Centralised/Decentralised Procurement
Created to support procurement professionals in their decisions on the structure of procurement departments, the concept provides useful information on the advantages and drawbacks of both structures, as well as some implementation advice.
Technique Overview
Centralised/Decentralised Procurement Definition
Centralised procurement implies that purchasing decisions are made either by company headquarters or some regional or divisional level. A decentralised procurement function means that an organisation’s activities are spread over a number of plants or locations. More recently, it also refers to purchasing delegated to actual users (Lysons and Farrington, 2006).
Centralised/Decentralised Procurement Description *
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Business Evidence
Strengths, weaknesses and examples of Centralised/Decentralised Procurement *
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Business Application
Implementation, success factors and measures of Centralised/Decentralised Procurement *
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Professional Tools
Centralised/Decentralised Procurement videos and downloads *
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Further Reading
Centralised/Decentralised Procurement web and print resources *
Centralised/Decentralised Procurement references (4 of up to 20) *
- Arnold, U. (1999) Organization of Global Sourcing: Ways Towards an Optimal Degree of Centralization. European Journal of Purchasing and Supply Management, Vol. 5(3-4), pp. 167-74.
- CIPS Australia: Building the Case for Centralisation in Public Procurement.
- CIPS Australia: Six Essays on Procurement.
- Croom, S.R. (2000) The Impact of Web-based Procurement on the Management of Operating Resources Supply. Journal of Supply Chain Management, Vol. 36(1), pp. 4-13.
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