable;
• convenient supplier– provides goods at the same prices as direct competitors; supplies are reliable;
• backup supplier – an enterprise that produces products in the same range as the key supplier and has its own brand; orders are placed when it is impossible to purchase goods from the main supplier; An important evaluation criterion here is the speed of delivery of the order, and the price is not of paramount importance.

4 rules for working with suppliers correctly

In order for a business to be profitable, work with suppliers in an enterprise must be properly organized.

There are certain rules, which the supplier relations department must comply with when carrying out its activities.

1. The order must clearly indicate what, in what quantity and within what time frame must be delivered.
2. The supplier must have the appropriate product range to perform the required work.
3. The supplier's responsibilities must be clearly defined to avoid disputes.
4. Overall success depends on establishing a contract with the supplier.

In the West, a store’s work with suppliers is based on the fact that the basis for successful production of goods is established relationships between the enterprise and creditors and suppliers.

When organizing supply chain logistics, you need to follow the rule: companies in the same supply chain should not compete with each other. Their competitors are organizations operating in other supply chains. Based on this rule, several principles building relationships with suppliers:

• interaction with counterparties should be carried out in the same way as with the organization’s clients;
• Suppliers should be treated in the same way as the company's clients;
• it is necessary to show the supplier a commonality of interests;
• It is very important to exchange information about tasks and business operations;
• if the supplier has problems, you need to be ready to help resolve them;
• it is mandatory to fulfill all undertaken obligations;
• the interests of the supplier must be taken into account;
• it is necessary to maintain contacts with partner organizations in the business sphere.

What are the pitfalls of working with suppliers of goods?

In order for an enterprise to function successfully, it is necessary to be able to properly organize work with suppliers and avoid the risk of financial losses in the event of a counterparty’s refusal to supply products for which an advance payment has already been made. If the supplier is dishonest, he may not return the funds transferred to his account. In this case, you will have to sue him, and the money will be returned, but only after a long period of time. What can a supplier relationship manager do to avoid such unpleasant situations?

The guarantee can be the use of a letter of credit settlement system. It assumes that the supplier can withdraw funds from his bank account only after documents are provided confirming that the customer has received all paid goods. If the supplier is unscrupulous, he may refuse to use this financial mechanism without explaining the reasons for the refusal.

There is also a risk that the product may be damaged during shipment or delivery. This problem can be eliminated by competently organizing the acceptance of products, carrying it out before the documents on the transfer of goods are signed.

Expert opinion

How to reduce risks when working with suppliers

Dmitry Shiryaev,

Head of Judicial Practice, Auditing and Consulting Group "Ural Union", Moscow

To eliminate technical risks and be able to distinguish unscrupulous suppliers, you need to follow the following recommendations.

• Check whether the terms of delivery of the goods are indicated in the contract. It must be indicated within what time the supplier undertakes to deliver the order, whether an advance payment is required and in what amount. If this is specified in the contract, then in case of failure to comply with its terms, it will be possible to terminate cooperation with this organization. To avoid any disagreements, it is recommended to clarify which days are taken into account when determining delivery dates (calendar or working days).
• Notify your partner in writing of your intention to terminate the contract, citing the reason for your actions. It is advisable to indicate in the contract the terms within which notifications should be sent. The grounds for termination of cooperation may include not only delivery failure or inadequate product quality, but also, for example, delay in payment. If partner companies conduct business correspondence by e-mail, then it is necessary to record the mailbox addresses in the agreement and indicate that correspondence on the Internet is official, even if the companies do not use an electronic digital signature.
• Require the actual address of the company to be indicated in the contract. If, due to incorrectly specified coordinates, the letter does not reach the recipient, the contract may still be terminated.

