Critically analyze the advantages and disadvantages of centralized procurement of cross-border e-commerce enterprises

Advantages of economies of scale, disadvantages of lack of flexibility.

1, advantageous economies of scale: centralized procurement can make use of scale advantages to negotiate with suppliers, obtain more favorable procurement prices and reduce procurement costs. It is helpful for enterprises to control the quality of suppliers more effectively and improve the quality of products.

2. Disadvantages: lack of flexibility: centralized procurement causes enterprises to adjust slowly in the face of market changes and cannot quickly adapt to changes in consumer demand. As a result, the risk of enterprises in the supply chain increases, and the suppliers have problems, which has a great impact on the operation of enterprises.