Improvement of the Procurement Activities on the Example of the Trading Company

Construction - has a key role in the socio-economic development of the country. At the moment, there are many factors that hinder the successful functioning of companies - rising prices for construction materials, increasing number of fraudulent suppliers, shortage of construction equipment. In this regard, procurement is crucial to ensure efficiency, transparency, and sustainability of construction projects. Procurement makes up a significant part of the budget of construction and trading companies, so optimizing this process directly affects the profitability of companies. An efficient procurement process reduces company costs and improves product quality through mutually beneficial cooperation with suppliers on the basis of transparent and long-term relationships, as well as allows to negotiate the best payment terms and discounts for the clients. Moreover, a properly structured procurement process allows to maintain an optimal level of inventory, reducing storage costs and minimizing the risks of shortages. The current final qualification work is devoted to the study of opportunities to improve the procurement process and supplier management for the trading company “Kars Group”, which supplies construction materials for infrastructure projects. Optimization of the company's procurement activities will increase profits by reducing the cost of procurement, as well as increase the number of completed orders by selecting reliable suppliers. As a result of the work, a procedure was developed to improve the procurement process by eliminating bottlenecks, concluding long-term partnerships, and implementing a process for selecting and evaluating the performance of suppliers. Cost effectiveness was proven through the use of a strategic profit model. Internal company data, as well as local and foreign studies and best practices were used as sources of information. The study consists of 185 pages, 68 figures and 47 tables, and contains 65 resources. The results obtained can be used by construction companies, suppliers and other market participants to make informed purchasing decisions and improve their activities.