Procurement in Azerbaijan.
Every day the purchasing policy in companies plays an increasing role. To survive in the competition with large players, small companies need minimum prices for the goods they sell.
Procurement is defined as the acquisition of goods, services or works from external forces that are vital to the organization’s operations. The procurement process can be divided into two parts: the initial process, which includes procurement, and the subsequent process, which includes purchasing.
The purpose of the procurement function is to provide the business with the following benefits:
- Supply reliability
- Reduced costs
- Reducing risks
- Improving quality
- Increased added value
- Improving efficiency
The purchasing process is simply about getting the right products or services to the right place at the right time for the right price.
15 reasons why procurement is important?
- TRUST to SME by our suppliers, with whom we have been cooperating productively for a long time, which allows us to carry out your purchases promptly, save capital and deliver your order in full condition and on time.
- CONSOLIDATION OF VOLUMES. We combine purchases of specific goods or services from multiple customers through SME resources. As a result, we get better conditions from suppliers than if you did it yourself.
- TRANSACTION OUTSOURCING. We have no downtime, because vacations, sick leave and timely replacement of employees are our tasks.
- The company adheres to the policy of using transparent procedures for selecting a supplier, ensuring RISK MINIMIZATION and cost-effective spending of funds for the purchase of goods, works and services.
- Why keep several SPECIALISTS of the purchasing department in each firm, if the general company can deal with the purchases? SAVINGS are obvious.
- LEASE of warehouse premises of a small area for reloading products and storing minimum consignments of goods for one or several companies;
- Hiring VEHICLES to facilitate the movement of consignments between companies in the community.
- Hiring an ACCOUNTANT to carry out mutual settlements between companies of the community and companies-suppliers of products, or additional payment for the work of an accountant already existing in your company. And how effective will this accountant provide after doubling the work?
- Payment of TAXES for the above reasons.
- Even if your internal buyers are doing well and there are no problems, effective procurement is a reality, there are still several signs of UNDER PROFIT from procurement.
- If the company does not have the ability to describe internal processes, because only certain people have the “SECRET” KNOWLEDGE in procurement. And they are so busy with urgent operational tasks that they cannot be distracted even for a moment.
- The purchasing function is MANUAL or only due to the quick wits of the employees. There are procedures, BUT, in fact, everything works differently.
- UNSUITABLE, WRONG SPENDING. For example, seasonal payments dump unexpectedly. Tenders are incomprehensible, and inspections are not easy to carry out.
- Your specialists do not always carefully look at the important points in the DOCUMENTS attached to the order, which creates problems during the customs clearance of goods. For example, extra surcharges for transport workers for demurrage or an incorrect number on the invoice leads to additional customs costs, while a delay in an order means a delay in the delivery of goods to you and your customers.
- The owner or CEO feels that somewhere in the procurement process there are LOOPHOLES FOR FRAUD, corruption and kickbacks. That’s just a phonite. Perhaps it’s time to search for them?
Provision of services
- Cost analysis and sourcing
- Negotiating and managing contracts
- Operational procurement (the process “from application to payment”)
- Accounts payable
- Supplier Performance Management
- Timely delivery of goods
- All other processes supporting procurement activities
Our company provides procurement services in Azerbaijan in all countries of the world with a guarantee of the availability of the necessary goods and services through the selection of suppliers that meet the technical and economic requirements of the company. Building long-term partnerships with suppliers is one of the tasks of the Procurement Department staff, which includes, among other things, supporting the increase in total capital gains, exchanging quality assurance information and regularly exchanging data, as well as developing innovations. An effective procurement strategy can do a lot. For example, it can save the company money by negotiating favorable terms and prices. It can also ensure the quality, efficiency and timeliness of suppliers. We work on the basis of an official contract and are responsible.