Increasing Procurement Efficiency in Supply Chains

Procurement is an extremely important part of a company activity due to its operational and strategic functionality. The main aim, which is posed in this research, is to analyse purchasing and its effect on a supply chain in the way of increasing efficiency. The chosen theme is presented in different articles due to its importance, nevertheless, procurement efficiency improvement methods vary, and the uniqueness of each enterprise should be taken into consideration. The analysis of a theoretical background was done to evaluate the necessity of procurement and to define methods of processes perfection. It involves history of procurement and necessity in supply chains, objects of purchasing which could be developed by logistic methods according costs, quality and time. Moreover, in order to confirm information about efficiency development the analysis of a practical part is presented in the next parts of the research. The information about the internal and external activity of the medicine enterprise was collected by using different methods such as comparison, classification, process modelling. The defined problems of an enterprise correlates with procurement, considering planning processes and additional costs on purchasing. Besides, the research illustrates recommendations about the stock and order quantity, resource planning and partnership, involving an objective of supplier selection. Represented optimization is connected with costs repartition and quality of the medicine service increase that influences on logistic and economic efficiency. The future research could include the development of costs analysis in order to evaluate an accordance of forecasts to the factual values and to improve the current situation of the division of financial resources of this enterprise. Key words: procurement, purchasing, stock level, partnership development