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Centralized Procurement - Are there any Benefits?

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by Beroe Inc,
12 October 2022

What is Centralized Procurement?

Per definition, centralized procurement is a system where a single department handles the procurement of services and products for the entire organization. Under centralized procurement, a purchase manager orders the required products and services and ensures their timely delivery. 

While reading procured meaning in collaboration with centralized procurement, it is evident that this methodology works best for organizations that are in geographical proximity. A central procurement platform is integrated with the existing tech stack to ensure seamless procurements quickly with no duplication of efforts. 

Advantages of centralized procurement include lower costs, optimal stock levels, improved inter-departmental collaboration, higher productivity, and better supplier visibility.

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