In this paper work it is explained what procurement is, what types of procurement exist, how the procurement development process went and what are its goals and purpose. It is clarified the organization of procurement considering to the place of procurement in the organizational structure and which procurement policies exist. For example, is shown the procurement business of the company "Vodomaterijal d.d." which is a shareholding company for domestic and foreign trade. The owners are small shareholders. The main activity of the company is wholesale and retail of materials and equipment for the construction of water supply systems, stormwater and wastewater drainage, drainage systems, natural gas supply, and bathroom equipment, central heating equipment and fire extinguishers. They use two principles of the concept of procurement logistics, which are individual procurement in case of need and procurement with holding stocks. Less often and more expensive commodity they order by specific order, because it is not worth keeping it in stock. Since the company is small, the same person in the commercial does the procurement and sales work.