Achieving World Class Purchasing Through Solving the Centralized vs. Decentralized Organizational Dilemma
Dr. Peter E. O’Reilly, C.P.M.
Dr. Peter E. O’Reilly, C.P.M., Chairperson- ISM Services Group, New York, NY
87th Annual International Conference Proceedings - 2002 - San Francisco, CA
Adding to the perpetual issue of how to operate an effective strategic sourcing function when there are both centralized and decentralized staffing elements, is the ever increasing concern brought on by today’s numerous mergers and acquisitions. How to organize a procurement function is no longer solely a situation comprised of organizational silos within firms, but it is also the pressure to “fit in” additional purchasing units from newly incorporated entities. Instead of asking and answering questions related to who stays and who goes, the management of strategic sourcing organizations should be responding to what makes the best business sense to the corporation and the internal customers in terms of purchasing organizational format. This presentation will address strategic issues related to these concerns and offer some action plans to better position purchasing organizations to overcome these challenges and seize strategic opportunities.