Текст ВКР (Управление закупочной деятельностью предприятия), страница 13

There are several methods how to choose the supplier.

The first method is the method of the dominating characteristics. Suppliers are compared by the unique criterion. It could be price, delivery or goods quality. The second method is the rating estimates method, which allows comparing suppliers with different characteristics. Each criteria has its own score and expert’s rating. All the suppliers’ scores are summarized. The third method is dynamic estimates method, which allows comparing such criterias as rate of growth, rate of delay, rate of defective goods. The fourth method is “method of mission”. All the supplier’s costs are summarized, and then suppliers’ are compared. Company could summarize marketing costs, delivery costs, insurance costs. The fifth method is about department’s preference. The sixth method is based on the supplier’s accounts.

Now let’s speak about “The Russian cosmetics” company. The organization was found by Kubko Aleksey Ernstovich in 90’s.

The company is one of the largest wholesale companies in the Russian Far East. The geography of cooperation covers the territory of Khabarovsk Krai, the Amur region, the Sakhalin region, Primorsky Krai.

The Russian Cosmetics trading company is an official distributor of the majority Russian producers. Thus, the client has an opportunity to acquire all goods from one wholesaler.

The company's primary activity is wholesale trade of household chemical goods, cosmetics, elite perfumery, personal hygiene goods. The range of the presented goods contains more than 10 000 positions.

Consumers of the company are the individual entrepreneurs, limited liability companies, large hypermarkets like Samberi (Nevada Vostok), Ambar, Super Good, NK City. Competitors of the company are two firms: Ayuss Company and Sanvey.

Kubko’s company has 7 departments: finance and accounting, warehouse department, transport department, regional sales, sales representatives’ department, supply, caretakers’ department. Each department has its own head.

The total quantity of workers is 96 men: 38 female and 58 male.

Now let’s analyse the procurement process in the company. The first step is the same as in theory - identifying needs. There can be two different situations: when the supplier draws up a plan about quantity in the contract or there is no fixed plan of purchase, managers plan procurement by themselves. Usually they use 1C programme. Unfortunately, computer programme can not predict such factors as changing in demand or seasonality.

For example, there are products which are used in particular time. It could be shoes cleansers which are used in fall or spring in a big quantity. So, the manager should make a decision about increasing procurement of these products in off-season. Also seasonality influence on such products as insecticide. If the summer is droughty, there are no mosquito, so insecticides are not in popular demand.

By the way, when the manager plans procurement, he should take into account the commercial, which increases the demand on 30-50%. So, there should be enough stock.

The next step in the procurement process is to send request for goods to the supplier. Usually managers use e-mail. In many cases Kubko’s company pays lump sum, because it gives advantages and bonuses from supplier, for example – 2-5% discount.

Purchase order is confirmed after payment. The manager forms cargo container and ships it. Ususally it takes 14-21 days to get to Khabarovsk.

Kubko’s company uses several shipping company, such as «TransKontejner», «Stim TransAmur», «Rejl Kontinet», «Ekstra», «Svetlana- K», «ZhelDorEkspediciya».

When freight gets to Khabarovsk, the transport company informs the customer about it.

The commodity researcher comes to station and checks the locking device. The commercial statement is drawn up in case of damage of freight. The goods are delivered by transport company to a warehouse after unloading. Loaders unload the vehicle, and inspectors and warehouse workers draw the documents.

It is necessary to quote wholesale price after delivery. It consists of product cost, transportation costs (8%), expenses of the company (utility payments and a salary, it is about 14-15%). It is necessary to make a margin (varies from 5% to 20%). The discounts are included also in the selling price.

In a general the purchasing department divides all of the goods into the five main categories:

1) Perfumery and cosmetics (50 % of procurement).

2) Synthetic detergents and cleaners (41, 5% of procurement).

3) Paper production (5% of procurement).

4) Hygienic production (3% of procurement).

5) Hosiery (0, 5% of procurement).

The total number of suppliers in Kubko’s company is 48. The most important are next: «Nevskaya kosmetika», «Arnest», «Unilever Rus», «Vesna», «Unikosmetik», «Torgovyj dom NHK», «Aist», «A-P-Trade».

When Kubko’s company looks for the new suppliers, it is guided by the following parameters:

1. The supplier has to be the producer. The company doesn't like to work with middleman. Producers can provide certain wholesale discounts and can give official a rank of the official distributor in the region.

2. Goods have to be competitive. It means price policy, recognition of a brand, category of goods. Also it means products that can be sold in profitable quantities on the basis of its price, quality, and service combination preferred by buyers.

3. The next important criterion is business conditions with the supplier. It includes discounts, prepayment. An opportunity to return goods to the producer is considered as the most important condition.

4. Marketing plays a huge role in selection of the supplier. If the supplier is ready to provide all necessary budget for marketing action, the company more willingly will choose him from among applicants. The supplier has to fix a certain budget for advertizing, for informing clients about the production, for distribution of handbills, brochures, prospectuses, samples of production.

