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Organizing the Process of Procurement in the Logistic System of an Enterprise

Authors: Lyudmila G. Protasova, Dr. Sc. (Engineering), Professor, Head of Quality Management Dept., Ural State University of Economics

Irina F. Yanikhina, Sr. Inspector of Analysis, Planning and Control Dept., Ural District Procurement Department of Interior Ministry of Russia (UDPD of IMRF)

Abstract. Theoretical information, regulatory framework and requirements of ISO 9001 Quality Management System in Procurements are summarized. The analysis of the bidding structure in Sverdlovsk oblast indicated that bidding in commodity exchange accounts for 93.04%, auctions and requests for quotation amount to 3.50 and 3.33% respectively, and public tenders equal only 0.15%. Factors behind the choice of procurement method are determined. The regulatory framework and in­house documents regulating procurement process using the case of UDPD of IMRF are examined. Monitoring of procurement indicators demonstrates that the share of rejects in purchased goods should not exceed 0.2%; defects in the fixed assets, telecommunication services and housing and utilities infrastructure are not allowed. The effectiveness of execution of procurement contracts remains low: failed bidding in commodity exchange was 9.11%, request for quotation – 24.2%, public tenders – 4.73%. The authors consider the particularities of purchasing goods for state requirements without entering into a government contract with a sole supplier through signing an agreement in the prescribed form. From the standpoint of quality this procurement method is preferred. Recommendations for improving the procurement process are given.

Keywords: procurement, material supply, bidding, monitoring