Systems contracting is a purchasing management technique that seeks overall reduction in the cost of an item from the time a need is recognized to the time that need is fulfilled.
Recognizing that purchase price is but one element of the total cost picture, the scope of systems contracting goes far beyond the purchase price for any given item.
To extend this commitment to increasing productivity in all departments within a given facility, many companies have adopted the concept of profit centers.
As a profit center, each department makes a direct contribution to the overall success of the total organization.