Decentralized procurement allows individual stakeholders to make purchases for their departments, unlike in centralized procurement operations, where all purchasing is conducted by a central procurement team. Decentralized procurement can work well — particularly when teams specialize in different product categories — because it places decision-making power into the hands of department buyers.
The choice of a centralized or decentralized procurement model depends on the business priorities. In some cases, a business may leverage both models and combine their best features.
Technology has enabled businesses to deploy a hybrid procurement model that helps create a balance by allowing stakeholders to exercise their authority while retaining vital aspects of centralized control. Learn more about GEP’s procurement software and procurement managed services.
GEP SMART is an AI-powered, cloud-native source-to-pay platform for direct and indirect procurement. GEP SMART offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities.
GEP NEXXE is a uniﬁed and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artiﬁcial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage.