JOB DESCRIPTION for the Head of the Logistics Department (approximate)

1. GENERAL PROVISIONS 1.1. This job description defines the functional duties, rights and responsibilities of the Head of the Logistics Department. 1.2. The head of the logistics department is appointed to the position and dismissed from the position in the manner established by the current labor legislation by order of the director of the enterprise. 1.3. The head of the logistics department reports directly to _____________________. 1.4. A person with a higher professional (economic or engineering-economic) education and work experience in a specialty in the field of logistics is appointed to the position of Head of the Logistics Department. 1.5. The head of the logistics department must know: - legislative and regulatory legal acts, methodological materials on the logistics of the enterprise; market methods of business management; prospects for the development of the enterprise; methods and procedures for long-term and current planning of material and technical support, development of standards for production reserves of raw materials, materials and other material resources, carrying out work on resource conservation; organization of logistics and warehousing; the procedure for concluding contracts with suppliers and monitoring their implementation, drawing up documentation for the release of materials to the divisions of the enterprise; standards and technical conditions for material and technical support of product quality, methods and procedures for their development; wholesale and retail prices, range of consumed materials; fundamentals of technology, organization of production, labor and management; organization of accounting for supply and warehouse operations and the procedure for reporting on the implementation of the logistics plan; basics of labor legislation; computer technology, telecommunications and communications; rules and regulations of labor protection. 1.6. During the temporary absence of the Head of the Logistics Department, his duties are assigned to _______________________. 2. FUNCTIONAL RESPONSIBILITIES Note: The functional responsibilities of the Head of the Logistics Department are determined on the basis and to the extent of the qualification characteristics for the position of the Head of the Logistics Department and can be supplemented and clarified when preparing the job description based on specific circumstances. Head of the logistics department: 2.1. Organizes the provision of the enterprise with all the material resources of the required quality necessary for its production activities and their rational use in order to reduce production costs and obtain maximum profits. 2.2. Manages the development of projects of long-term and current plans and balances for the material and technical support of the production program, repair and maintenance needs of the enterprise and its divisions, as well as the creation of the necessary production reserves based on determining the need for material resources (raw materials, materials, semi-finished products, equipment, components, fuel, energy, etc.) using progressive consumption rates. 2.3. Seeks sources to cover this need using internal resources. 2.4. Provides preparation for concluding contracts with suppliers, agreeing on terms and conditions of deliveries, studies the possibility and feasibility of establishing direct long-term economic relations for the supply of material and technical resources. 2.5. Organizes the study of operational marketing information and advertising materials about the offers of small-scale wholesale stores and wholesale fairs in order to identify the possibility of acquiring material and technical resources through wholesale trade, as well as the purchase of material and technical resources sold on a free sale basis. 2.6. Ensures the delivery of material resources in accordance with the terms stipulated in the contracts, control of their quantity, quality and completeness and storage in the enterprise’s warehouses. 2.7. Prepares claims against suppliers in case of violation of contractual obligations, controls the preparation of settlements for these claims, and coordinates with suppliers changes in the terms of concluded contracts. 2.8. Manages the development of enterprise standards for material and technical assurance of the quality of products, economically sound standards for production (warehouse) stocks of material resources. 2.9. Provides control over the state of stocks of materials and components, operational regulation of production inventories at the enterprise, compliance with limits on the supply of material resources and their expenditure in the divisions of the enterprise for their intended purpose. 2.10. Manages the development and implementation of measures to increase the efficiency of use of material resources, reduce costs associated with their transportation and storage, use of secondary resources and production waste, improve the control system over their consumption, use of local resources, identify and sell excess raw materials, materials, equipment and other types of material resources. 2.11. Organizes the work of the warehouse, takes measures to ensure compliance with the necessary storage conditions. 2.12. Provides a high level of mechanization and automation of transport and warehouse operations, the use of computer systems and regulatory conditions for organization and labor protection. 2.13. Organizes accounting of the movement of material resources in the enterprise's warehouses, takes part in conducting an inventory of material assets. 2.14. Ensures the preparation of established reporting on the implementation of the enterprise's logistics plan. 2.15. Manages department employees. 3. RIGHTS OF THE HEAD OF THE LOGISTICS DEPARTMENT The head of the logistics department has the right: 3.1. Give instructions and tasks to his subordinate employees and services on a range of issues included in his functional responsibilities. 3.2. Monitor the implementation of planned tasks and the work, timely completion of individual orders and tasks of the services subordinate to him. 3.3. Request and receive the necessary materials and documents related to the activities of the Head of the logistics department, subordinate services and divisions. 3.4. Enter into relationships with departments of third-party institutions and organizations to resolve operational issues of production activities that are within the competence of the Head of the Logistics Department. 3.4. Represent the interests of the enterprise in third-party organizations on issues related to the production activities of the enterprise. 4. RESPONSIBILITY The head of the logistics department is responsible for: 4.1. Results and efficiency of the department’s production activities and material and technical support for the enterprise’s production activities. 4.2. Failure to ensure the fulfillment of their functional duties, as well as the work of the department and its subordinate warehouse services of the enterprise. 4.3. Inaccurate information about the status of implementation of work plans for the logistics of the enterprise. 4.4. Failure to comply with orders, instructions and instructions from the director of the enterprise. 4.5. Failure to take measures to suppress identified violations of safety regulations, fire safety and other rules that create a threat to the activities of the enterprise and its employees. 4.6. Failure to ensure compliance with labor and performance discipline by employees of subordinate services and personnel subordinate to the Head of the Logistics and Technical Support Department. 5. WORKING CONDITIONS 5.1. The work schedule of the Head of the Logistics Department is determined in accordance with the Internal Labor Regulations established at the enterprise. 5.2. Due to production needs, the Head of the Logistics and Technical Support Department may go on business trips (including local ones). 5.3. To resolve operational issues to ensure the production activities of the Head of the Logistics Department, official vehicles may be allocated. 6. SCOPE OF ACTIVITY. RIGHT OF SIGNATURE 6.1. The exclusive area of ​​activity of the Head of the Logistics Department is to ensure planning and organization of the production activities of the enterprise. 6.2. Head of the logistics department. to ensure his activities, he is granted the right to sign organizational and administrative documents on issues included in his functional responsibilities, to give orders and instructions. I have read the instructions ___________________ (Signature)

