Retail trade turnover and its dependence on the choice of public procurement procedures


2018-03-17 22:50:07




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The Economic activity of the state includes a set of directions, among which occupies an important place in retail trade. Therefore, the analysis of retail trade turnover seems to be a necessary component of strategic planning for economic development.

The most Important performance indicator in retail trade is the amount of its turnover. The retail trade turnover represents the aggregate of goods, which were sold to the population for cash money enterprises and companies of state ownership. As a rule, these goods are purchased for personal consumption or use in the personal sector. Retail trade turnover reflects the real revenue organizations and trade enterprises from the sale of goods to the population on condition of their full or even partial payment.

An Important, if not critical, factor in the effectiveness of the activity for the state supports the very existence of products that can be offered for sale to the public. So, naturally, formed the problem of filling the market, then there's the issue of procurement of state trading enterprises. Public procurement, in fact, form an retail trade turnover. Their timely, high-quality organization depends on the dynamics of retail trade turnover.

One of the proposals to solve these problems is to create a modern approach to the classification of procured goods and the definition of a set of procedures corresponding to the selected classification.


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Since the choice of procedure or otherwise depends on the price and quality of purchased goods, the basis of their classification is to be based on the criterion of definability of the qualitative characteristics, because the turnover of retail trade today, by and large, determined by the quality of goods consumed.

Based on this classification of purchased goods can be taken the division of goods into inspection, experimental and trust. To inspection are good, the quality of which can be set without the involvement of experts and to contract. To pilot those characteristics which are set only after the conclusion of the contract and delivery of goods.

To trust are those properties which are possible to assess only after some, possibly long, time after their consumption.

To retail turnover corresponded to the parametric characteristics of the market and the purchasing power of the population, the public purchase should be classified according to qualitative indicators of goods and availability analysis of these characteristics for the consumers.

Inspection goods include such characteristics which can be fixed in the specification in a formal way. This class can be attributed only to the goods, as the quality of the works or services can only be determined after their delivery, i.e. the conclusion of the contract. The customer can fix an acceptable level of quality in all of the required characteristics of such product in the specifications, to assess their quality at the time of delivery and, in the case of the supply of goods is not satisfactory, to go to court. Thus, the customer is dealing with standardized goods, the quality of which can be set on the basis of specifications, standards, technical specifications.

Example - stationery (paper, pens, computer equipment, etc.) or standardised building materials (sand, cement, etc.). The quality of the product is standardized and can be easily determined at the time of delivery. The procurement and inspection of goods can be carried out by carrying out of quotations or auction.

The pilot are those quality parameters which can only be assessed in use. These include typically non-standardized, which can be installed by the customer only after consumption. In this case, the costs of abandonment of the contract and re-procurement is significantly higher than for the inspection of goods. The customer is faced with risks that stem from uncertainty, lack of reliable information about quality. This uncertainty can be reduced by improving awareness of the qualifications of the provider, in substantially aided by specialized institutions that allow the client to reliably assess the quality of the goods (institutions of certification and licensing, etc.).

If there is certification of providers, by third parties or market participants, the customer can use the certificate as mandatory requirements to the potential supplier. The presence of such a certificate may confirm the reputation in the market and its technical equipment, for example, a properly-equipped storehouses. The introduction of such requirements does not relieve the customer from the risk of receiving a substandard product, however, it greatly reduces such risks.

The Quality of credence goods cannot be evaluated by the customer before or after delivery. In addition, the quality of such good may be relative, i.e. to be perceived by different agents varies. Credence goods are not standardized, the quality of their non-verified, i.e., even if the customer knows that the quality of the delivered good are not satisfactory, it may not always be able to prove it in court. An example of credence goods - educational services.

Cost of goods sold at a discount, also included in retail trade turnover. It does not include only the cost of those products sold to social organizations, individual entrepreneurs and public catering enterprises.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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