procurement plan

The procurement plan is an essential tool for managing the procurement of materials in a company. It is used to procure the required materials and goods in the right quantity, at the right time and in the right place in order to ensure a smooth production process.

The information from the production plan is transferred to the procurement plan, whereby the type, quantity, time and place of procurement are determined. The quantity is determined from the requirements according to the sales plan and the scrap generated in production minus existing stocks. The type of materials and goods is based on the finished products to be manufactured, while the time is determined by the delivery times. The location indicates the source of materials and goods, be it internal production or external suppliers.

Effective procurement planning enables companies to optimize their stock levels, avoid bottlenecks and reduce costs. Through integration with the production plan, material procurement and production can be optimally coordinated, resulting in efficient use of resources.

In addition, the procurement plan supports supplier relationships and enables timely communication with suppliers to avoid supply bottlenecks or delays. This helps to keep the supply chain stable and increase customer satisfaction.

Overall, the procurement plan is an important tool for optimizing procurement processes and ensuring an efficient flow of goods throughout the supply chain. Precise and well thought-out procurement planning is crucial for a company’s success in the market.