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.)
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).
Return to SRM and SC Management topic.
Return to Strategy and Policy topic.
Third sector social enterprise has a long history, from the co-operative movement of the 1800s to the long trading activities of many charities, of which The Chartered Institute of...
Find out more
There appears to be an almost unstoppable march towards more and more global sourcing. If we perceive that everyone else is going global, shouldn’t we?
The world did not proclaim the dawn of globalisation the moment McDonald’s opened its doors in Beijing, or when Vietnamese factories reeled off their first Nike trainers. The term...