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Further, the Department attracts bids andBidding Commission decides on the choice of the counterparty [2].The documents required for implementing the procurement process:- the- the- the- the- theProcurement Regulation;Procurement process rules;Bidding Commission Regulation;Management Orders;Bid Instruction​DocumentationPurchases start with identifying the needs of the organization and each department. The choice of supplier is an important part ofprocurement, including search for the sources of guarantee and estimation of the supply and provision of necessary services for sales.

Ordersare usually placed as a result of the tender.The stages of the procurement process are:1. Demand analysis. To begin, we explore the need for material resources of the relevant units of the company.2. Define and assess the requirements for the purchased material resources. The requirements for weight, size, and supply parameter areestablished.3. “To produce or to purchase”. You need to answer the question: whether it is not more profitable to produce the necessary materialresources by the company itself?4. Market research into procurement. It starts with identifying the potential suppliers on markets and new markets. Next is the preliminaryassessment of the possible sources of purchased material resources, and also an analysis of the risks associated with access to thesemarkets.5.

Selection of suppliers: information collection on the suppliersis made; the vendor​database is created; search for the optimal supplier;performance evaluation of the selected suppliers.6. Procurement. Procurement procedure includes registration of the contract relations, transfer of ownership of material resources, payment,organizing transportation of material resources.7.

Monitoring of deliveries. Effective supply chain management is evaluated as a result of monitoring the implementation of contracts on thetiming, price, quantity, quality and other aspects of supply and service.8. Procurement budget preparation.

The behavior of relevant economic calculations to identify precise procedures and operations costs.9. Coordination and interrelation of the supply function with the other subdivisions of the company as well as establishing close relationshipswith suppliers [13].10. Organizing the procurement activities, i.e. implementing a set of measures aimed at procurement planning and documenting productneeds.The factors having influence on the functions of the Procurement Division in the organizational structure of the company:-the proportion of the costs of the purchased materials and external services for expenses (income)​of the company;-the essence of the purchased products or services;-the situation on the market of products or services which are vital for the company;-the capacity for performing this functionThe procurement service in the company can be built centrally and decent rally [see p. 1].

If the company is suitable to process from a positionof decentralization, clerks will undertake purchase, each for his Department. The procurement process for this approach can be implementedfaster. For the centralized procurement, a certain individual is assignedor a division with the authority to make purchases for all divisions isset up.

[13]The specialists of the enterprise procurement department are responsible for the purchase of products in accordance with the specificationsof domestic consumers. In compliance with the concept of logistics in the process of providing the enterprise with the subjects of labor, thereshould be the business activities on the implementation of a systemic approach to the management of material flows within the purchasingand store department.In Figure 1, the version of the enter prise organizational structure with the distribution of​the above tasks between different functional unitsis given. The decision on what to buy and how much to purchaseis made by the Production Management. The work on storing the purchaseditems of labor is also performed here.Figures1 - Implementation of the procurement function in the work process of different subdivisions of an enterprise.The decision from whom and on what terms to purchase is made by the Procurement Management.

Here is performed the listed procurementwork, i.e. the contract saresigned and their execution is controlled, and the delivery of the purchased subjects of the labor is arranged. As aresult, the function of managing the material flow in the process of supplying the enterprise with raw materials is shared between thedifferent departments, and its effective implementation is difficult.When you set up the Logistics Department at the enterprise, this Department takes on all the functions for delivery, warehousing, andinventory management of material resources at the enterprise. The basic types of organizational structures of the Purchasing and StoreDepartment are: functional, marketable, market-based, and matrix.1.

The functional structure​includes:- Procurement Department;-Transport Department;-Warehousing;-Planning & Dispatch Department;-Group of customs registration of cargoes.This structure is typical for medium-sized enterprises where there is no Department of Logistics. The Planning & Dispatch Department plansthe purchase, regulates, monitors, and analyzes the implementation of the plan. Functional structure is the base, and its units are present inother types of organizational structures of the Purchasing and Store Department.2. Marketable (Commodity).

If your organization uses a wide range of material resources with large amounts of procurement, in thePurchasing and Store Department, the Marketable Subdivisions (groups) specializing in working with certain kinds of material resources canbe founded. This structure is typical of large industrial and wholesale traders. Commodity groups do the operational functions of procurementand supply enterprises with necessary material resources. Planning & dispatch group plans, regulates, and supervises the execution of theplan.

Customs clearance group provides customs clearance and passage ​http://dvgups.antiplagiat.ru/ReportPage.aspx?docId=427.22191860&repNumb=123/23.

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