The influence of procurement logistics strategy on organizational hierarchies: Strategic, tactical, and operational perspectives

Bányainé Tóth, Ágota (2024) The influence of procurement logistics strategy on organizational hierarchies: Strategic, tactical, and operational perspectives. ADVANCED LOGISTIC SYSTEMS: THEORY AND PRACTICE, 18 (4). pp. 73-88. ISSN 1789-2198

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Abstract

This article discusses the impact of key procurement logistics tasks on strategic, tactical, and operational levels within organizations. Procurement activities such as supplier selection, make-or-buy decisions, and the implementation of just-in-time (JIT) and just-in-sequence (JIS) supply systems significantly shape long-term corporate strategies by aligning supply chain objectives with business goals. Outsourcing and the choice between centralized and decentralized procurement approaches influence tactical decisions, affecting cost efficiency, flexibility, and risk management. At the operational level, decisions regarding transportation modes and loading unit selection ensure the smooth flow of goods and materials while optimizing daily operations. The integration of these procurement functions strengthens organizational resilience and enhances responsiveness to market dynamics. This article emphasizes the interconnectedness of procurement tasks across hierarchy levels, demonstrating how strategic alignment improves supply chain efficiency. Tactical adjustments provide adaptability, while operational decisions support seamless execution. The findings underline the critical role of procurement logistics in achieving overall business competitiveness. By analyzing these functions, this research provides insights into their cascading effects across organizational hierarchies, contributing to the development of more robust procurement strategies.

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