The role of the purchasing department in shipping companies: selection criteria and appraisal of suppliers
Master Thesis
Συγγραφέας
Χάλαρη, Νικολέττα
Chalari, Nikoletta
Ημερομηνία
2021-05Επιβλέπων
Παντουβάκης, ΆγγελοςPantouvakis, Angelos
Προβολή/ Άνοιγμα
Λέξεις κλειδιά
Τμήμα προμηθειών ; Shipping companies ; Purchasing departmentΠερίληψη
One of the most important parts in shipping companies is the Purchasing Department,
as the purveyance on the vessels is a major part of the current expenses and a top
priority for each business. Purchasing is usually defined as obtaining the right quality
material, at the right time, in the right quantity, from the right source, at the right place
(Lysons and Gillingham 2003; Baily et al. 1998). Van Weele (2005) also defined
purchasing as the management of the company’s external supply of goods, services,
capabilities necessary for running, maintaining, and managing the company’s primary
and support activities is secured at the most favorable conditions. Although, there is
no agreed definition of purchasing from literature, these definitions indicate that there
is need for supply requiring to determination of specifications, supply continuity by
choosing a suitable supplier, efficient buying (worth the value), and relationship to
ensure supply at the right time to manage inventory and monitor efficiency of
suppliers thereby defining the purchasing function. This happens as even a short delay
in supplying vessels with necessities can affect not only the profitability but also the
reliability of a shipping company. Therefore, it is necessary to organize and operate
the Procurement Department according to each company’s business policy. The main
purpose of this desertification is to record and analyze the procedures followed by the
Purchasing department of shipping companies, its operation and interaction with rest
departments and to clarify the criteria which are used to choose and evaluate the
suppliers. In order to achieve such a result, each department of a shipping company
will be briefly described focusing on the connection with the Purchasing Department.
Afterwards, the procedure that is followed depending on the company’s business
policy and the types of goods needed to be supplied will be explained. Last but not
least, the selection criteria for suppliers will be specified so as to conclude to “proper”
suppliers for each company.