What is procurement logistics?
Procurement logistics is one of the basic systems of logistics. This is the link between the company's own production (production logistics) and the delivery and storage of parts and materials required for this (distribution logistics).
This area includes all the important elements of a company's supply, such as purchasing, transport and storage. If the procurement logistics are designed optimally, an almost smooth flow of all subsequent processes, such as production, can be guaranteed.
What are the tasks of procurement logistics?
Procurement logistics is fundamentally determined by corporate goals such as profitability or competitiveness. The objectives are as follows:
- Favorable purchase
- Safe supply
- Flexibility in delivery
- High quality products
- Low other costs (such as storage and transport)
- Low inventories
So the main goals are to spend as little money as possible and continue to maintain flexibility in production and delivery.