Information about the experts

Boris Tsirkin, Managing Partner, KASKAD Family. Boris Tsirkin graduated from the Russian Economic Academy. G. V. Plekhanov. Certified Professional from the Commercial Investment Institute (CCIM). Since 2010 - managing partner of the KASKAD Family company. KASKAD Family unites six companies providing a full range of services in the suburban real estate market of the Moscow region. Founded in 2008. Staff - 190 permanent employees and 450 temporary. The portfolio of customers includes: JSCB Investtorgbank, CB Otkritie, Coalco, Orion Property Fund, Sekisui House and others.

Mikhail Krapivin, Managing Partner, Verity Advisors, Moscow. Mikhail Krapivin is a graduate of MGIMO and the University of Chicago (Master of Public Policy). Has extensive experience in consulting. Prior to joining Verity Advisors LLC as Managing Partner, he created and led the corporate intelligence team at a Big Four accounting firm, where his clients were primarily Fortune 100 companies operating in the former Soviet Union. Associate member of the Association of Certified Theft Investigation Specialists. Verity Advisors LLC was founded in 2008. Provides services in the field of risk management. Official website -www.verityadvisors.ru

Dmitry Shiryaev, head of the judicial practice department of the auditing and consulting group “Ural Union”, Moscow. AKG "Ural Union". Field of activity: audit and consulting services. Number of personnel: 90. Annual turnover: more than 311 million rubles. (in 2013). Place in the ranking: included in the top 40 auditing and consulting groups (according to Expert magazine, 2013). Main clients: Volgotanker, Oboronservis, Rosnefteflot, Satori, Slantsy plant.

Important problems of purchasing activities are: determining the optimal number of suppliers, searching for potential suppliers and selecting the optimal, most qualified one. An organization may work with a single supplier. This option provides the following benefits:

Desire to achieve strong relationships;

Price discounts when placing large orders;

Easier communications and procedures for regularly placed orders;

Smaller range of deviations in the characteristics of materials and their supplies.

Typically, organizations deal with multiple suppliers of the same material. The benefits of using multiple sources of materials are:

Competition between suppliers leading to lower prices;

Reducing the likelihood of supply disruptions;

Providing access to more information;

Easier to meet changing demand.

There is a saying in logistics that a bad supplier can cause many more problems than bad materials. Therefore, most organizations maintain a database of competent, reliable suppliers. However, a new product often requires new suppliers. Selecting suppliers of a specific type of material resources includes the following actions: searching for potential suppliers, analyzing identified suppliers, assessing the results of working with selected suppliers and establishing their rating.

In the process of searching for potential suppliers, a logistics manager can use the following methods:

2. Visiting exhibitions and fairs, trade missions, congresses and seminars to establish direct contacts.

3. Announcement of a competition (tender).

4. Written negotiations between supplier and consumer.

5. Public opinion poll (banks, trade organizations, analytical and information agencies, government supervisory authorities).

The incoming information makes it possible to analyze suppliers based on special criteria that allow the selection of acceptable suppliers. The number of criteria can vary from one to several dozen. Everything depends on the strategic and tactical goals of the organization, which itself determines these criteria. The most important criteria for choosing a supplier include: price and quality of supplied materials, conditions and service, that is, reliability and stability of supplies. These factors affect the profit of the producer (consumer). In addition to them, the following supplier parameters are used in the analysis:

Order fulfillment time and its stability;

Share of on-time deliveries and share of products in stock;

Possibility of warehousing and forwarding of products;

Ease of order placement and communication;

Technical specification and quality specification;

Past experience with the supplier.

When receiving the same criteria from several suppliers and to obtain the most favorable delivery conditions, additional criteria can be used:

Financial conditions - the supplier's ability to provide payment in installments and price discounts;

Dislocation (proximity of the supplier), after-sales service and user training;

Providing equipment with spare parts, returning substandard goods;

Availability of reserve capacity and storage facilities at the supplier;

Competitiveness and level of equipment and technology used;

Level of organization of product quality management at the supplier;

Financial stability of the supplier, confirmed by an independent auditor;

The image (reputation) of the supplier in the eyes of the public, his friendliness, ability to cooperate and long-term partnerships;

Level of risk and absence of negative impact on the environment;

The level of qualifications of employees, their social status, the psychological climate in the team and the risk of strikes at the supplier.

