What is devolved procurement? Meaning and Importance
What is Devolved Procurement?
Devolved procurement is a new type of approach which focuses on the division of business operations to increase efficiency and flexibility. In this case, the procurement function decentralizes its operations by distributing them among departments and stakeholders.
As a result, different departments can purchase without relying on the central procurement authority.
Under a centralized procurement system, the entire purchase happens through a central figure/department.
Alternatively, the supplies are purchased under the devolved procuring system to meet immediate and long-term demands independent of a central authority.
Furthermore, stakeholders can use their domain expertise to handle suppliers within specific categories.
Given below is a list of benefits offered by the devolved procurement approach:
Order processing becomes fast and easy. Departments don't have to depend on a third party for decision-making. It leads to immediate demand fulfilling for new supplies.
Enables greater flexibility, efficiency, and collaboration. Different departments can work cohesively.
Helps develop a strong professional relationship with local vendors and suppliers.
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