What are the logistics of public procurement?
Public Procurement logistics are processes used in the delivery, acceptance, movement and storage of materials purchased for a company or organization. In most manufacturing or distribution companies, logistics are awarding public procurement of the backbone of the company. The primary concepts surrounding the logistics of public procurement are aimed at minimizing costs and increasing services. Logistics of public procurement usually form the main part of the contract with material suppliers. Items included in this part of the purchase contract include minimal and maximum order size, delivery requirements, delivery expectations and postponing placement. However, companies that negotiate contractual decks with high value may try to minimize these hidden costs through different strategies. For example, the delivery of just-in-time is that the supplier stores and send the goods according to the set plan. The contract guarantees a specific volume of materials in each order. If the customerIt decides to store the materials, the price per unit can be agreed lower, as these costs will not be formed by the supplier.
The transport of raw or processed materials from around the world is very expensive. Some companies use a specialized logistics company as a broker to control material flow and minimize costs. For example, a steel plant in China with a Canada contract can send the entire order to the storage space in the United States, managed by a broker. Because the customer confirms the quantity, the intermediary issues materials for sending to Canada. Shipping costs for manufacturers are smaller, although the services of brokers are additional costs.
People working in orders logistics are usually train -old in both disciplines. A fixed understanding is required to create proposals, control contracts and determine all possible options. Contract negotiation skills are often developed in the position of public commissioningCHLICKS, but it is not necessarily used in logistics.
, regardless of industry, is the driving factor behind all logistics initiatives for public procurement's desire to reduce costs and minimize production disruption. The inability to arrive as planned can easily lead to a complete stop of all work. Small savings in storage costs are more than lost wages and overhead costs during the period without production. With all decisions, there is a level of risk and logistics of public procurement is a method of minimizing known risks.