One of the most effective forms of selecting the optimal supplier is competitive bidding (tenders). They are carried out with the aim of purchasing a large batch of MP or concluding a long-term supply contract. Suppliers wishing to participate in the competition send a package of proposals for the supply of MR to the tender committee, which considers these proposals in a closed meeting. After its completion, the winner of the competitive bidding is announced and receives a supply contract. The participant who presents the most favorable delivery conditions is recognized as such.

When choosing a source of purchase (supplier), you should also remember the type of transport and the carrier, if, according to the contract, the obligation of delivery is not assigned to the supplier. As a result of the analysis of potential suppliers, a list of specific suppliers is formed with whom work is being carried out to conclude contractual relations. A list of suppliers is usually compiled for each specific type of materials supplied. After this, all that remains is to establish contact with the relevant companies and obtain from them proposals on price and delivery time.

Lecture No. 12.

Types of procurement.

State procurements.

Government procurement is generally no different from procurement by industrial companies.

Public procurement objectives:

Guarantee of supply to meet service needs;

Reduce duplication and waste by standardizing products;

Maintaining and improving quality standards of purchased goods and services;

Maximize savings through best procurement practices with internal efficiencies;

Purchasing at the lowest life cycle costs, ensuring quality and meeting supply requirements.

Characteristics of public procurement (source of authority - civil servant, his powers, position and status in accordance with the constitution and regulations of municipal authorities):

It is difficult to make changes in the public procurement process;

Budget restrictions;

External pressure;

Support from government programs;

Limited formal verification;

Lack of delivery skills;

Salary level;

Lack of confidentiality (everything is open);

Competition of commercial proposals.

International procurement.

The main reason for using international suppliers is the possibility of achieving a more reasonable price than when purchasing from domestic suppliers (or supplier exclusivity).

PRICE. Price/cost ratio (price/quality);

Companies strive for low labor costs;

Favorable exchange rate;

Efficiency (processes and equipment);

Pricing for the purpose of making a profit (carrying out a pricing policy for export products to make a profit at the appropriate volume);

Quality (quality level may be more preferable);

Lack of goods on the domestic market;

Expedited delivery and continuity of supply;

Improved technical service (higher technology, marketing;

Competition (pressure on domestic suppliers).

Problems when working with international suppliers:

Search and evaluation of the source;

Delivery time;

Forwarding;

Political and labor issues;

Currency fluctuations;

Payment Methods;

Quality;

Refusal to accept goods (obligations of both parties);

Tariffs and duties;

Costs associated with paperwork;

Legal problems;

Transportation;

Cultural and social customs.

Non-traditional types of procurement:

Fixed goods belong to the group of fixed assets (fixed assets) of the enterprise;

The main difference between purchasing services and purchasing goods is:

1) impossibility of storage - this means that the time of provision of the service must coincide with the specific needs of the buyer and that the consequences of lateness can be very serious and expensive;

2) difficulty in assessing quality;

1) components that were previously manufactured at the enterprise, and are now ordered from external sources (for example, a large manufacturer of household appliances that sells microwave ovens, but no longer produces these products, buys assembled microwave ovens under its own brand);

2) goods sold through the retail network, such as clothing sold in large department stores, food products sold through supermarkets, etc. Such purchases are usually carried out by merchandisers, who must first predict the further demand for these products, on the basis of which decisions are made purchasing decisions.

Lecture No. 13.

Implementation of purchases.

The main questions that should be answered in the process of providing an enterprise with objects of labor are traditional and determined by the logic of supply:

v what to buy;

v how much to purchase;

v from whom to purchase;

v under what conditions to purchase.

Logistics adds its own questions to the traditional list:

v how to systematically link procurement with production and sales;

v how to systematically link the activities of an enterprise with suppliers.

The designated range of procurement logistics issues determines the composition of the tasks to be solved in this functional area and the nature of the work performed.

