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Which of these is an advantage of centralized purchasing?

Select one:a. The specific needs of all end-users can be metb. The company can develop specialized local vendorsc. The quality of purchased components will be improvedd. Consolidating the material requirements across the entire organization allows the buyers to negotiate better prices

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Question ajoutée par Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG
Date de publication: 2016/04/29
Saiyid Maududi-Oracle Applications Consultant
par Saiyid Maududi-Oracle Applications Consultant , Entrerprise Architect , US Technomatrix, Inc

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

Sathish Prabhu.V
par Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves

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

MADAN MOHAN GAJULA
par MADAN MOHAN GAJULA , Material Coordinator , Sadara Chemical Company

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

Nadeem Asghar
par Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

d is the most relevant answer.

Ahmed Mohamed Ayesh Sarkhi
par Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

all option                    .

MUBARAK INAYTULLA KHAN
par MUBARAK INAYTULLA KHAN , Procurement Manager , UNIT7 CONTRACTING EST. RIYADH.

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

Eng Ahmed Elsharkawy
par Eng Ahmed Elsharkawy , Civil Engineering Project Manager , Altwijry office

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

my choice is option D 

Nuridin Islam Diab
par Nuridin Islam Diab , Training Manager , Bbusinesss LLE

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)==========================

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