Centralized or Decentralized Your Procurement Operations?

No One Size Fits All

Centralized & Decentralized Purchasing Using SAP

Streamlining Your Inventory Management

To centralize or not to centralize your procurement operations? That is the question. For large and rapidly growing organizations, it takes an abundance of resources and advanced tools to operate at a peak level. Ensuring efficiency comes down to one key factor: your ability to obtain what you need while minimizing spend.

Each structure—centralized or decentralized has its advantages. But diving in deeper, both purchasing structures come with promises and betrayals.

Harkening back to the statistics 38% favor centralized purchasing, 22% favor decentralized purchasing and 36% function in a coordinated approach it is fair to draw this conclusion. Most purchasing organizations prefer to manage with fewer resources and obstacles to compliance than move forward with limited leverage and consistency. The key to optimizing procurement comes from finding the right balance between centralized and decentralized structures while mitigating the disadvantages.

Through such a hybrid structure, organizations would be able to leverage pricing and a standard approach along with user buy-in and more experienced resources.


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