How to implement centralized procurement

Centralized procurement, refers to the government procurement will be centralized procurement catalog of goods, works, services, centralized procurement, including centralized purchasing agency procurement and departmental centralized procurement, the catalog belongs to the general public procurement projects, should be entrusted to the centralized purchasing agency agency procurement, belonging to the department, the system has special requirements of the project, should be implemented in centralized departmental procurement. As opposed to centralized procurement, known as decentralized procurement.

How to implement centralized purchasing: the operation flow is as follows

Centralized purchasing advantages and disadvantages

The advantages of centralized purchasing are:

(1) Centralized purchasing can make the number of increased, improve the negotiation power of the suppliers, it is easier to get the price discounts and good service.

(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, sharing, and also save inspection work.

(5) The quantity of supply and demand can be planned in a coordinated manner, avoiding the production of excessive inventory by each department, and the surplus materials of each department can be transferred to each other.

The disadvantages of centralized purchasing include:

(1) The purchasing process is too long, which delays the timeliness; it is difficult to adapt to sporadic, regional and emergency purchasing situations.

(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, confirmation of specifications, material transfer, etc. is time-consuming and laborious. The above is a manufacturing company's centralized purchasing methods, in fact, centralized purchasing in the retail chain is more widely used, it is often used in the Department of Purchasing and Purchasing Committee to carry out the way.