MTO is an activity characteristic of almost every organization. The abbreviation stands for “material and technical support.” This is the main topic of the article. In addition to the definition, we will consider the functions, forms, organization of logistics, its management, drawing up support plans and other important issues on the topic.

Definition

Logistics support is one of the types of commercial activities that provide the organization with material and technical resources, respectively.

And a more detailed definition. Logistics support is a system for the use and circulation of fixed and working capital of an organization (raw materials, machines, semi-finished products, etc.), means of labor. As well as their further distribution among business units, structural departments, and consumption in the production process.

The main goal of logistics is to provide material and technical resources to production in the agreed volumes, to the specified location.

Functions

Logistics functions are divided into two categories: technological and commercial. Let's look at them.

The commercial functions of MTO, in turn, are again divided into two groups. The main ones are the direct purchase or rental of technical and material resources. Auxiliary functions of MTO are the following:

• Marketing. Decision on choosing one supplier or another, justification of trust in this partner.
• ensuring the purchase/rental of resources, protecting the range of property rights, as well as supporting business negotiations. Concluding transactions and monitoring their execution.

Technological functions of the institution’s material and technical support:

• Resolving issues regarding the processes of delivery and storage of resources.
• Unpacking, procurement, conservation of resources.
• Pre-processing of raw materials and other resources.

Main responsibilities of the department

Logistics support for activities is the execution of a number of sequential and interrelated tasks:

• Planning the organization's resource needs. The basis is taken from data on two production indicators - capital productivity and material intensity. The information determines the optimal ones required for a specific production cycle or a separate release of a certain batch of products/services.
• Procurement task. The logistics department carries out operational and procurement work at the enterprise in accordance with demand plans. Also controls the processes of concluding supply contracts, analyzes production “errors”.
• Storage of materials and prepared raw materials. Warehousing organization. In addition, the responsibilities of the department include developing instructions and guidelines for the storage and use of supplies.
• Accounting for harvested resources. Strict control over their issuance to structural units.

MTO forms

The logistics center may vary. It all depends on the specifics of the enterprise or company itself.

Let's consider the most common forms of logistics support for an organization:

• Supply of semi-finished products, finished products or technical services through direct economic relations.
• Wholesale trade of certain means of production, goods. It is carried out through warehouses, commodity procurement bases, and a store network.
• Borrowing and exchange transactions undertaken in the event of a lack of resources, funds, or investments.
• Recycling production waste or using secondary resources.
• Leasing is one of the main tools in the world of finance, through which long-term investment can be made in the modernization and re-equipment of production. Creates a stable material and technological base, promotes increased competitiveness and better quality of manufactured goods.
• Purchase of raw materials and resources through special commodity exchanges. Organization of import purchases under relevant cooperation agreements with foreign companies.
• Development of subsidiary farms (example: production of containers, extraction of any raw materials). Implementation of further centralized distribution of resources.

