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Home > QFINANCE Dictionary > Definition of centralized purchasing

Definition of

centralized purchasing

Operations & Production

concentration of purchasing in single department the control by a central department of all the purchasing undertaken within an organization. In a large organization centralized purchasing is often located in the headquarters. Centralization has the advantages of reducing duplication of effort, pooling volume purchases for discounts, enabling more effective inventory control, consolidating transport loads to achieve lower costs, increasing skills development in purchasing personnel, and enhancing relationships with suppliers.

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Definitions of ’centralized purchasing’ and meaning of ’centralized purchasing’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’centralized purchasing’ and other financial terms with our online QFINANCE Financial Dictionary.

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