Centralized purchasing List the advantages for implementing a centralized purchasing function. What are the disadvantages (if any)?
The advantages for creating a separate purchasing function include the following:
? Promotes efficiency and effectiveness.
? Eliminates potential favoritism that could take place if individual department heads were allowed to place orders.
? Reduces the opportunity for fraud by segregating the authorization to purchase from the custody and recording functions.
? Centralizes control in one function.
The possible disadvantages include:
? Potential kickbacks to agents from vendors and suppliers.
? Variations from traditional purchase orders.
You might also like to view...
Maturity value is equal to face value plus interest
a. True b. False Indicate whether the statement is true or false
The Internet has given today's companies a new set of capabilities. Among those capabilities is the ability to operate a new information channel. Describe how information can be used by the marketer in this new channel
What will be an ideal response?
If 95 percent of an organization’s guests do not fill out comment cards, the organization can assume that these guests had what reaction to the service?
a. happy b. unhappy c. indifferent d. can’t assume anything
Which factor is MOST likely to encourage group members to publicly go along with decisions they disagree with in private?
A. action anxiety B. negative fantasies C. fear of separation D. fear of risk