Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN: 9781285869681
Author: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher: Cengage Learning
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Chapter 5, Problem 2DQ
Summary Introduction

To discuss: The benefits of centralized purchasing authority and decentralized purchasing authority.

Introduction: Supply management is the process of managing the suppliers and raw materials or resources that are essential for the organization’s operations.

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an organisation can organise its purchasing function choosing among centralisation, decentralisation or a hybrid purchasing structure. you have been appointed as the purchasing official for eskom and your supply chain manager headquarted. in pretoria wants to re-organise the purchasing function of eskom in order to enhance efficiency. you are asked to advise on the option of purchasing function organisation you think is most suited for eskom and justify your option.
Think about the recent advancements in Corona Virus Vaccines. How do you think the demand and supply characteristics will be in the beginning of their application? Do you think the supply will match the demand quickly or easily? Why?
Discuss centralization versus decentralization in purchasing. What are the advantages of each?
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