(1) Centralized purchasing can increase the quantity, improve the negotiation power to suppliers, and make it easier to obtain price discounts and good services.
(2) There is only one purchasing department, so it is easier to unify the purchasing policy and operation rules.
(3) Centralization of purchasing functions reduces waste of manpower; facilitates the cultivation and training of purchasing talents; and implements the specialization of division of labor, which reduces the cost and improves the efficiency of purchasing operations.
(4) The establishment of standardized specifications for the same materials in each department*** can simplify the types, share the same materials, and save the inspection work.
(5) The quantity of supply and demand can be planned in a coordinated manner, avoiding the production of excessive inventory in each department, and the surplus materials in each department can be transferred to each other.
Centralized purchasing has the following disadvantages:
(1) The purchasing process is too long, delaying the time; sporadic, regional and emergency purchasing situation is difficult to adapt.
(2) Centralized purchasing of non-*** homogeneous materials without the benefit of volume discounts.
(3) Separation of purchasing and utilization units results in poor purchasing performance. For example, confirming specifications and transferring materials are time-consuming.
The above introduction is the centralized purchasing method of manufacturing enterprises, in fact, centralized purchasing is more widely used in retail chain enterprises, it is often used in the Department of purchasing and purchasing committee way to carry out.