Organisation of procurement
Usually procurement is organised as a single department to get the benefits of centralised purchasing. These benefits include:
•consolidation of all orders for the same, and similar, materials to get quantity discounts
•co-ordinating associated activities to reduce costs of transport, stock holding and administration
•eliminating duplicated effort and haphazard practices
These benefits include (cont.):
•having a single point of contact for suppliers and giving them consistent information and service
•developing specialised skills and improving procurement operations
•allowing other people to concentrate on their own work without diverting into purchasing
•concentrating responsibility for procurement, making management control easier.