ISSN (print) 1995-2732
ISSN (online) 2412-9003

 

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Abstract

Problem Statement (Relevance): Industrial enterprises are working in the highly competitive world market having irregular demand for the products. Under the present conditions enterprises need to improve their operation to keep their positions in the market, and as any production is material-consuming, procurement becomes the most important element influencing the competitiveness of the enterprise in the market. Even small improvement of purchasing processes can become a decisive factor in the competition. To ensure efficient management and optimal strategic decision-making in the field of purchasing, it is necessary not only to analyze external environment, but also assess the purchasing activities of the organization regularly. However, at present, there is no unified set of indicators allowing us to assess procurement performance of industrial enterprises. Objective of the research: To develop the balanced system of procurement performance indicators for industrial enterprises of the Russian Federation. Novelty of the research: For the first time, we propose the mechanism to make an integrated quantitative assessment of procurement performance of industrial enterprises based on the balanced scorecard. Findings: Applying the research performed and summarized data on procurement performance criteria and indicators proposed by both foreign and Russian authors, we developed the balanced system consisting of 29 indicators, including financial performance, business process indicators, training and development of personnel as well as the indicators focusing on satisfying the clients’ requirements. Practical Relevance: The developed set of indicators is a complete tool used to assess procurement of any Russian enterprise and then to take efficient management decisions on purchasing based on obtained quantitative data.

Keywords

Procurement, purchasing, procurement performance assessment, procurement performance indicators, industrial enterprises.

Anna G. Nikolaeva – Head of the Education and Methodology Department, Higher School of Technology and Energy, Saint Petersburg State University of Industrial Technologies and Design, Saint Petersburg, Russia. E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

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