Let's consider the tasks and work related to purchasing logistics:

1. Determining the need for material resources. In the process of determining the need for material resources, it is necessary to identify intra-company consumers of material resources. Then the need for material resources is calculated. At the same time, requirements are established for the weight, size and other parameters of deliveries, as well as for delivery service. Next, plans are developed - schedules and specifications for each product item and (or) product groups. For consumable material resources, the “make or buy” problem discussed in paragraph 2.1 can be solved. this paragraph.

2. Procurement market research. Procurement market research begins with an analysis of the behavior of the supplier market. In this case, it is necessary to identify all possible suppliers in direct markets, substitute markets and new markets. This is followed by a preliminary assessment of all possible sources of purchased material resources, as well as an analysis of the risks associated with entering a specific market.

3. Selection of suppliers. Includes searching for information about suppliers, searching for the optimal supplier, evaluating the results of working with selected suppliers (the task of selecting a supplier is discussed in more detail in paragraph 2.2 of this paragraph).

4. Procurement. The implementation of this function begins with negotiations, which must end with the formalization of contractual relations, that is, the conclusion of a contract. Contractual relations form economic relations, the rationalization of which is also the task of logistics. Procurement includes choosing a procurement method, developing delivery and payment terms, as well as organizing the transportation of material resources. At the same time, delivery schedules are drawn up, forwarding is carried out, and customs procedures are possibly organized. Procurements are completed by the organization of receiving control.

5. Supply control. One of the significant tasks of supply control is supply quality control, that is, taking into account the number of complaints and defects. Supply control also includes tracking delivery times (number of early deliveries or late deliveries), tracking order processing times, transportation times, and monitoring the status of inventories of material resources.

6. Preparation of the procurement budget. An essential part of procurement activities is economic calculations, so it is necessary to know exactly how much certain works and solutions cost. In this case, the following types of costs are determined:

· costs of order fulfillment for the main types of material resources;

· costs of transportation, forwarding and insurance;

· cargo handling costs;

· costs of monitoring compliance with the terms of the supply agreement;

· costs of acceptance and verification of material resources;

· costs of searching for information about potential suppliers.

As part of economic calculations, the tasks of purchasing logistics should include the calculation of costs due to a shortage of material resources.

7. Coordination and systematic relationship of procurement with production, sales, warehousing and transportation, as well as with suppliers. This is a specific task of purchasing logistics, which is solved, as noted above, by organizing a systemic relationship between purchasing and production and sales, as well as close ties with suppliers in the field of planning, economics, engineering and technology.

Lecture No. 14.

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Supplier reliability is an important component of a company's success and sustainability. Especially in a crisis. We will define the principles for forming a portfolio of suppliers, analyze the role of suppliers in our production, formulate requirements for the supplier, and discuss some anti-crisis measures.

To manage procurement competently, we need to answer 4 questions:

1. what do we buy,
2. where do we buy,
3. from whom and under what conditions,
4. how we will buy in the future.

Creating a quality product requires not only supplier selection and evaluation, but also supplier management. Supplier management is the creation and management of a portfolio of suppliers.

Phases of market development and principles of interaction with the supplier.

In the early stages of the market, only one thing was required from supply - the constant availability of the necessary goods. Later they began to demand a minimum price. Then the time came for quality and additional service. Relatively recently, many markets, in particular the market for electrical products, have entered a phase of development that requires the creation of competitive advantages together with suppliers. That is, now we are talking about real partnership.

The highest form of partnership is the form in which the supply chain of three to four companies is a single logistics system - vertical integration. Unfortunately, I cannot give a specific example in Russian business. Such an example could be, suppose, the integration of a development company, a manufacturer of electrical installation products, a transformer manufacturer, a testing laboratory and an engineering company. Or this chain: manufacturer of cable products - manufacturer of electrical installation products - manufacturer of lighting products. In another area, it could be the following chain: fiber manufacturer - fabric manufacturer - clothing manufacturer - retail chain of clothing stores.

