Analysis of Procurement in Azerbaijan

The operations of virtually any business depend largely on having sufficient quantities of raw materials, supplies, and components, which are purchased from other companies. Even a small office requires equipment, furniture, communication tools, and other essentials. And for large businesses, procurement constitutes a significant portion of their operations.
A comprehensive procurement analysis helps optimize, partially automate, and simplify procurement processes. And RBC Group offers you comprehensive solutions for this task.

Procurement Analysis and the Company’s Logistics System

A procurement management system is a complex, multi-tiered structure that is built, in part, on the results of an analysis of the company’s procurement activities. It is designed in accordance with the established goals and objectives of procurement management.

The analysis itself typically consists of six components:

1. Review of current procurement terms and the supplier market.
2. Monitoring the company’s procurement budget.
3. Comprehensive analysis of the company’s financial performance.
4. Rigorous quality control of the products the company purchases.
5. Monitoring the delivery process for materials, components, or finished products from suppliers.
6. Analysis of the demand forecasting system.

Depending on the goals and objectives set, this list may vary. Some items are removed, while others are added. Optimizing the procurement process is a highly customized endeavor that requires a comprehensive approach and the implementation of modern solutions. RBC Group provides precisely these solutions.

How procurement analysis and optimization help businesses in practice

Let’s elaborate on the above and examine how these measures help optimize workflows at various levels.

For business owners and executives

Owners and executives can monitor the procurement department’s performance metrics at all levels, analyze procurement processes, reduce costs, gain a deeper understanding of the working conditions of suppliers and procurement managers, or review individual transactions.
All necessary information is displayed clearly and is easy to understand, and you can view it from various devices for even greater convenience. Review procurement plans, price changes, delivery deviations, metrics for different periods, and much more. And all of this—with a single convenient tool.

For category managers and buyers

For this category of users, procurement analysis is a useful tool for identifying misallocated funds, standardizing procurement managers’ work, reducing product defects, and preventing excess or shortages of materials, components, and other items in inventory.
With the RBC Group app, you can perform comparative and dynamic analysis to obtain more objective and accurate results and work with up-to-date data.

For IT Directors

Our procurement management system allows you to import data from various systems and sources, processes large volumes of information quickly, and supports scalability and deployment on Windows and Linux.
When changes are made, the analysis results are displayed as quickly as possible, enabling you to address business challenges more efficiently. We offer a truly flexible tool for independent analysis without the need to engage third-party specialists.

How analyzing procurement activities helps reduce costs and optimize business operations

Optimizing the procurement department’s operations is physically impossible without conducting a procurement analysis. This analysis helps address several key challenges:
•

• what to purchase;
• from whom to purchase;
• in what quantities to purchase;
• under what terms and conditions to purchase.

Once these challenges have been addressed, it is possible to establish an effective corporate logistics management system. This, in turn, provides the company with several critical advantages:

1. It enables improved demand planning and resource allocation for those company departments directly involved in production.
2. It makes it possible to reduce or even completely eliminate losses from defective products, as well as avoid losses of material resources during their transportation from suppliers.
3. Significantly reduces production waste, allowing for the effective use of recycled materials in some cases.
4. Eliminates intermediate warehousing in certain situations, thereby saving time and money on transportation from point A to point B.
5. Optimizes logistics by allowing for the most efficient use of vehicles’ load capacity, reducing the number of deliveries while increasing their volume.

More importantly, optimizing procurement helps prevent shortages or surpluses of materials, raw materials, or components in the company’s warehouses. This optimizes the company’s overall operations and prevents unforeseen circumstances related to product shortages or surpluses.

Procurement Management at Your Company Using RBC Group Tools

We provide our clients with a preconfigured solution for analyzing the company’s procurement data across all necessary dimensions:

• suppliers and buyers;
• procurement plans;
• order-specific details.

You’ll be able to easily analyze the price and quantity of purchased SKUs (stock keeping units), product delivery times, the number of returns and defective items, and more.
Our solution is designed for business owners, company directors, managers, procurement specialists, and other key personnel involved in the workflow. RBC Group’s procurement management system is already being used across a wide range of industries: retail, FMCG, banking, agriculture, manufacturing, the restaurant industry, and more.
If you’d like to learn more about how procurement analytics is performed using RBC Group’s tools, submit a request on our website. Better yet, request demo access to the “Sales Analysis” application to personally evaluate its benefits and functional capabilities in practice.