Sales promotion is equally important for producers, intermediaries and consumers. Sales promotion is very important as well as effective method for manufacturers to supply products to target market. The consumers get benefits from sales promotion. They can get direct benefits from the programs such as discounts, coupons, free distribution of samples. Middlemen get benefits from marketing and sales promotion too. For wholesalers, retailers, agents and dealers it becomes easy to sell goods.

During analyzing the procurement process and supplier management in Kubko’s company several problems were recognized.

Problem 1: the first problem is the lack of insurance during goods transportation and delivery.

Situation 1: in 2014 the company used services of TransLider transport company for delivery the goods to the client in Yuzhno-Sakhalinsk. Before shipping the goods were in TransLider’s warehouse. Unfortunately, there was a fire in the warehouse, and the goods burn out.

Situation 2: there was a case when 10 containers have arrived from Moscow, and 8 of them were with freight, and 2 – were filled by boards. Somebody has stolen the goods.

Situation 3: other example – a rolling stock had been staying for a week in Irkutsk while wheel couples had been being changed . There was a delay of goods, the company had losses. All these risks should be insured.

Solution: Kubko’s company should use the insurance.

Cargo insurance provides protection against all risks of physical loss or damage to goods from any external cause during shipping, whether by land, sea or air.

Properly insuring cargo, in conjunction with good physical risk management, is an important way to manage the financial impact of loss or damage. The coverage should include options to insure from “warehouse to warehouse”.

Also insurance covering should include:

- fire - both direct and consequential damage either from steam or smoke or efforts to extinguish a fire;

- mysterious disappearance or pilferage of goods;

- thieves - forcible taking of a shipment;

- barratry – fraudulent, criminal or wrongful acts that causes loss or damage to the ship or cargo;

- explosion hazards;

- earthquake, volcanic eruption, lightning stroke;

- risks during loading and unloading the goods;

- plunder of goods by burglary, a robbery or assault;

- deliberate destruction of goods;

- stealage of vehicle;

- explosion clauses;

- hazards in warehousing, forwarding.

Problem 2: it should be noted that IP Kubko works with «powerful giants» in the sphere of production of household chemicals. Such suppliers are much stronger than the customer and often can dictate terms of the contract.

The producer is the monopolist in a sense, he feels his own irreplaceability and irreplaceability of his products. That is why producer sets terms, and the customer accedes to all his terms.

Situation: “Aist” company registers in the contract such condition as “The buyer accepts liabilities to provide in 2015 the annual volume of purchases of goods in the following volumes: synthetic detergents in volume of 21 tons, liquid detergents of 178 tons, soap in volume of 4 tons. So, the Kubko’s company should assume a liability to buy mentioned number of goods.

Solution: To avoid this kind of situation with a new suppliers in the future, it is possible to recommend the following actions.

In the stage of business planning it is necessary to reverse such decisions on cooperation with a monopolists. If cooperation is already conducted, company should consider alternative options. For example, company should start to work with distributors.

This decision would be more expensive, however the positive sides would also appear. For example, the distributor can be located to the customer much closer, than the producer. Transportation costs would be used sparingly.

Besides that services of the distributor are better. A lot of producer still have «the syndrome of the Soviet trade» which means lack of services.

The client won’t meet such phenomenon in distribution, because there importance of service for clients is understood.

Also there are situations when the need for resources is much lower, than the selling consignment.

If company do not want to buy a big unnecessary lots, it can use services of the distributor. Also distributors provide a complex of services in case of delivery from abroad. The buyer doesn't have to be involved in a difficult customhouse process, all procedures will be made by the distributor. It is much more convenient and it saves time. That is why Kubko’s company should pay attention to distributors and cooperation with them.

Now let’s summarize arguments for contributing with the supplier and or the producer.

Reasons to use the producer:

1. Price of the producer is lower than price of the distributor.

2. The producer can grant the dealer rights and a dealer discount to the customer.

3. Wider range of stocks of finished goods.

4. Purchases at the producer is the protection against a counterfeit.

5. The producer can provide packing of goods in the client's container.

Reasons to use distributors:

1. The producer works only through distributors.

2. The distributor is located to the customer closer, than the producer.

3. Services of the distributor are higher than services of the producer.

4. The need for resources is less, than a minimum lot of the order.

5. The distributor assumes the solution of all problems of interaction with the producer.

6. Possibility of complex service.

7. Minimum transport expenses.

8. No difficult customhouse process during the import.

Problem 3: the seasonal goods turn into illiquid goods.

Situation: the company has bought anti-mosquito products. But the summer was dry and hot, there were no mosquitoes. People didn't buy production, there was no demand. The goods were in a warehouse and have turned into illiquid.

Solution:

1. Today there are various online fairgrounds such as www.nelikvidi.com which give an opportunity to realize the illiquid goods on profitable terms and in the shortest time.

2. The easiest way is a position changing in the shop. If the illiquid goods are on the lower shelves of your shop, you should move it higher, make the bright price tag, change packing of goods. As practice shows part of goods begins to be sold.

3. Return of goods to the supplier. This option, certainly, one of the most favorable to retailers: If there is an opportunity to return goods to the supplier, expenses will be minimum. But it is necessary to agree about returns of illiquid goods in the very beginning of cooperation. Suppliers have more market channels of production, and it is easier for them to realize goods.