This form of partnership will truly improve the competitiveness of all enterprises in the value chain. For example, the only advantage local producers have over imports is the ability to produce more of what sells, at a lower price, faster than importers, and stop making what doesn't sell. In such an association, it is possible to exchange information on sales and production plans in order to reduce inventory and reduce the time for developing new products, actually reduce the time it takes to complete customer orders, etc.

To determine your own supplier strategy, you need to complete several stages of work. Let's look at one specific example.

We have already talked about a company in which changes began with the reorganization of internal supplies and warehousing. The second step was to create a portfolio of suppliers and develop a supply management strategy.

Step 1. Analysis of the range of purchased products.

To begin with, we analyzed the range of purchased materials and divided them into the following categories:

1. Non-critical for production/sales - those materials that can be easily replaced with analogues and the absence of which will not lead to a stop in production or loss of customers;
2. Basic materials for production/sales. These include, among other things, consumables for equipment;
3. Problematic materials are materials from the basic category that are difficult to purchase, transport, store, process (for example, scarce, perishable, dangerous, requiring special conditions of transportation and storage, etc.);
4. Strategic materials are those most significant, high-margin materials that will now and in the future be the main ones that will be used to make the main product currently in development.

Step 2. Determine the role of the supplier in the production process.

Figure 1. Dependence of the role of the supplier on the role of materials

Step 3. Determine the characteristics of a good supplier in different categories.

Then we determined what basic requirements this or that type of supplier must meet:

Regular supplier

There were quite a lot of non-critical materials. The frequency of deliveries was different: one-time, regular, and periodic. They accounted for about 40% of operations for processing and accepting orders. Therefore, the following requirements for suppliers were adopted:

1. ease of working with it: minimal delivery lead time (from the moment of ordering to the arrival of the goods), mandatory delivery by the supplier according to an agreed schedule, convenient packaging, for multiple deliveries per month, registration with a single invoice and package of documents, etc.
2. standard quality and low prices
3. expedient cooperation on contractual obligations.

In this case, the optimal number of suppliers for one type of product was chosen by 2 suppliers with a 50:50 division of the purchase volume between them. To be on the safe side, the purchasing manager will have to periodically monitor the market and have 2 more insurance suppliers in case it is necessary to “intercept” the goods.

In a crisis situation, non-critical materials become the first candidate for cost reduction. Carefully analyze the entire range and determine which products can be discarded, which ones can be replaced with cheaper analogues, and for which products the quality requirements can be reduced.

Qualified supplier

Basic materials are the most expensive part. The frequency of deliveries is, in most cases, regular. Any delay in the supply of materials or poor-quality components may result in a production stop. To compensate for this, it is necessary to keep very large safety stocks, which seriously increases costs. When materials with hidden defects enter production, they lead to defects in finished products and customer complaints. Therefore, the following requirements for suppliers of basic materials were adopted:

1. Reliable supply: strict adherence to agreed deadlines, accuracy of packaging, reservation of materials at the supplier’s warehouse, delivery by the supplier
2. Stable product quality, in addition, the supplier undertakes the functions of checking the quality of products and guarantees quality control
3. Mandatory deferment of payment. At the same time, the ideal period was considered to be the availability of an investment resource of 7 days (i.e., from the moment when the raw materials are already shipped to the client in the form of finished products and money is received for them, 7 days remain until the accounts payable are paid).

At the same time, it was determined that the number of suppliers for one type of product will also be 2 (in some cases 3) with the distribution of the volume of purchases between them 70:30, i.e. one is the main supplier, the other is a backup. Here, market monitoring should be carried out constantly, but the main emphasis is on developing partnerships with selected suppliers. And therefore, it is extremely important to take the assessment of the supplier seriously when choosing one. Changing a supplier can be very costly for a company.

