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A national company with many operating units must buy goods and services from a range of suppliers and sources.
In some cases there are economic and practical advantages to having all purchasing done by head-office. This is called centralised procurement. An example of this might be printed stationery, where head office decides the styles, identifies the best source, and makes a contract with one supplier. In this way they benefit from (a) bulk buying bargaining power, and (b) harmony of image throughout the country.
Decentralised procurement delegates the buying responsibility to regional offices. In this way their scattered divisions have relative autonomy.
There are pros and cons re centralised v. decentralised. Often it is found that some procurement needs are best dealt with centrally, and other matters are best left to the local offices to handle.
What else can I help you with?
What is manual procurement?
Manual Procurement is a process of providing the guidance om procurement steps and policies to all the people in the different stages of procurement actions.
What are the strengths and shortcomings of a decentralised approach to training managers and hourly employees?
cost
Who is the immediate boss of a procurement officer?
The immediate boss of a procurement officer is typically the procurement manager or director, depending on the organizational structure. This individual oversees the procurement department and is responsible for guiding procurement strategies, policies, and operations. In some organizations, the procurement officer may report directly to a chief financial officer (CFO) or another senior executive.
What are advantages of procurement plan?
Better align of procurement strategies with organizational objectivesimproved procurement advantagesBetter value for money outcomesbetter planning and risk management
How project procurement is different from operation procurement?
Project Procurement is where the decision to procure and the funding to pay the invoice comes from a project budget. Operational Procurement is where decision to procure and the funding comes from the general budget as the commodities or services are required for the overall operation. The method of making the procurement decision can be identical in both cases. OLD ANSWER project procurement is directly we search the material from the vendors and get the price of such lower price according to our project buget and the operation procurement is to lead the use of the material in accordingly. project procurement is directly we search the material from the vendors and get the price of such lower price according to our project buget and the operation procurement is to lead the use of the material in accordingly.
What is decentralised filing?
stuff
Is Asda decentralised?
maybe
Should the information systems function in a business be centralised or decentralised?
should the information system function in a business be centralised or decentralised
What is the meaning of decentralised?
to away from the headquarters
Distnguish between the centralised and the decentralised traditional political system in Nigeria?
Distinguish between the centralised and the decentralised traditional political system in Nigeria?
What is the difference between the centralised and decentralised departmentalisation?
centralised is a high degree of authority at the top of the hierarchy and decentralised is a high degree of delegated authority
What are forms of procurement?
Good question. In business, forms of procurement usually refer to the different ways organizations acquire goods, services, or works. Procurements can be classified based on supplier selection method, purchasing approach, or contract structure. Common Forms of Procurement Direct Procurement Purchasing raw materials, components, or items directly used in production (e.g., manufacturing inputs). Indirect Procurement Acquiring goods and services that support operations but are not part of the final product (e.g., office supplies, IT services). Goods Procurement Buying physical products such as equipment, machinery, or consumables. Services Procurement Engaging third parties for professional or operational services (consulting, logistics, maintenance, marketing, etc.). Works Procurement Contracting construction or infrastructure-related activities (buildings, civil works, installations). Procurement Based on Supplier Selection Open Tendering Any qualified supplier can bid; it promotes competition and transparency. Restricted / Selective Tendering Only pre-qualified or invited suppliers participate. Single-Source/Sole Procurement Purchasing from one supplier due to specialization, urgency, or compatibility needs. Request for Quotation (RFQ) Used for standardized, low-complexity purchases, usually price-focused. Request for Proposal (RFP) Used for complex purchases where technical capability and approach matter. Procurement Based on Strategy Local Procurement Sourcing from domestic suppliers to reduce lead time or support local industry. Global Procurement Sourcing internationally for cost advantages, technology, or capacity. Strategic Procurement Long-term, value-driven sourcing aligned with business goals. Spot/Tactical Procurement Short-term or urgent purchasing to meet immediate needs. In the working area, companies use a mix of these forms depending on cost, risk, urgency, complexity, and compliance requirements.
Difference between centralised and decentralised stationry?
Difference_between_centralised_and_decentralised_stationry
What is centralised and decentralised room service?
define services
What is a decentralised information processing system?
it is a computer software
Blockchain?
A Decentralised Network
What is the definition of decentralised?
decentralized government is a government to the right or left