Classification of logistics forms

The forms of logistics processes can be divided into two categories.

1. Transit (direct). Products are supplied to the consumer from the manufacturer. Purchased goods from suppliers are distributed to retail outlets. Accordingly, there are no intermediaries, and the buyer-seller relationship is a direct economic connection.

Positive point: significant acceleration of the delivery process, strong economic ties, absence of intermediary and intermediate operations. All this results in a definite plus: a significant reduction in transit costs. This form of logistics organization is advisable with constant cooperation and a large volume of resources being sold.

2. Warehouse. Products are supplied using distribution and intermediate warehouse terminals and complexes. Convenient for cases where materials and raw materials are consumed in small quantities. Initially, resources are purchased here at wholesale prices, then they are sent to warehouses, and from there to the end consumer. Inventory inventories begin to decline, and capital turnover increases.

The enterprise gets the opportunity to import resources at a convenient time, in the quantities needed “now”. This gives intermediaries the opportunity to prepare cargo for transportation in advance in order to deliver it at the first request of the consumer organization. But for such convenience, the costs are borne by the buyers themselves - so-called warehouse margins are introduced. Despite all the advantages, this form of logistics organization still increases overall production costs.

Organizational structure

Logistics management is the organization of two processes: purchasing and supply management. Let's look at this in more detail.

Procurement organization:

• Management of procurement of specific works.
• Organizing the purchase of necessary raw materials and equipment. This is the management of material purchases, equipment purchases and service purchases.
• Management of procurement of consulting assistance.

Now the second process. Supply management consists of the following activity vectors:

• Inventory Management.
• Management of supplies of own products.
• Managing the distribution of resources within the organization itself.

Forms of management organization

Logistics management - choosing one of three proposed forms of resource delivery:

• Decentralized. Shops and departments of the enterprise themselves remove the raw materials they need from production warehouses. Service vehicles are used. This form is more suitable for those enterprises that carry out individual or small-scale production.
• Centralized. On the contrary, it is suitable for enterprises that are already aimed at mass production. Warehouses, according to a predetermined schedule, transfer to workshops a certain amount of required material resources. Such an organization provides the opportunity to prepare for delivery in advance; it is more expedient to use transport and auxiliary work departments that are directly involved in distributing the required raw materials to the workshops. Centralized delivery of resources, in addition, greatly simplifies the system of accounting and control over the passage of raw materials, equipment, materials from the main warehouse to a specific workplace.
• Mixed. With this form, there is a joint use of both centralized and decentralized forms. Accordingly, some resources are supplied to certain workshops according to a set schedule. At the same time, the organization’s divisions remove raw materials of a different quality from warehouses themselves, using official transport.

Governance structures

The enterprise is characterized by systematization of services and material support departments. There are three main management structures:

• Functional. Each division performs its strictly defined function. This division is typical for enterprises engaged in small-scale or single-piece production, with a small range and small volumes of materials.
• According to the commodity principle. Here, individual logistics departments carry out the entire range of work to supply raw materials. Such management is most typical for mass, large-scale production, which is distinguished by a wide range of products and large-scale reserves of raw materials.
• Combined. Some of the department’s specialists are busy with issues of external resource provision. Other employees are engaged in the intra-production movement of raw materials, equipment and other necessary resources.

Disadvantages in organizing logistics

If the logistics program is not structured correctly, this can lead to a number of negative consequences for the scale of the entire enterprise. For example:

• Underproduction. This leads to a decrease in profits.
• An increase in systematic costs due to downtime (a consequence of a lack of resources for production).
• Release of defective products.
• Reduced competitiveness of products.
• Losses due to spoilage of raw materials unclaimed due to excessive inventories.

MTO plan

Material logistics planning is the process of obtaining a basis for making decisions regarding the purchase of raw materials. The following planning stages are highlighted here:

1. Market research. This is the collection, analysis, processing and evaluation of data on offers, their range, the cost of necessary materials and raw materials. Analysis of delivery costs.
2. Calculation of the enterprise's needs for these resources based on the inventory balance. Both external and internal sources of support are taken into account.
3. Drawing up procurement plans.
4. Analysis of the purchase made.