In a crisis, focus... on the future. Assess all the resources you have: customers, suppliers, warehouse, goods, technologies, equipment, personnel, etc. Conduct an analysis of changes in the market and make your forecast for the development of the situation in your market, in the supplier market and for you. You need to determine what you have that is unique and what you have that you will need in the future. It is necessary to get rid of everything that you do not need, even if you once paid dearly for it. If the company does not have an investment resource, leave only the minimum of materials that are extremely important for survival and that customers need.

Reliable supplier

There weren't many problematic materials. But the risks and costs were very high. Among them were also goods that had to be purchased in large quantities from China due to periodic shortages on the Russian market, wait a long time for delivery and store for a long time. Problem materials accounted for 24% of costs and 18% of production downtime.

After analyzing all types of problems, it was decided that suppliers of problematic materials must meet the following requirements:

1. Willingness to carry out joint programs to optimize supplies: change shipping standards, packaging quality, frequency of deliveries, take care of increasing product safety, safety of transportation, storage, and processing.
2. A joint focus on value creation, including the ability and willingness of the supplier to take over part of the processing process in-house, as well as train workers and operators in the proper handling of raw materials, provide technological consulting and support.
3. Proximity of the supplier. For remote suppliers - the presence of distribution channels or regional warehouses close to our production; or providing such a loan term, even in several tranches, which will be repaid at least at the time of processing of the purchased raw materials.
4. Long-term contracts.

For almost all problematic materials, it was decided to choose one supplier, who had previously shown not only partnership intentions, but also a readiness for integration. This is the preferred supplier. Joint programs require a lot of time and effort from both parties. And opportunistic relationships and pressure on the supplier are not suitable here. In the event of force majeure, the market should be regularly reviewed to determine the availability of an insurance provider for a one-time purchase of a one-time volume.

What to do with accounts payable if solvency is low? Shift all payment delays to goods that do not bring in either profit or money in circulation. Pay on time only for items of greatest importance, selected from the categories of essential, problem and strategic materials. Do not immediately pay those suppliers whom you replaced or removed from the product line. Pay those suppliers you cannot do without and who have demonstrated their resilience and loyalty.

Strategic supplier

Strategic materials are those materials whose contribution to value creation is quite high now and in future key, highly profitable products; they have a certain share of costs in total costs and a high participation in creating profits. Such materials turned out to be about 12% of the entire range. After a thorough analysis of all problematic situations with such materials, as well as development plans/new product development and supply programs, the following requirements for a strategic supplier were determined:

1. Readiness for system integration and coordinated business policy based on technology already available at the enterprise
2. Optimal organization of your own production thanks to good cooperation with your subsuppliers
3. Availability of sufficient funds to carry out research and development work, focus on innovation
4. Willingness to accept market risks.

After analyzing the supply market, it became clear that virtually no supplier meets these requirements. It was decided to select one supplier that is closest to this portrait for its further development and cooperation. Transfer 70% of the volume of purchased products to this supplier, and leave 30% to a qualified supplier. In the future, transfer the entire volume to it, but only when the company is absolutely confident in the high degree of reliability and partnership.

During a crisis, you can see how well the supply strategy was defined, and whether the choice of supplier was carefully carried out in the previous period. It is the performance of existing problem and strategic materials suppliers that will reveal the quality of your supplier selection and supplier management process. And right now we need to work especially hard and carefully to change the business system. Previous methods were growth-oriented. Now the situation has changed fundamentally and new, high-quality, low-budget forms of relationships, other processes and technologies are required. It is necessary to build a system that will allow the business to survive now and become the basis for future growth. You shouldn’t wait for spring and quietly watch what will happen, or think that the crisis will have little impact on you. Already, quick, decisive and methodical action is required, which does not end only with budget sequestration.

Step 4: Supplier portfolio analysis and assessment.

After identifying the profiles of a good supplier depending on its role, a thorough analysis of all available suppliers was carried out to select the main suppliers in order to optimize the entire portfolio. The entire list of suppliers used consisted of 211 companies. However, only 98 of them were used fairly constantly, and only 56 did not have serious complaints about their performance. The distribution of procurement volumes between suppliers was random, no long-term contracts were signed, and the performance of suppliers was not assessed, with the exception of recording complaints. For some materials, complaints were made against all suppliers, and therefore we additionally conducted a market analysis, expanding the lists of potential suppliers by type of product (long list).

