Professional paper

Organizational structure of procurement business process

Ljudevit Krpan orcid.org/0000-0002-4355-7912 ; Sveučilište Sjever, Sveučilišni centar Varaždin, Hrvatska
Diana Varga
Robert Maršanić

Abstract

In the past, procurement mainly dealt with administrative tasks regarding ordering goods and reporting defects on the delivered goods, as well as storing and issuing of materials according to user requirements. Today, the procurement is to a lesser degree a function with tactical tasks related to carrying out requests for procurement at low purchase price, as is increasingly becoming a strategic function whose decisions are based on the philosophy and policy of value creation and reduction of overall costs in the supply chain. Therefore, this paper is based on the following research hypothesis: Selection of optimal organizational structure of supply and procurement service optimization significantly affects the operations and business results of the company. The purpose of this paper is to demonstrate that the optimal form of the organizational structure of procurement affects the efficiency of operations and ability to optimize procurement service in companies. The research objective is to highlight the basic organizational forms of procurement service in companies and public bodies through theoretical and practical studies and to present an example of organization of procurement service in a company that manufactures wooden models for foundries.

Keywords

procurement; procurement organization; organizational structure; services procurement

Hrčak ID:

146256

URI

https://hrcak.srce.hr/146256

Publication date:

15.9.2015.

Article data in other languages: croatian

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