Centralized Purchasing Definition
A centralized purchasing department is a unit within a company that is responsible for the procurement of all materials, products, and services required by the organization. The centralized purchasing department typically reports to the chief financial officer (CFO) and is charged with ensuring that the company pays the lowest possible price for all purchases while still obtaining high-quality goods and services.
The centralized purchasing department is responsible for negotiating contracts with vendors, issuing purchase orders, and maintaining records of all purchases made by the company. The department also works closely with other departments within the company to ensure that all purchase requirements are met in a timely and efficient manner. In some organizations, the centralized purchasing department may also be responsible for managing inventory levels and ensuring that adequate supplies are on hand at all times.
