Value chain: Procurement

The procurement organisation in companies is subject to many challenges. On the one hand cost pressure leads to lower prices and pressure to further reduce cost factors for products while on the other hand subjects such as security of supply and speed of supply are becoming more important to protect companies against loss of production and supply shortages. As the requirements for strategic purchasing are increasingly involving suppliers from non-EU countries, subjects as customs law and foreign trade law are gaining in importance regarding the procurement of intermediate products, raw materials, components, semi-finished products and commodities.
 
The following is an overview of the most important challenges which need to be taken into consideration in relation to procurement in companies through local suppliers and suppliers from other countries:

• Customs: Detection of goods traffic at the time of the incoming goods
• Export controls: Name screening for volatile vendors
• Preferences: Supplier declaration management
• Procedural master data: Multiple sourcing: multiple sources of supply lead to different master data for a product