The procurement logistics has to ensure the economic supply of the company with not self produced raw materials and supplies, trade goods and buying parts in line to the demand. Especially in medium-sized and large companies, the procurement logistics quickly reaches a high level of complexity which is difficult to master. The complexity arises primarily due to
- the diverse and heterogeneous tasks and targets in the functional departments of purchasing, materials management and logistics,
- the numerous to be optimized in-house interfaces (e.g. between materials management and production) and
- the high number of individual business relationships with suppliers, which require continuous reviews and adjustments (see figure below).
Increasing cost pressure, volatile customer demands, decreasing real net output ratios and increasing requirements for the quality and delivery reliability put a tremendous pressure on procurement managers. Therefore, decision-makers in procurement are required to constantly monitor and improve the procurement processes, strategies and concepts in order to realize an efficient procurement. In addition, the procurement logistics needs to be designed so that it can be quickly and flexibly adapted to changing conditions in the business environment at any time; it has to be changeable.