An alternative to centralisation or decentralisation in organising functions such as procurement is the network model. It is a hybrid model, in that staff work both at the centre and in departments or divisions. It is sometimes called a ‘centre-led’ model, because the central team determines strategy and sets policies and standards, and execution of the category strategies is done by procurement staff located at local level. Advocates claim that this approach harnesses the advantages of central coordination and control without the disadvantages of reduced sensitivity to local needs and priorities. See also Centralisation and Decentralisation.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
