Organization of interaction between industrial consumers and suppliers within the framework of procurement procedures: problems and solutions at the micro level

V. I. Pleshchenko ()

Russian Journal of Industrial Economics, 2017, vol. 10, issue 1

Abstract: The article discusses various approaches to procurement of products for production needs, analyzes their advantages and disadvantages. It is shown that, in spite of expanding the practice of purchasing goods from the single source for modern industrial enterprises typical for Western countries in Russia approaches to alternative suppliers, competition of various bids of participants of procurement procedures are still preferable. When analyzing the problems at the micro level, a special importance of the stage of preparation for the purchases on which to assess the reasonableness of the transaction costs of the participants, their adequacy in relation to the parameters of the proposed transaction and current market conditions is paid. Since modern relationship of parties must not match a “zero-sum game†model, to ensure the efficiency of procedures the buyer should find a point of balance with participants. The author believes that procurement model which is popular today could be efficient mostly on short distances. Expansion of the bidders can increase the result, but in this case the organizer faces new risks and challenges. Therefore, in the long term as a more rational option for industrial companies appears the structuring relations with suppliers to use models of market purchases of materials of industrial purpose, more suitable for the development of partnerships. Industrial consumer needs to implement a balanced regulation of contractors crowd with forming a competitive environment of loyal suppliers.Â

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ach:journl:y:2017:id:576

DOI: 10.17073/2072-1633-2017-1-053-058

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