Basics of procurement and logistics and the way they improve the result and upgrade the quality of projects
Logistics. Such a capacious word.
Let’s start with the fact that the term itself has a Greek origin. It means “counting art”.
Even during the Byzantine emperors, there were “logisticians” at the court, and their duties included the distribution of food. Not only distribution, but the product itself, including the selection of place to ship it, delivery terms, and even storage periods.
But despite its rather deep historical roots, logistics itself is a young science rapidly developing in tandem with procurement. They are systematically transformed, adapting to new requests.
Previously, almost no one, except for a small number of people, knew the meaning of logistics and procurement.
Simply said, procurement means nothing more than an activity that fully ensures the search and connection of suitable partners for future transactions, agreements, and contracts.
Today this word has consolidated its position in the market as a single unit of effective options for managing not only material, but also information and human flows, where the goal is to optimize this chain.
As for logistics, it has become almost an independent business, still being an integral part of large companies. And, if earlier one or two people had been working in this sphere for organizations, now they are full-fledged divisions, teams, and even departments.
In general, a competent and qualified specialist in the procurement science always knows how to manage resources appropriately and efficiently. And after analyzing his/her role in the management structure, we can say that the company gets significant advantages.
The branches of logistics and procurement are quite diverse. These are transport and warehouse management, organization of information and commercial activities, and personnel management.
By the way, recently the event industry market conducted an internal survey, the purpose of which was to identify the most powerful sides affecting the guest’s impressions of any event.
And what do you think was on the top of the list?
A well-deserved first place of the three leading factors went to procurement!
And only then other important aspects follow the chain.
We can’t disagree with the survey result, as we know how important it is for the company to have the specialist able to think strategically and analytically, meet deadlines, and be extremely attentive. Only in this case you can be sure of the success of any event.
Let’s consider an example!
Imagine that this is the “X-DAY” – the day of your event.
This is, in fact, the chapter of the book – its basis. Everything else is its content (project preparation, tips, ideas, visualization).
By the way, you can read more here
And besides, don’t be afraid, but in fact, the company can prepare a one or two days long event for a year. And this is all due to a thorough and in-depth analysis.
Considering the event in the future, based on the client’s request and a project well-thought-out by the company, the procurement department defines the current and specific goals to achieve a perfect result.
By connecting all internal resources and external opportunities, specialists create an organized movement pace to lead us to “DAY X”.
Every logistics specialist and procurement employee has a basic rule of doing business and it sounds like “Do or buy”. It includes the need to engage contractors as early as possible, identifying those to meet all the needs according to the request.
Most often, procurement conducts a tender on behalf of the company. The tender can be attended by everyone who is involved in the desired sphere.
To win the contract, the contractors must not only have a single-discipline knowledge of their business, but also provide a product or service at the highest (let’s not be afraid of this word) level of quality and timing.
And this is where the scrupulous analysis starts.
What does it include?
A lot of answers to the main questions raised.
- Is the contractor a diligent company?
- Have there been any failures in its history?
- Does the quality of the service or product meet your needs?
- Is punctuality its main advantage?
And much more.
And only analyzing all the details, the specialist selects the company rightfully deserving the client’s trust.
Let’s just say that the very work of an event company is like an iceberg. Only the top is visible, and a huge part of the preparation is hidden from your eyes. And this is where those who play an important role in the procurement, coordination, and logistics of your event most often hide.
Now we are aware of the whole essence of this area. You just need to go to the appropriate office and thank your procurement specialists for the extensive and extremely important work!