Decentralized Procurement – Meaning and Importance

20 Sep, 2024

What is Decentralized Procurement?

Decentralized procurement is a set of activities where each business unit or department is responsible for their purchasing decisions. Decentralized procurement is implemented in organizations wherein there are a wide range of products or services and purchasing authority is given to individual departments.

The advantages of decentralized procurement include speed and responsiveness, understanding unique operational requirements, new product development support, and ownership of decisions affecting purchases.