What are the pros and cons of a centralized purchasing function?

The pros of centralized purchasing function are:

1. Cost-savings and standardization of the product or service purchased

2. Bulk buying strengthens the bargaining position of the buyer

3. It enables to develop and maintain good relations with the suppliers

The cons of centralized purchasing function are:

1. Lack of control or choice by the end-user

2. The centralized standard procedure may result in delays in receiving the materials

3. Staff may not be expert in buying varied types of items.