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Development of the Company's Category Procurement Strategy

Student: Nikolay Lesnichiy

Supervisor: Nikolay Nikolaevskiy

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Logistics and Supply Chain Management (Bachelor)

Year of Graduation: 2024

The development of a category-based procurement strategy for logistics services is a complex task that requires the involvement of management at various levels and a thorough analysis of the market for procured services, transport and forwarding companies, and competitors for transport resources. To make corporate decisions, it is necessary to clearly identify existing problems and provide well-founded calculations that demonstrate how the procurement of necessary logistics services will be carried out, the principles used in the selection of carriers, and the cost control levers available to the company's management. Nowadays, more companies are focusing on developing their procurement strategies, especially in the field of logistics. The main goal of such a strategy is to reduce transportation costs by utilizing the latest trends in procurement activities, reorganizing electronic logistics systems, and integrating carriers into strategic partnerships. The problem addressed in this thesis is to identify which aspects of procurement activities most effectively help the target company reduce logistics costs. The objective of the thesis is to study the aspects of the target company's procurement activities in the context of purchasing logistics services for the transportation of finished products by road. To achieve the objectives of this thesis, it is necessary to: Highlight the main concepts and approaches in the development of a logistics services procurement strategy. Determine key methods for evaluating logistics service providers (carriers). Analyze the current state of the target company's procurement activities. Develop recommendations for improving the procurement process. Perform calculations and forecast the effects of the new strategy (new approach). The object and subject of the research are the procurement processes of PJSC "SIBUR Holding." The theoretical methods used in this thesis include the study of textbooks, scientific articles, and the synthesis of information from various sources. Empirical methods involved calculations and the comparison of data sets provided by the company. The first chapter of this thesis analyzes the activities of PJSC "SIBUR Holding," providing an overall description of its economic activities. It also includes an analysis of the company's financial and economic activities, as well as an evaluation of its financial results. The third part of the first chapter examines the company's logistics activities related to the delivery of finished products. The second chapter describes the main theoretical aspects of developing a procurement strategy. It highlights key concepts and approaches in procurement strategy development and analyzes methods for evaluating suppliers. The third chapter focuses on the development of a category-based procurement strategy for the delivery of finished products by PJSC "SIBUR Holding." It reviews and analyzes the company's current practices, identifies macro and micro prerequisites for changing the current approach, and provides recommendations for improving the procurement of logistics services. Potential outcomes of the new procurement strategy are also forecasted. The study demonstrates that the implementation of the new procurement strategy can provide significant financial benefits for the company. The proposed recommendations will lead to a reduction in transportation costs, an improvement in the quality of logistics services, and an increase in the company's competitiveness in the market. In conclusion, applying modern methods and approaches in the development of a procurement strategy for logistics services will enable PJSC "SIBUR Holding" to achieve significant financial results and strengthen its position in the industry.

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