scm ppt centralized &decentralized ppt

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Centralized and Decentralized : 

Centralized and Decentralized This is usually a decision of top management, Chief Purchasing Officer, Director of Purchasing or possibly the Chief Executive Officer or owner. There is no magic formula to determine which way is the best. By- Jitendra jaipal

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Centralized purchasing means buying and managing purchases from one location for all locations within an organization.

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Decentralized is the opposite where each plant or office buys what it needs. This operation allows any employee to buy what he needs.

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Less control the home office has.  You have a duplication of effort in buying and Less buyer specialization.  You lose discounts on quantity buys.  You lose freight.  Support is lost from the supplier with.


PROCUREMENT PROCESS NEED ANALYSIS Identify needs User requirements

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PURCHASE TYPE Straight rebuy Modified rebuy New buy

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SELECT VENDOR Market analysis Potential vendors Prescreen Evaluate Choose

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Product or service delivery Post purchase evaluation

Vendor Selection Criteria : 

Vendor Selection Criteria Quality Design Product life Maintenance Dependability

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Reliability On time delivery Performance history Warranty

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Capability Production Technical Operation Labor

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Financial Price Financial stability

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Desirable quality Packaging Repair services Training aids

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