Analysis of the advantages and disadvantages of centralized procurement and decentralized procurement in logistics management and its application conditions

The topic of "decentralized procurement" is not new to people, and our country has long practiced decentralized procurement, in which the goods, works and services needed by government departments are procured by their own units, which are completely in a free and decentralized state. This procurement model has its advantages of convenience and timeliness, but due to the lack of the necessary institutional constraints and supervision mechanisms, with the growing development of China's market economy, its shortcomings are also becoming more and more prominent, manifested in the arbitrariness of the procurement, without a certain degree of economies of scale, and is prone to breed corruption. How to break this unregulated procurement model, from the early 1990s, China has been in some developed regions to explore new ways of government procurement, after several years of practice and exploration, people gradually realize the benefits of centralized procurement, not only to save financial resources, and standardize the procurement market, enhance the national economy's macro-control efforts to curb the procurement of unethical in the field of purification of the social atmosphere. Compared with decentralized procurement, centralized procurement is more effective. Compared with decentralized procurement, the benefits of centralized procurement are obviously better than decentralized procurement, through centralized bidding to obtain economies of scale, reduce the number of purchases, reduce procurement costs, procurement agencies, formal, transparent, easy to supervise and unified allocation. There are some shortcomings, but, so that procurement workers are encouraged to finally have a legal weapon of their own, for the cause of China's government procurement into the legal system has laid the foundation for the track.

Article 7 of the Government Procurement Law clearly stipulates that: "the implementation of centralized government procurement and decentralized procurement combined". The author believes that the centralized purchasing here is included in the centralized purchasing directory at the same time to reach the limit of standard goods and services, must be centralized purchasing agencies to organize the procurement. The so-called decentralized procurement, including narrow and broad content, the narrow sense of decentralized procurement, is not included in the centralized procurement catalog, however, has reached the procurement limit standards (with special characteristics). Decentralized procurement in the broader sense includes not only the narrower sense, but also piecemeal purchases that do not meet the procurement thresholds. In short, whether centralized or decentralized procurement, the organization and implementation of tenders must be carried out within the framework of the principles of the Law on Public Procurement. In addition, we should also be aware of the introduction of the Government Procurement Law means that the decentralized procurement in a certain degree of restriction and regulation. In my opinion, the following units at the provincial level, especially in economically underdeveloped areas should not promote decentralized procurement, centralized purchasing efforts should be increased, and gradually abolish decentralized purchasing, because the amount of decentralized purchasing in these areas does not form a large scale, coupled with the departmental purchasing agencies are not sound, it is easy to get out of the legal supervision and control of the track, giving rise to new corruption.

At present, China's government procurement implementation of centralized procurement and decentralized procurement mode. The centralized purchasing agency is responsible for the centralized purchasing directory of government procurement projects, departmental purchasing agency is responsible for not included in the centralized purchasing directory of government procurement projects that decentralized purchasing projects. How to deal with the relationship between the two, the author believes that the two are dialectical unity, complementary and mutually reinforcing relationship. First of all, whether centralized or decentralized procurement, all belong to the government procurement, the two procurement agencies do not distinguish between the primary and secondary, all have to comply with the laws and regulations of government procurement. Secondly, centralized purchasing agencies and departmental purchasing agencies are not hierarchical, but have different business priorities. Thirdly, centralized purchasing agencies and departmental purchasing agencies do not work separately in the implementation of government procurement activities, but have a coordinating relationship. They can share information on suppliers, expert pools and the like, and can "coordinate their efforts" on procurement projects. Fourth, the combination of centralized and decentralized procurement, it should be emphasized that it requires the Government not only to have a moderate centralized procurement, to strengthen the supervision of large expenditure projects, reflecting the mandatory nature of government procurement and the principle of efficiency, but also decentralized procurement to reflect the unit's autonomy and specificity. If the procurement limit standard is set too low, all purchases will be included in the scope of government procurement, or the procurement limit standard is set too high, so that the scope of government procurement is too narrow, and the limited number of units of procurement behavior is out of the supervision and control of the law, are contrary to the spirit of the spirit of the Government Procurement Law. Therefore, should be from the local reality, scientific and reasonable to determine the limit standards of government procurement, centralized procurement and decentralized procurement organically combined.