Strategic procurement basically means planning and implementation of all activities related to the identification and specification of needs, identification of decision criteria, initial evaluation of the selected supplier, selection of the supplier and monitoring of implementation to achieve long-term goals, not just the lowest raw material price.
The strategic level of procurement in Skaza could include activities such as: creating savings at the level of departments and the whole company, long-term planning, cost optimization and finding alternative suppliers, negotiating with existing and new suppliers, concluding contracts, developing suppliers and subcontractors, research of purchasing and forecasting availability, determining and following the procurement policy or some kind of code of ethics that we have established.
Like any other department, the strategic procurement department has set monthly and annual GOALS, the achievement of which is checked with the help of a large number of indicators. We set them ambitiously and high, so that they serve as a motivation and a tool for focus throughout the business year.
What do we pay attention to at our work?
One of the most important workdays that we pay attention to in our work is risk assessment or risk management, which can be brought about by the “wrong” choice of supplier. We control this part with the help of the Queen's matrix. The aim of using this matrix is to reduce the risk of purchasing products/suppliers while maximizing purchasing power. With the help of this, we purchase all the materials or. suppliers according to their estimated impact on profit and purchasing risk, divided into four groups. These are strategic, leverage, standard and critical suppliers. Each category in relation to suppliers requires a different approach, which we take according to the appropriate protocol.
In recent years, suppliers have also paid much more attention to the environmental aspect or care for NATURAL RESOURCES. In choosing suppliers, the supplier's attitude towards the environment, compliance with current legislation in this field, as well as self-initiative and a desire to be responsible for the environment and the resources it uses in its operations, play an important role. This part is also extremely important because in the company we really strive for all our stakeholders, together with us, to contribute to a more beautiful planet and care for it.
The strategic purchaser must be well informed in all areas when searching for a supplier or only certain purchasing materials, and his actions and decisions must be RESPONSIBLE with regard to the entire company. It is necessary to thoroughly review the financial condition, past operations, references and any other available indicators in the operations of potential business partners. In particular, this area will be one of the most important in the current period due to the onset of a potential crisis for some companies. It is also very important to have a very good knowledge of the technical and quality capabilities of this supplier, which should be viewed in parallel and compared with the needs of Plastika Skaza.
Cooperation as an important part of strategic procurement
A special area that we cover in the strategic procurement department is also cooperation. This means business cooperation or organization of production, usually by the division of labor, in which several members/companies participate.
The field of cooperation in terms of cooperation in the company Skaza has been going on for many years. In the last few years, this form of cooperation has moved to a higher level, but there is certainly room for improvement in this area. From the confirmation of subcontractors with end customers to the development of current subcontractors to a higher operational and quality level to the connection or. establishing business with some new subcontractors, which we have already added to our portfolio in the market review process, etc.
In the literature, we can see that cooperation is divided into four areas: development, technology, marketing and production cooperation. In the past, Skaza used only production cooperation, which means that the company was looking for subcontractors with a desire for a better production price, to increase available production capacity, sometimes at the expense of shortening delivery times or simply fulfilling all orders in a given period. In the future, we want to expand our field of activity to the field of medicine, which will require a lot of COURAGE, and at the same time this is an opportunity for cooperation to develop in technological and developmental form, and no longer only in production.
In our work, the field of cooperation and relations is extremely important. We want to establish a mutual, correct relationship with each of our suppliers, in which both parties are satisfied, and at the same time with our more than 40 years of EXPERIENCE, we can also help our suppliers. We are a kind of "trustees" of suppliers. We want to establish a set of competition, negotiations, mutual benefits and, above all, joint cooperation with suppliers. To transform and develop all this into as many strong, long-term strategic connections as possible.
Throughout the work in the department, we are guided by the values of the company, in which we strongly believe. The criterion of strategic procurement is therefore not only the price, but above all the selection of appropriate suppliers, planning needs and resources and managing the supply chain, ensuring delivery in the right time, in the right quantity and quality. In my work, I want to connect with experienced individuals in our company in areas that I have not fully mastered since I joined Plastika Skaza. I believe that with the common values we live and the transmission of knowledge between us, we can achieve many more and exceed many more expectations.
An excellent partnership is a key to success. Fill in the form below and download our case study about milestones while building the future of energy with one of our biggest partners for more than 15 years.