Question

Welcome to the final week. For this week's discussion, please apply your knowledge from chapter 14 to answering the following questions. Acknowledging the push towards centralized purchasing and that BCI is a global firm, what purchasing related issues should Marc Biron consider in creating his supply plan for BCI's marketing group? For a few items on your list, provide some additional depth and detail in your posting.

Answer 1

Answer:please refer to the explanation section

Explanation:

Centralized Purchasing is when one head quarters department controls and handles all the purchasing that is undertaken by the business. Big companies often adopt this management strategy in controlling and managing purchasing activities undertaken by the business. while centralized purchasing strategy may have certain advantages, there are disadvantages associated wiht centralized purchasing.

• Possible Delay in processing purchase requisitions from business branches in other areas for ad hoc goods.

When Purchases are centrally controlled and managed, Purchasing department will be dealing with many purchasing requisitions from different branches which may cause a delay in the processing of  purchase requisitions for goods that are needed immediately which may cause frustration for businesses operating in other areas.

• When the central purchasing department is located far away form when the business is operating the business may loose local discount

When the purchasing department is located far away from where the business is operating,  for instance in another city or even in another country the business will not be able to take advantage of local discounts from local suppliers.