Bidhaa Ltd. operates a number of branches which have their own purchasing departments. The purchasing director is proposing a system where all purchases are carried out...

      

Bidhaa Ltd. operates a number of branches which have their own purchasing departments.
The purchasing director is proposing a system where all purchases are carried out by a
centralized department.

Required:
Explain four
benefits that could be realized from a centralized purchasing system.

  

Answers


Martin
Benefits of centralized purchasing system

i) Large quantity discounts will be available

ii) Uniform stocks can be purchased for all departments.

iii) Employees with specialized skills in purchasing will be concentrated in one department.

iv) There is less risks of duplication of activities

v) Purchasing control is possible

vi) Costs savings in operations since there is only one purchasing department.

vii) There is a possibility of continued supply during difficult times.
marto answered the question on February 26, 2019 at 08:34


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