0
Advantage and disadvantage of centralization and decentralization purchasing?
Wiki User
∙ 10y ago
The primary benefits of a centralized purchasing function are cost-savings and standardization of the product or service purchased. The downside of centralized purchasing is the lack of control or choice by the end-user. If an end-user does not adequately communicate requirements (for example, quality and delivery) of a purchase to the centralized purchaser then there can be suboptimal results.
Wiki User
∙ 13y ago
Wiki User
∙ 10y agoCentralization provides advantages to purchasing because it offers the company the ability to purchase in larger quantity, which results in better pricing. The disadvantage to centralization is that higher management is segregated to the main locations. Decentralization is better for more individualized segments; however this option does not offer better purchasing discounts.
Add your answer:
Earn +20 pts
Disadvantages of decentralization?
advantage and dis advantage of centralization and decentralization advantage and dis advantage of centralization and decentralization
What are the advantage and disadvantage of centralization and decentralization in a company?
Centralization in a company makes sure that there is one unit of command that avoids confusion of orders. The problem comes when that one unit of command is not available and nobody knows what to do next. Decentralization helps the company to have each department operating in autonomy and in its best focus.
What is the advantage and disadvantage of centralization?
chut and land
What is one advantage and one disadvantage of buying from mail-order catalogs?
One advantage to purchasing from a catalog is the fact that you didn't have to go out. A disadvantage is the fact that you have to pay shipping costs.
If my television signal is 720p, is there any advantage or disadvantage to purchasing a 1080p television?
No, the only advantage would be with video games or dvds/Blue Rays.
What is the definition of centralization and its advantages and disadvantages?
A centralized organization is one in which one person makes all of the decisions. An advantage to that is that the organization is always in sync. A disadvantage is the fact that it will take longer to react to the industry.
What are the advantages and disadvantages of purchasing a John Deere 4720 for farmland?
The advantage of purchasing a John Deere 4720 for farmland is the quality of the brand that you are buying. The disadvantage is the repair and maintanence of this machine.
What are the advantage and disadvantage of fidelio?
What are the advantage and disadvantage of fidelio?"
Advantage and disadvantage of workshop?
Advantage and disadvantage of workshop
What are the advantage and disadvantage of branch libraries?
what are the advantage and disadvantage branch libraries
What are the advantage and disadvantage of sampling techniques?
what are the advantage of and disadvantage of sampling method
What is the advantage and disadvantage of market free?
advantage is its fpree. Disadvantage is that its not fpree.
