Impact of the procurement policy on financial efficiency of operating systems in the Republic of Srpska

Abstract

Relations between business functions have positive and negative relations and impacts on financial performances in business. In the present paper, the focus is on the relationship between the function of procurement and the financial function, indicating to their interdependence and the impact on financial performances. An illustration of the relation between these functions is performed on the basis of indicators of the economy business of the Republic of Srpska. Namely, the paper presents the position of the business cycle and the cash cycle of business systems in the Republic of Srpska, including the state on the market based on two parameters, where we made a comparison of the relationship between the number and the structure of the business systems, and the coverage of exports by imports, according to the structure and the value harmonized with the Standard International Trade Classification.

Keywords

• the function of procurement
• financial function
• financial performances
• business cycle
• cash cycle