Strategically supplier-oriented management in the procurement process of JSC “Russian Railways”

  • Received August 28, 2017;
    Accepted June 11, 2018;
    Published July 5, 2018
  • Author(s)
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  • Article Info
    Volume 16 2018, Issue #3, pp. 14-27
  • Cited by
    4 articles

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

JSC “Russian Railways” is one of the world’s largest companies in the railway market. It ensures the safety and accessibility of transport in Russia, reduces the transport load on its economy. JSC “Russian Railways” is a company founded by the Russian Federation. In the conditions of the global financial crisis and limited budget resources, the search for ways to reduce the costs of its operation comes to the forefront. In the supply, there is a significant potential for increasing the efficiency of any company’s activity by saving on purchases in the case of choosing a key supplier that meets all customer’s criteria. In turn, the growing relevance in modern conditions is acquired by strategically supplier-oriented management in the process of meeting the needs and requirements of companies. In this regard, the article substantiates the need for strategically supplier-oriented management of commodity and material values in supply chains, systematizes supplier management strategies. The experience of procurement and selection of suppliers of goods, works and services for the needs of JSC “Russian Railways” was studied, a methodology was proposed for ranking criteria for the selection of products and suppliers in order of the decreasing significance value, allowing to expand the method of rating the existing and potential sources of supply.

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    • Figure 1. Cost of procurement contracts for goods, works and services in JSC “Russian Railways”
    • Figure 2. Structure of products purchased in JSC “Russian Railways”
    • Table 1. Overall matrix of ranks
    • Table 2. Calculated matrix of ranks
    • Table 3. Distribution of the criteria in order of the significance value
    • Table 4. Matrix of transformed ranks
    • Table 5. Overall matrix of ranks
    • Table 6. Calculated matrix of ranks
    • Table 7. Distribution of criteria in order of the significance value
    • Table 8. Matrix of transformed ranks
    • Table 9. Summary matrix of the transformed rank criteria for the selection of goods (services) and suppliers
    • Table 10. Methodology for evaluating inventory items and suppliers by calculating ratings