03-25-2008, 01:27 PM
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Procurementtips Member
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Join Date: Mar 2008
Russia
Posts: 2
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foreign procurement office. need help.
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Hello dear sirs!
First a little preface. Our company - is a mining and processing enterprise. We have 4 mines and 4 chemical farms. We are exploiting the second world field of potass. (1st one is in Canada). And right now we are reconstructing the majority of our productions complexes and building one more mine - the 5th one. So you can understand - we have quite large structure. Our capitalization is more then 13 bln doll., we have more then 10000 employees.
I'm working in the department of materially technical procurement. Right now we have great range of foreign suppliers. It is quite difficult to work with them straight on, so we use on german company as a general supplier. But as you can understand they also work with our competitor, have their own margin (i think not very great within one deal, not more then 10 %) but according to the volumes of equipment that we buy - it should be several tens of million euros per year.
So, we have an idea to create our own foreign department of purchasing (office, representation, etc) somewhere on the territory of Europe. Right now I need to identify if there is some kind of such experience of some company.
If it is possible, please help me, I want to get answers to the following questions (in my opinion it will be quite an interesting discussion). Our russian procurement specialists were unable to help me, and I think it will be beneficial experience for all of us.
1. Aims and purpose of creation of foreign import office
2. Organizational structure of this office, it's organizational form (ltd or just part of our company)
3. staff composition of office (to hire foreigners or relocate best of specialists)
4. functions of office
5. the place where to establish it
6. the methods of import procurement of office
7. law aspects (world experience in this theme)
8. correlation of office with org. structure of head company
9. organization of job and stages of establishment office in Europe
10. risks of organization
11. financial aspects of the work of office
12. economic results and effects of creation of office
Looking forward for your replies. I think it will be an interesting dicussion. I'll give you all the results of the job that we'll make.
Sincerely and hopefully.
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