Operational work on logistics

The operational work of logistical training is considered to be the following:

• Receiving and accounting for various stock notices for distributed products (more typical for centralized enterprises).
• Through logistics, the organization orders the receipt of raw materials from suppliers, enters into cooperation agreements with them, and monitors their implementation.
• Specification of production assets. In other words, determining the enterprise’s need for any raw materials according to a special price range. There, all resources are distributed according to types, sizes, profiles and other characteristics.
• Quantitative and qualitative reception of the necessary raw materials.
• The process of organizing the supply of workshops and production units.
• Managing the delivery of materials and equipment to the workshops.

Logistics support is both the supply of the organization with the necessary raw materials and equipment, and the planning of internal movements of resources across workshops. The success of the entire enterprise largely depends on its competent organization and choice of the desired form of supply management.

A system for organizing the supply of an enterprise with the resource base necessary for its production activities.

Logistics support (MTS) includes an analysis of the enterprise's needs for resources, their search, purchase and preparation for use in production activities.

Functional basis and main tasks of MTO

• A commercial. Purchase or rental of material and technical resources necessary for production activities.
• Marketing. Selecting suppliers and concluding contracts with them.
• Technological. Delivery or transportation of resources, as well as their warehousing.
• Administrative. Accounting and control of the resource base.

Planning

• analysis of the cost and quality of resources from different suppliers;
• calculation of costs for delivery of resources;
• calculation of the volumes of required resources in accordance with plans for the production of finished products;
• drawing up a procurement plan.

• Normative. It is based on a direct correlation between the scale of production of an enterprise and its need for resources, which is determined by the rate of expenditure.
• Statistical. It is based on planning coefficients for future consumption compared to past ones and reducing the rate of expenditure for the next period.
• Forecast. It involves analyzing the costs of resource consumption for a certain period of time in the past and their dynamics.

Logistics support for production is one of the most important functions in an enterprise, which in enterprises is carried out through logistics authorities.

The main task of the logistics authorities of the enterprise is the timely and optimal provision of production with the necessary material resources of appropriate completeness and quality.

The functions of the enterprise supply authorities are implemented in three main areas:

Planning including:

Study of the external and internal environment of the enterprise, markets for individual goods;

Forecasting and determining the need for all types of material resources, planning optimal economic relations;

Optimization of production inventories;

Planning the need for materials and setting their limit for supply to workshops;

Operational supply planning

Organizational functions:

Collecting information about product needs, participating in fairs, sales exhibitions, auctions, etc.;

Analysis of sources of satisfying the need for material resources in order to select the most optimal;

Concluding business agreements with suppliers for the supply of products;

Receiving and organizing the delivery of real resources;

Organization of warehousing, which is part of the supply authorities;

Providing workshops, sites, workplaces with the necessary material resources;

Control and coordination of work, which includes:

Monitoring the fulfillment of contractual obligations of suppliers and product delivery deadlines;

Control over the consumption of material resources in production;

Incoming control over the quality and completeness of incoming material resources;

Control over production inventories;

Making claims to suppliers and transport organizations,

Analysis of the effectiveness of the supply service, development of measures to coordinate supply activities and improve its efficiency.

The criteria for choosing a supplier of material resources are reliability of supply, the ability to choose a delivery method, time to complete an order, the possibility of providing a loan, level of service, etc. The ratio of the importance of individual criteria with changes in external and internal factors may change.

The choice of the type of structure of supply authorities depends on the volumes, types and specialization of production, the material intensity of products and the territorial location of the enterprise, various conditions that require appropriate delimitation of functions. In small enterprises that consume small volumes of material resources in a limited range, supply functions are assigned to small groups or individual employees of the enterprise's economic department.

At most medium and large enterprises, this function is performed by special logistics departments (LMTS), which are built on a functional or material basis. In the first case, each supply function (planning, procurement, storage, release of materials) is performed by a separate group of workers. When building supply bodies on a material basis, certain groups of workers perform all supply functions for a specific type of material.

A typical type of supply service structure is mixed, when product departments, groups, and bureaus are specialized in the supply of specific types of raw materials, materials, and equipment. Along with goods, the supply department includes functional units: planning, dispatching. The mixed type of structure of the supply department is the most rational method of structure, which helps to increase the responsibility of workers and improve the logistics of production.

The planning bureau (group) performs the functions of environmental analysis and market research, determining the need for material resources, optimizing market behavior for the most profitable provision, forming a regulatory framework, developing supply plans and analyzing their implementation, monitoring the fulfillment of contractual obligations by suppliers.

