The main goal of writing a final paper entitled "Management of procurement in Petrokemija d.d., Kutina" was, first of all, getting to know the function of the supply department of the company. This goal is shown by the role and importance of management with concrete examples and analysis on procurement management in the company Petrokemija d.d. Supply today represents one of the most important functions of the company. Supply department needs to justify its meaning and meet the requirements of enterprises and to that it should be integrated as an equal hierarchical function. Supply department must work closely with other segments of the company and connect these segments with suppliers. All that in order to harmonize the relations between internal holder needs and market participants. This implies cooperation of supply department with sales, production, finance, development department and with suppliers. The success of many other functions in the company depends on the successful functioning of the procurement department. Staff procurement, except with knowledge of materials and products, must be familiar with the technological process of their production, in order to purchase the business conducted within the framework of anticipated costs. The task of supply department is that with the care of the supply of goods and services, they strive to be in the right place and at the right time with the knowledge and capabilities of suppliers. To be motivated to do this kind of business supply department should function as a profit center, and staff procurement should be stimulated to do creative work.