In practical situation, there are Some organizations adopt a hybrid system that combines both centralized and decentralized purchasing. It is decentralized at the corporate level and centralized at the business unit level. They use centralized purchasing for larger organization-wide contracts, but give individual business units autonomy to make small purchases for their departments or subsidiaries. This hybrid system helps the organisation to exploit the advantage of both centralized and decentralized system. For Example, Tata Motars has decentralised purchasing at the corporate level and utilizes it at itsJamshedpur and Pune units