advantages and disadvantages of centralized and decentralized purchasing pdf
{"Image DocumentName": "Centralization vs. Decentralization in Purchasing", "Image ImageDescription": "Centralize for greater cost control and corporate leverage. Decentralize for nimbler procurement responsiveness. Centralize procurement of common products. Decentralize procurement of specialized products. Align purchasing structure with corporate strategy, structure, and size. Learning Objective 2: Explain the advantages and disadvantages of centralization and decentralization. Centralization Vs. Decentralization in Purchasing. This slide presents the global best practices tips from PriceWaterhouseCoopers in procurement. Ask the students \u2013 Looking at he five bullets, what is their assessment with regards to should organizations use centralization or decentralization in purchasing decisions? It is argued that \u2013 it should depend on the strategy, structure and size of the organization when it comes to purchasing. Larger organizations have the purchasing power but if the efforts are not coordinated, it does not materialized. Smaller organizations can operate through co=op type of situation to get the volume/size needed. However, it should be moderated with the strategy and structure of the organization. If the structure is centralized, purchasing cannot be decentralized effectively. Furthermore, centralization gives cost control but decentralization offers faster responsiveness. Therefore, again, it depends on the strategy of the firm. Source: Global Best Practices, Pricewaterhousecoopers. Source: Global Best Practices, Pricewaterhousecoopers.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}