procurement logistics

Procuring includes all logistics operations that may take place before the actual production. Raw materials, materials and components must be procured. The logistics is working closely with the purchasing department. After ordering the goods the incoming goods pass through the inbound warehouse or department and from there up to the work of production.

 

The procurement of logistics is focussed on the issues of optimal order quantity and order cycle. There is the possibility to proceed by ordering point or ordering schedule to. The decisive factors are the quantity and / or time.

 

Procurement logistics is oriented in the proceedings of the optimal order quantity, inventory levels are monitored and if they fall below the specified safety stock the corresponding supplier is notified and the goods will be ordered. The advantage of the logistics result from the optimal order quantity. Thus, the capacity of the truck can be exploited as possible, so that transport costs are minimized and the truck does not have to drive half empty.

 

When aligning to an ordering schedule the order the order will be placed after a certain amount of time, such as on the 15th of the month or quarterly. The advantage here lies in the fact that the supplier can plan precisely, because the order is always initiated at the same time with him. Unclear, however, is the amount that is ordered. It depends on the demand of the product by the customers. In some months the demand is high and in some it is low. As a result, the utilization of transport capacity is affected, because it may happen that the supplier has to load only half the truck. This increases usually transport costs and also in relation to the issue of sustainability CO² balance of transport deteriorated.