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000000072001 08-11-2011 02:53 PM

Organizational design criteria
I am looking for criteria that should be considered when trying to determine procurement resource location ie, centralized/low cost vs local close to the internal business partner/stakeholder/business unit/geography.

The function of the specific procurement organization is to provide sourcing support to the sales team on new sales opportunities. Is it best to centralize the organization or to place the organization close to the sales teams?

000000123080 08-24-2011 03:34 PM

Location, location, location
As stated by Martin Carrara in an article from June 1, 1995, NAPM INsights, p. 52, "The question to ask is not whether or not purchasing should be centralized, but rather which key activities should be managed centrally and which tasks should be eliminated, automated, or decentralized. The argument centers on whether individuals with purchasing responsibilities should belong to a central group or report directly to the various operational units."

Hope this helps you in finding what is right for your organziation. It's a good starting point, I believe.

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