After defining the role of materials and the role of suppliers, it was decided to gradually reduce the supplier portfolio to 114 companies (see Figure 2 for the supplier selection process).

To select suppliers, a mechanism was created for selecting and evaluating suppliers for all categories and types of goods. Of all the methods, the weighted assessment scheme was chosen as the basis.

An example of using a weighted scoring scheme:

For example, for one type of raw material the quality factor was identified as the most important. We also chose two other parameters - price and service, less important, but significant. It was determined that the supplier rating would be assessed on the assumption that quality is 50% of its original value, and price and service are 25% each.

Selected point system:

Quality - subtract the percentage of rejected items from the original 100

Service - For each delayed delivery, deduct 5 points from 100

Price - calculates the lowest price index based on known data as a percentage of the price actually paid (divide the minimum known price by the actual price paid and multiply by 100)

In the last quarter, the supplier delayed deliveries 5 times, the minimum price for that period was 95% of the price paid, and 12% of the delivered products were rejected. Evaluated according to the following scheme:

Quality: 50%×(100-12)=44.00

Maintenance: 25%×(100-25)=18.75

Price: 25%×95=23.75

_________________Total: 86.50

When evaluating other suppliers according to this scheme, this supplier took 3rd place in the ranking.

It should be noted that in each category of materials (non-critical, basic, problematic, strategic) there were individual evaluation parameters defined for different types of products, which depended on the degree of importance of the product in the line of purchased products and on the degree of development of the supply market. For example, the requirements for cable and plastic suppliers were different.

Figure 2. Supplier selection and evaluation process

Step 5. Work with the supplier.

Next, meetings were held with all suppliers who were on the short list. They were informed about the requirements and the most important aspects of the interaction. A kind of trial period was proposed for another quarter (according to some materials - 1 month), after which a decision will be made on the volume and timing of contracts. All suppliers were given performance feedback and their ranking among other suppliers was reported. As a result of this work, the number of suppliers was reduced within 2 quarters to the selected value. And claims regarding delivery quality (deadlines, packaging, product quality) decreased on average by 34% in just the first quarter.

Now it is necessary to carry out serious work with key clients and suppliers. Jointly determine sales and purchase forecasts, opportunities and market conditions of clients and suppliers, openly discuss the situation and financial condition. Such meetings should be made regular. It is very important to take criterion measurements and monitor the dynamics. Only such joint and open efforts will allow us to stay afloat and quickly start after the crisis bottom.

Introduction

The importance of choosing a supplier is explained by the functioning in the modern market of a large number of suppliers of the same material resources and goods. The large number and variety of potential suppliers of required goods leads to the fact that special attention is paid to the problem of choosing those that could ensure the successful operation of the enterprise with the greatest effect. At this time, there are quite a lot of companies offering their services for the supply of this or that product, and choosing which supplier is better is not an easy task.

The problem of this study has relevance in the modern world. This is evidenced by frequent examination of the issues raised.

The topic “Analysis, evaluation and selection of suppliers of products of a trading organization” is studied at the intersection of several interrelated disciplines, such as: Economics, Commercial activities, Organization of logistics and sales, Fundamentals of marketing and entrepreneurship. The relevance of this work is due to the great interest in the topic in modern science. Consideration of issues related to this topic is of both theoretical and practical significance.

