Abstract
Small enterprises start to cooperate with each other in order to improve their financial situation. They combine to create various types of multi-entity organizations such as group purchasing organizations (GPOs). This is to provide enterprises with an improved financial performance and operational safety in the market. In general, enterprises operating within GPOs are managed by a specially created company which can be defined as a central unit. It is responsible for the flow of supplies, cash, information on the producer - company line. In order such transactions could be carried out efficiently, the central unit must have a stable financial position. The aim of the article is to assess the financial situation of central units of selected purchasing groups. The research conducted showed that the central units had a stable financial situation. Their activity is profitable. The only disadvantage that can be observed is low financial liquidity. For the safe operation of the central units, it is necessary to maintain a faster rotation of receivables in days from the rotation of liabilities towards suppliers on days. This will allow the purchasing group's central unit to function safely in the marketKeywords: central unit, group purchasing organizations, financial situationJEL Classifications: G30; G33; L15DOI: https://doi.org/10.32479/irmm.8061
Highlights
IntroductionIn order to survive in the market companies merge and work together in multi-stakeholder organizations, referred to as group purchasing organizations (GPOs)
They were divided according to the type of central units of purchasing groups into internal and external central units
All analyzed units have low financial liquidity. They are not threatened by a loss of financial liquidity, in the interest of the companies making up purchasing groups, it is repaying its liabilities towards central units in a timely manner
Summary
In order to survive in the market companies merge and work together in multi-stakeholder organizations, referred to as group purchasing organizations (GPOs). SMEs decide on this form of cooperation. They are forced by the market situation and high competition. Small and medium-sized enterprises that decide to operate within GPOs limit the freedom of making decisions. This is due to the fact that a purchasing group management unit appears for each purchasing group. The aim of the article is to present the role of the central unit in the purchasing group and assess the financial standing of central units operating in the construction industry
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