A commodity bureau (group) performs a set of planning and operational functions to ensure production of specific types of material resources, planning, accounting, delivery, storage and release of material into production, i.e. regulates the operation of material warehouses.

The dispatch bureau (group) carries out operational regulation and control over the implementation of the plan for supplying the enterprise and workshops with raw materials and materials, eliminates problems that arise during the supply of production, monitors and regulates the progress of supplies of materials to the enterprise.

At mechanical engineering enterprises, the supply service, in addition to the OMTS (material and technical supply department), includes an external cooperation department or bureau, a group that may be part of the OMTS.

Departments (bureaus, groups) of external cooperation provide production with semi-finished products (blanks, parts, assemblies), which can be built according to functional or product characteristics.

To carry out technical re-equipment and reconstruction of production, the enterprise creates equipment departments, which are usually part of capital construction.

For large enterprises (associations) consisting of a number of branches, the most appropriate type of structure is when the divisions have their own supply services with the functions of planning and operational regulation of the supply of production workshops and sites with material resources, and monitoring their implementation. Material resources can be divided into 4 groups:

Depending on the volume of production and the specifics of the materials, the logistics departments of the enterprise are organized differently.

There are the following types of logistics organization:

The formation of a regulatory framework, forecasting and development of MTS plans, the establishment of economic relations and coordination of the work of supply services included in the enterprise are concentrated on the basis of the enterprise's supply service. The interaction of the divisions of the supply service of the enterprise is carried out on the basis of functional connections, and not administrative subordination.

One of the links in the MTS organization is warehousing, the main task of which is to receive and store materials, prepare them for production consumption, and directly supply workshops with the necessary material resources. Warehouses, depending on their connection with the production process, are divided into material, production, and sales.

Accepted materials are stored in warehouses according to product groups, grades, and sizes. Racks are numbered indicating material indices. The delivery of materials and the operation of warehouses are organized on the basis of operational procurement plans.

Introduction

At the present stage, in the conditions of the formation of market relations in Russia, commerce has become an integral part of the activities of enterprises, an integral element of which is material and technical support.

The organization of procurement of material and technical resources influences the activities of the enterprise: the quality of manufactured products; labor productivity, production costs, profit.

In market conditions, the needs for material and technical resources must be determined by the supply service on the basis of orders from production departments acting as consumers. Only production departments can find out: what is required, where and by what time. However, the logistics service must check production orders in terms of the materials ordered and the specifications, and in addition, taking into account the available stocks.

The activities of the logistics service are not limited to only this activity. Consequently, a pressing issue is the study of the functions of the logistics service and its impact on the economic performance of the enterprise.

The transition of enterprises to organizing production and economic activities on the principles of marketing must be accompanied by changes in the organizational structure of management, the nature of work, and the thinking style of economic management. In conditions of centralized planning of production and distribution of products, when commodity-money relations in the Russian Federation played a formal role, the commercial services of the enterprise, including the logistics service, were of secondary importance. With the transition to market relations, the importance of these services has increased sharply. In this regard, a pressing issue is the organization of the logistics service of an enterprise at the present stage.

The performance of an enterprise's commercial services is assessed using various indicators. However, the profit indicator most accurately reflects the effectiveness of commercial work. Therefore, the activities of the enterprise services, including the logistics service, should be aimed at the final financial result - profit.

The purchase of material resources should be based on marketing research. When purchasing material resources, an enterprise must study the market for raw materials and materials, price movements in this market, suppliers, costs for the delivery of material resources, and the possibility of effectively replacing some materials with others.

Increased attention is paid to the possibilities of improving the structure of consumed raw materials and materials. Particularly relevant is the use of new and effective channels of the distribution network when purchasing material resources, the development and increase in the volume of services for delivery, warehousing, warehouse processing, providing information to enterprises in interaction with transport organizations, methods of transporting purchased material resources and other logistics services.

In this regard, it is necessary to pay special attention to the content of commercial activities when purchasing material resources at the enterprise.

The area of ​​studying the organization of commercial activities for the purchase of material resources is quite capacious and is of practical interest.

The purpose of this thesis is to study the theoretical, methodological foundations for organizing logistics at an enterprise.

The object of the study is the activity of the enterprise in the procurement of material resources.

