Abstract

The procurement process is of great importance for the business success of the company. The effectiveness of a business depends to a great extent on the ability to use the environment in the procurement of resources necessary for functioning. The aim of the research is to identify the main problems in forest management in the South Morava Forest Area (SMFA), in the production and sales of beech roundwood, as well as to determinate the characteristics of the companies and the organization of the raw materials procurement process. The data were collected in the period 2014- 2017, by surveying 13 representatives of small and medium enterprises and 1 large company and interviewing 5 employees of Forest Estate ?Vranje? (Public enterprise ?Srbijasume?). The current situation in the SMFA is characterized by an unfavourable structure of beech coppice forests, inadequate forest openness and low wood mobilization from private forests. Analyzed companies are, mostly, micro and small (79.0%), founded (64.3%) less than 10 years ago, and 50% of them are engaged in sawmill and wood processing. All companies purchase and use beech technical roundwood. Wood raw material is purchased from the public and private sectors. Transport of raw materials is carried out through intermediaries (92.9%) and on ?bad? and ?very bad? (71.0%) infrastructure. However, the majority (92.9%) of them are ?partially satisfied? and ?satisfied? with the quantity and quality of delivered raw materials. There is a significant presence (86.0%) of enterprises, which, in addition to technical roundwood, procure and use other wood products (fibreboards and other reproduction materials) from suppliers from other regions. Based on the analysis of all collected data, places for improvement of wood raw materials procurement and the weaknesses of existing supply chains have been defined, as well as the proposals for improving the organization of the procurement of wood raw materials at SMFA.

Highlights

  • The process[1] of procurement refers to the acquisition of raw materials and / or products for2011)

  • The aim of the research is to identify the main problems in forest management in the South Morava Forest Area (SMFA), in the production and sales of beech roundwood, as well as to determinate the characteristics of the companies and the organization of the raw materials procurement process

  • The analyzed situation in the growing stock and the procurement process in the existing wood supply chain (WSC), according to the respondents’ attitudes, suggests that it can be difficult to increase the supply of beech technical roundwood at SMFA without the environmental incentives, especially when it comes to: –– finding a solution for increased mobilization of private forests; –– promoting and stimulating the opening of small and medium enterprises for the provision of forestry services;

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Summary

Introduction

The process[1] of procurement refers to the acquisition of raw materials and / or products for2011). For this reason, close cooperation with key suppliers “...brings benefits in terms of ensuring good quality of raw materials, reducing costs, increasing competitiveness, etc.” (Ka n n a n , Ta n , 2006; Ku l i k, 2010). The problem of procurement in enterprises engaged in the production of furniture and wood products from Serbia is complex and is related to the regulation and the overall organization of activities from the forest as a source of wood raw material until the end-use of wood products in the domestic and foreign markets (M a rc u s et al, 2010; Va s i l j evi c, 2015)

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