Centralized/Decentralized Purchasing

[Former Member]

Hi all,

What is Diff between centralized and de-centralized purchasing in SRM???How is it defined at the Org structure level??

[Former Member]

HI

Centralized Purchasing:

Where the purchasing activity is carried out by a central purchasing organization for all of your subsidiaries. In the context of SRM, centralized purchasing can be as below that each of your individual org captures the requirement in purchase requisition and sends it to SRM system (which is handled by centralized purchasing orgaization) through Plan driven procurement or CPPR scenario. Once the requirement is sent to SRM, the central purchasing org either creates PO or contract in the SRM system.

Decentralized purchasing:

Here the purchasing happens locally in each org. The centrally negotiated contract is distributed to all the backend systems. Now, the local purchasing org avails the distributed contract in the backend system to meet his requirement.

Thanks and regards,

Ranjan

[Former Member]

Exeprts ...any suggestions?/