Procurement is a very important process for full activity

Every business owner understands that the purchase – this is one of the most important factors in the successful operations of the company. In connection with the importance of this process in the results of entrepreneurship should pay due attention to the study of this industry.

Purchase – this is the basic step, which directly affects the profitability of the business and the success of development activities. Every moment associated with the acquisition of goods for the company, should be considered and analyzed.

What is the purchase

Abstract talk about the meaning of the word everyone can do. However, business is not the place where you will fit a rough definition and meaning. In business terminology, a purchase – is the buying of goods in large quantity for the company.

Most of the purchases are made wholesale, because it is more profitable and more convenient for continuous operation of the company, whatever the company did. Also to check the level of demand for the product sometimes order the retail unit.

What are the public procurement

Types of acquisition of goods, there are many. Public procurement – acquisition of necessary goods and services for the full implementation of the heads of the country's obligations to the public.

The State may acquire all that is necessary, at the expense of budgetary funds. It can be:

• Transportation.
• Cleaning Equipment.
• Emergency Vehicles.
• Medicines for state medical institutions.
• Materials and equipment for construction.

This is just a small list of procurement carried out by public authorities. Overall for the budget, the head of state or an authorised person may place orders important for full activity of goods and services.

What types of purchases are

No matter what kind of work the company does, in any case, the purchase is an integral part for success. In turn, the purchases are distributed into two types:

1. Straight.
2. For Indirect.

Direct purchase – direct the purchase of goods or services related to the activities of the company. This may be finished products, as well as elements for implementation and creation of new sources of production.

Under direct procurement refers to the ordering of goods and services from suppliers with a view to maximizing activity of the enterprise.

Indirect purchasing – this is something that needs work, but is not directly associated with the activities of the company. For example, office supplies, furnishings, office accessories to organize your space. These purchases are also very important, because without them will not work to fully equip workplaces of the personnel and communication with customers.

Each of the types has its own procurement system. Depending on private or public company, the scheme may differ. Private offices unable to process orders of goods and services directly with the supplier. That is, without using additional means and programs, the authorized representative of the company may by telephone or email to contact the seller necessary resources.

In the case when the purchase is funded from the state budget, the scheme of purchases varies. In this case there is no possibility to conduct negotiations about deliveries directly with the vendor of the needed goods or services. In 2013 there was introduced the system of electronic trading. This scheme is devised with the aim of eliminating corruption from the legislative state authority. Unfortunately, the precedents were, therefore, responsible authorities for the fight against corruption in the state has found a method for reducing waste of the money of the country.

With the introduction of a public procurement electronic trading system of orders has become transparent and accessible to everyone. Even an ordinary citizen in this program can view all purchases in the state.

How to make accents in procurement

Making purchases, you should consider some factors:

• If the purchase is large, you should seek reliable partners.
• Low price does Not always mean quality. Therefore it is necessary to prioritize in order not to suffer later.
• A Wholesale purchase is always profitable, however, you should take into account the level of demand for a product or service, particularly if products are perishable or have limited shelf life.

The Correct purchase will assist in the successful conduct of business, whatever the company.