Application of functional-process approach for the organization of wholesale intermediaries activity

Abstract

Introduction. Modern economic system is characterized by a large number of intermediaries that provide movement of goods from producer to final consumer. The necessity of wholesale intermediary enterprises is caused by the fact that they can solve the fundamental conflict between economic efficiency of mass production and efficiency of individual consumption. This is achieved through the implementation of various intermediary functions: commercial functions of sales promotion and formation of product range and also production, financial and informational functions. Therefore it is important to find effective approaches to the management of these enterprises.

Purpose. Justification of functional- process approach efficiency to the organization of the wholesale intermediary, the development of scheme of functional-process approach to management of wholesale intermediaries have become the objectives of the study.

Results. Advantages and disadvantages of functional and process approaches are determined. The main idea of functional approach of the management is to fix system of functions to certain elements that they could perform independently from other units of the structure and could interact with them through the division of labor and exchange of material products. Company management is realized through orders, permits, which move vertically, according to the fixed hierarchy. Process approach to management considers the company as a set of business processes that creates value for the customer. In comparison with the functional approach that devides all company into units that are responsible for a specific function, the process approach combines these functions on the basis of the concept of "creating value for the customer ". Application of functional-process approach to organization of the wholesalers activity has been proposed. The scheme of functional-process approach to management of wholesale intermediaries has been developed.