organization structures are a way to customize the objectives, tasks and measures for individuals and groups of individuals to achieve the company's goals. One of the factors in deciding on the proper structure is to think about whether common tasks, such as a purchase or not, should be centralized or decentralized canceled. Here are some of the reasons for the existence of the structure of centralized procurement.
1. allows scarce resources to be acquired. For example, each unit may be the work needed between now and then to purchase a certain skill (such as buying a utility), but not on what the need is going on. Centralized procurement will enable them to acquire this skill and shared among all units.
2. lets you monitor opportunities to enhance spending. It can be the case that the individual business units in the de centralized organization buy similar items, but very low quantities to get the best price. Central organization has a vision each district to be able to spot this and go to the market to total requirements.
3. experience can be better to participate, and so on up the team skill. Buyers who work in decentralized organizations do not often get the opportunity to exchange experiences and ways of working with their colleagues in other business units. Often this kind of informal conversation occurs through casual conversations around the coffee machine. Likely to occur in the central organization where communication is a lot of these share tips and techniques.
4. reduces the likelihood of duplication of efforts. If it worked various business units in similar markets and develop similar ways to work and this can add up to significant duplication of effort and diminished effectiveness. This spotted more easily solved if procurement team works centrally.
5. reduces the likelihood of multiple procedures and processes. Especially if you put this on common applications such as spreadsheets, can you end up with multiple processes and multiple sources of data, all unknown to others in the organization.
generally the answer lies in how mature the organization in terms of purchases. If, for example, there are a lot of buying out the contract for the time being and then central organization that allows you to control. When purchasing operations and performance monitoring is a mature you can think about decentralization.
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