What is Centralized Procurement?
Centralized procurement is a procurement model in which an organization manages all of its procurement activities through a single central purchasing department or team. In this model, all purchasing decisions, from selecting suppliers to negotiating contracts and placing orders, are centralized in one location or managed by one team.
The objective is to facilitate the consolidation of common buying requirements and standardize buying processes at various business units.
Advantages of centralized procurement include leveraging purchase volumes, reducing duplication of purchasing efforts, co-ordination of purchasing strategies and plans, meeting corporate goals, and better stakeholder management.
