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Purchasing Structures/Models

There is a recent trend toward designing hybrid, centre-led procurement models which merge the most beneficial elements of centralised and decentralised structures (Trautmann et al.)

Information about Purchasing Structures/Models

Purchasing structures/models should "be congruent with the overall organisation of the enterprise of which purchasing is part" … and are determined to some degree by an organisational external and internal environment (Lysons and Farrington, 2006:158).

Over the past decade purchasing models have gradually shifted from decentralised structures to more centralised models to capture the purchasing savings from consolidating organisational spend (Nellove and Soderquist, 2000; Steele and Court, 1996; Trautmann et al., 2009). Centralised purchasing implies that purchases are made from company headquarters or at a regional/divisional level (Lysons and Farrington, 2006). Its advantages include economies of scale, and greater coordination and control of activities (Lysons and Farrington, 2006).

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