The purpose of this course work is to analyze the selection of suppliers. To achieve this goal, it is necessary to solve the following tasks:

1. Explore the concept of the supplier selection process.

2. Identify the main methods for selecting suppliers.

3. Using a practical example, consider the process of selecting suppliers

4. Conduct analysis and selection of suppliers at a specific enterprise.

5. Study the role of the procurement service in the activities and development of the enterprise.

The methodological basis for developing the topic of the work is the works of domestic and foreign academic economists, as well as general scientific methods. This work used such literary sources as “Supply and Sales Activities” edited by T.N. Baybardina, I.I. Grishchenko, L.I. Starovoitova; “Commercial activity” edited by S.N. Vinogradova and O.V. Pigunova, “Organization of commercial success. Expert advice" Krepky L.M. with the help of which the basics of organizing the selection of suppliers and assessing the effectiveness of their work are considered. The regulatory legal acts of the Republic of Belarus were also used, which describe the basics of work on the selection, assessment and analysis of suppliers at Belarusian enterprises. These are documents such as the Civil Code of the Republic of Belarus, Regulations “On the procedure for selecting a supplier when carrying out public procurement on the territory of the Republic of Belarus”, Decision of the Minsk City Executive Committee dated January 6, 2009 No. 26 “On some issues of procurement of goods (works, services) )", as well as many others.

1. The importance of analysis, evaluation and selection of product suppliers for the effective operation of a trading organization in modern conditions.

1.1 Organization of economic relations and contractual work in trade.

In the conditions of the establishment of market relations and the improvement of the legislation of the Republic of Belarus, the opportunities for full-fledged economic activity of trade and service enterprises are expanding. Legal and business vein sa The independence of enterprises and their economic freedom provide the enterprise apparatus with wide scope for commercial initiative, independence in decision-making on issues of commercial relations, and the use of financial and credit mechanisms. Employees of commercial services independently regulate the structure of economic relations on a permanent contractual basis and independent commercial initiatives in the domestic and foreign markets.

The organization of economic relations between suppliers and buyers of goods is a broad concept. This includes economic, organizational, commercial, and mini-traditional-legal, financial and other relations that develop between trading enterprises and suppliers in the process of supplying goods . The basis for the successful organization of economic relations is the organization of contract work. Contract work is one of the main areas of legal work of an enterprise and other business organizations, aimed at the formation and implementation of regulations. Business contracts should be considered among the most typical individual legal acts, in connection with the formation of which extensive and important legal work is carried out at the enterprise.

A properly executed agreement itself acquires the force of a legal act that determines the subsequent actions of the parties.

Timely and high-quality execution of the contract is largely ensured by measures established by law and agreements of the parties.

Thus, contract work is the activity of an enterprise in forming and legally consolidating contractual relations and organizing the execution of contracts.

A contract is an agreement between two or more persons to establish, change or terminate their rights and obligations. Contractual work usually includes the following stages:

· Preparation for concluding contracts;

· Development, coordination and acceptance for execution of acts of planning economic relations in cases where relations in this part are regulated by the state;

· Registration of contractual relations;

· Bringing contractual obligations to the services involved in the execution of a specific contract;

· Monitoring the execution of contracts;

· Evaluation of the results of contract execution.

The system of economic relations between trade and industry is the most important component of the economic mechanism, representing the total b f format, methods and levers of interaction between enterprises, about b unions, irms, sectors of the economy with consumers of products. Thus, the main place in the economic relations of trade belongs to intersectoral relations with industries producing consumer goods; for the supply of these goods, the establishment of such relations through the mediation of trade allows for the sale of their products and their mutual exchange, stimulates and determines the further development of production. Within these connections relevant industries, based on trade requirements and in accordance with their production and financial capabilities, produce goods and supply them to the sphere of circulation. At the same time, trade has the opportunity to influence the industries producing goods in many respects, including in terms of volume, assortment, quality, and ensure their delivery to the final consumer.

The overwhelming majority of economic ties represent by myself concluding agreements with suppliers for the supply of goods within a specified period. The essence of such economic relations is complete freedom in the sale and purchase of goods by enterprises, sellers and buyers. But any trading company prefers to deal with an established circle of suppliers and tries to conclude long-term contracts with them, with the possibility yu their extension.

IN ra m kah annual economic relations, a clear order of relationships between specific supplier enterprises and buyers for the supply of goods is determined in advance