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

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 *

* The full technique overview is available for free. Simply login to our business management platform, and learn all about Centralised/Decentralised Procurement.

Business Evidence

Centralised/Decentralised Procurement Strengths *

Centralised/Decentralised Procurement Weaknesses *

Examples of Centralised/Decentralised Procurement *

* The business evidence section is for premium members only. Please contact us about accessing the Business Evidence.

Business Application

Centralised/Decentralised Procurement Implementation *

Success Factors of Centralised/Decentralised Procurement *

Measures of Centralised/Decentralised Procurement *

* The business application section is for premium members only. Please contact us about accessing the Business application.

Professional Tools

Centralised/Decentralised Procurement Videos *

Centralised/Decentralised Procurement Downloads *

* The professional tools section is for premium members only. Please contact us about accessing the professional tools.

Further Reading

Centralised/Decentralised Procurement Web Resources *

Centralised/Decentralised Procurement 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.

* The further reading section is for premium members only. Please contact us about accessing the further reading.


Learn more about KnowledgeBrief Manage and how you can equip yourself with the knowledge to succeed on Centralised/Decentralised Procurement and hundreds of other essential business management techniques