What are the advantages and disadvantages of centralized procurement system and decentralized procurement system?

Advantages: Large-scale procurement can reduce procurement and logistics costs, ensure profit maximization, improve project yield, enhance competitive advantage, and so on.

Disadvantages: low efficiency, long approval time, and low flexibility due to step-by-step signing.

Decentralized procurement system:

Advantages: high flexibility, quick response to market changes, etc.

Disadvantages: extensive management, rising procurement costs and logistics costs, shrinking profits, declining competitive advantage, etc.

It is also a trend for many enterprises to adopt centralized procurement, provided that all departments cooperate well, such as information department, finance department, logistics distribution department and operation department. Otherwise, if it is highly centralized and fails to respond quickly to the market, it is likely to lead to defeat before the war.