Year of Graduation
Improvement of the purchasing procudure of non-production material resources and capital assets in a production company
Faculty of Logistics
Annotation1. Graduate qualification work"Improvement of the purchasing procedure of non-production material resources and capital assets in a production company"2. StudentKlimov Mikhail Yurievich, group 420L, Faculty of Logistics NRU HSE3. Scientific advisorKolik Alexander Veniaminovich, candidate of science, professorKey words: purchasing, purchasing management, supply management, non-production material resources, indirect sourcing, e-auctions. It’s a well-known fact that purchasing is an activity critical for business but usually focus is on production material resources, those that are used in a production of finished goods. Indirect sourcing is being treated as a secondary activity. Nevertheless, indirect sourcing costs may compile great amount of overall company costs and sometimes their volume may be even more significant than that of direct sourcing costs. Consequently, it is necessary not only to control these costs thoroughly but also to constantly improve indirect sourcing procedure to provide business with competitive advantage.Aim of this work is to develop a list of recommendations for improving the indirect sourcing procedure in a company that manufactures cosmetics. To achieve the aim set some tasks should be solved:· To analyze company’s production and finance activity· To examine the existing indirect sourcing process in the given company· Conduct literature content analysis on the subjects of purchasing management, indirect sourcing, and supply management in order to identify existing approaches to purchasing procedure improvement.· Develop a recommendations for indirect sourcing procedure improvement in the given company and use them· To assess the expected financial outcome of using the developed recommendations in the manufacturing companyBased on existing theoretical sources on the subject, the following recommendations were developed: reorganization of the existing indirect sourcing structure, changing the list of used KPIs, introduction of e-auctions, inserting new steps in the procedure. As a result of implementing proposed recommendations level of cross-functional coordination was raised. Also purchasing prices were lowered and supplier relations improved.The developed recommendations proved to be financially effective. Change of the basic financial indicators was analyzed by the DuPont strategic profit analysis. 4. Volume of the work: 98 pages, 16 pictures, 8 tables, 34 theoretical sources used.