Procurement logistics

Procurement logistics is a logistics system linked to the market and refers to the route of operating materials, auxiliary materials and raw materials as well as finished goods from the supplier to the buyer. These goods and commodities are not produced independently by the company or the buyer and must therefore be procured externally.

Procurement logistics creates a link between the supplier's sales logistics and the buyer's production logistics. Consequently, the supply of the buyer company's production with the necessary equipment and goods is ensured.

The functions of procurement logistics include goods receiving and goods inspection, warehousing and stock management as well as warehouse dispositions. Furthermore, internal transports as well as the planning and control of the material and information flow are in the foreground.
Basically, a distinction is made between three different types of procurement:

1. individual procurement on demand: one-time purchase or subsequent delivery of missing materials
2. stock procurement: creation of warehouse stocks
3. production-synchronous procurement for further processing or just-in-time concept (JIT): procurement of goods that are needed for production at that point in time