Successful achievement of a set goal depends on solving a number of problems. In general terms, these tasks can be grouped as follows:

Based on the opinions of economists and a review of scientific literature, show the need for proper organization of the commercial work of an enterprise for the purchase of material resources;

Reveal the role and importance of the logistics service in the system of commercial services of the enterprise;

In analytical terms - conduct a targeted analysis of the enterprise’s activities, describe the enterprise’s work in organizing logistics;

Based on the analysis and analytical calculations, identify and formulate problems, determine the main directions, ways and prospects for their solution.

1. Organization of mechanical engineering at the enterprise

1.1. The role and importance of the logistics service in the system of commercial services of an enterprise

In the context of the transition from centralized economic management to market principles, commercial activity has become an integral part of the activities of enterprises, one of the main aspects of which is logistics. Providing production with raw materials, materials, components and all kinds of semi-finished products is associated with the performance of such functions as wholesale purchasing, transportation, warehouse processing, storage of material resources and more.

These functions are planned, controlled, regulated and carried out by specialized services in coordination with other commercial services of the enterprise.

In this regard, it seems appropriate to determine the role and importance of the logistics service in the system of commercial services of the enterprise.

With the transition to market relations, the importance of these services has increased sharply.

The formation of the organizational structure of the commercial services of an enterprise should include two aspects: determining the place in the enterprise management structure - establishing subordination and functions; distribution of functions between individual groups and employees. The supply policy of the enterprise should be built in the direction of improving the structure of consumed material resources, using new and effective channels of the distribution network when purchasing products, as well as increasing the competitiveness of the enterprise.

Enterprises that have created a well-functioning supply apparatus have a great competitive advantage, since the activities of the logistics service are aimed at systematic, comprehensive and rhythmic provision of production associations, enterprises, workshops, sites, as well as workplaces with the necessary types of material resources that meet the requirements of regulatory and technical standards. documents in the interests of smooth and efficient operation of the enterprise.

However, even the best supply apparatus of an enterprise will not produce the required effect if it is not provided with the appropriate level of management.

In this regard, it should be noted that the efficiency of the entire enterprise largely depends on the effectiveness of the activities of the structural units responsible for logistics.

The organization of the activities of these structural divisions includes the following main areas: personnel selection, organization of employee incentives, information support, and the introduction of logistics into their work. At the same time, the construction of the organizational structure of the logistics service is influenced by a number of factors, which are grouped in the following areas:

Technical;

Economic;

Production organizations.

Technical factors determine the influence of equipment, technology and industry structure, the purpose and quantity of manufactured products and consumed material and technical resources. Technical factors also include the purpose and complexity of the manufactured products, and the equipment of the transport and storage facilities.

Economic factors that influence the organizational structure of the logistics service of an enterprise include: the level of demand for manufactured products, production volume, market conditions for raw materials and materials, forms of payment for purchased material and technical resources, the share of small shipments, non-transit shipments, etc.

Factors in organizing production: type of production (individual, small-scale, serial, large-scale, mass), level of specialization, territorial location of production and warehouses.

The variety of factors affecting the structural design of commercial services leads to a very significant number of different types of organizational structure schemes for the logistics service.

Until the 70s. In market economy countries, a decentralized form of organizing material supply was widely distributed. Each enterprise independently provided itself with the necessary material and technical means. Moreover, the supply was carried out within the framework of the production activities of the enterprise.

Since the 70s. decentralized provision of industrial firms is gradually being replaced by centralized provision. Centralization of the procurement of material resources necessitated the creation of independent logistics services. The vice president of the company, who heads MTS, received the same rights as the vice president responsible for production and financial activities. The central supply service produces a procurement policy and develops a “supply strategy”, which consists of solving the main problem: purchasing certain types of material and technical resources or producing them independently. But the main function of the company’s supply service is the purchase of basic types of material and technical resources at the lowest cost. In the central supply service of the enterprise, constant monitoring of the market for raw materials and supplies is carried out, the supply and demand situation is studied, it contains information about new materials, the possibilities of their use, and their production technology.

In the 80s A new concept of materials management has become widespread among Western industrial firms, which provides for the establishment of a unified management and coordination of the purchase of materials, their delivery to enterprises, and inventory control. In companies organizing procurement management of material and technical resources based on a new concept, materials managers appear. Moreover, the materials manager was given responsibility for transporting material and technical resources to enterprises that were previously controlled by the production apparatus. The result of such a reorganization was an improvement in operational management, a reduction in delivery times for material resources, a reduction in the size of inventories and an acceleration of their turnover.