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What do you understand by Centralize Purchase?
Centralize purchase directly indicates that purchasing of materials from only one department. Who manages this department? None other that the purchase manger is there to handle this centralize department. Non-uniform procurement, overlapping and duplication must be avoided. Materials of Centralized purchasing must be followed by a company. Store keeping in an efficient way is completely necessary.
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What are the advantages of the Centralize Purchase?
The advantages of Centralized Purchasing are as follows-
- Purchaser can easily purchase materials in a bulk Quantity, which is completely cost effective.
- No reckless purchases is there.
- Duplication is completely avoided by Centralized purchases.
- This maintains the purchasing policy in a uniform way.
- Perfect for inventory as it minimizes the cost of that.
- No huge transportation cost is required as purchasers take bulk quantity.
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Why Centralized Purchasing is important?
This is very important because of the following factors- proper answer
- Degrees Of Centralization.
- Strategic Efficiency.
- Procedural Efficiency.
- Control and management.
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