Which of these is an advantage of centralized purchasing?

Hello Team,

Centralized purchasing refers to the purchase of materials by a single purchase department. This department is headed and managed by a purchasing manager. Under centralized purchasing, all purchases made by the purchase department to avoid duplication, overlapping and the non-uniform procurement. A company has to follow the centralized purchasing of materials for ensuring proper materials control as well as efficient store keeping. Under this system, the purchasing department purchases the required materials for all the departments and branches of the company.

Advantages Of Centralized Purchasing

- Bulk quantity of materials can be purchased at a low price with favorable purchasing terms.

- The service of an efficient , specialized and experienced purchase executive can be obtained.

- Better layout of stores is possible in centralized stores.

- Economy in recording and systematic accounting of materials.

- Transportation costs can be reduced because bulk quantity of materials purchased.

- Centralized purchasing avoids reckless purchases.

- Centralized purchasing discourages duplication of efforts.

- Centralized purchasing helps to maintain uniformity in purchasing policies.

- Centralized purchasing helps to minimize the investment on inventory.

Disadvantages Of Centralized Purchasing

- High initial investment has to be made in purchasing.

- Delay in receiving materials from the centralized store by other departments.

- Centralized purchasing is not suitable, if branches are located at different geographical locations.

- In case of an emergency, materials can not be purchased from local suppliers.

- Defective materials can not be replaced timely.

Regards,

Saiyid

Eventhough all the answers constitute advantages in purchasing, the specific answer for the question which in Centralized purchasing is d. Consolidating the material requirements across the entire organization allows the buyers to negotiate better prices

d. Consolidating the material requirements across the entire organization allows the buyers to negotiate better prices

d is the most relevant answer.

all option                    .

Mr. Wasi. This is very important in our Warehouse & Logistic / Procurement Because the program used is SAP this system show automatically the Centralized Purchasing system.  This make very important not to chite and any fraud in our records.The specific answer for the question which in Centralized purchasing is d. Consolidating the material requirements across the entire organization allows the buyers to negotiate better prices

thanks for invition ,,,,,,,,,,

my choice is option D 

I think it's all of them A, B, C and D. 

The specific needs of all end-users can be met_____________-Answer

Answer is option a)==========================