engleski

Procurement standards of multinational companies

Procurement as a function of an enterprise is one of the most important segm ents of business and as such requires special attention. In small and medium-s ized enterprises, the procurement function is under the direct control of the owner and is only ra rely left to highly experienced employees. With intelligent procurement, significant savings can be achieved, which generates a multiplier effect for the final cost of production. In large companies , the procurement function is also of great importance, and when acquiring and merging larg e companies, the procurement department is integrated with special attenti on and is left to experts with extensive experience in that area. The paper is based on a recent acquisition of the co mpany Hrvatski duhani, sold by ADRIS group to the British company British American Tobacco (BAT), which is characterized as being of significant importance to the entire economy of the Republic of Croatia and beyond. The aim of the paper is to show the features of the procurement function, as a function of special importance, and, on the example of acquisition of a large Eastern-Croatia company by a larger multinational company, show how the procurement department is to be integrated. It is shown how procedures and authority were implemented and what the effects of such integration were. It indicates the main determinants of procuremen t function in such large systems and to which activities special attenti on is paid. The paper gives an analysis of the activities that are left to the local partner, and of those which are determined centrally, without the po ssibility of influencing them directly.

procurement, procurement function, procurement implementation.

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