What is Decentralized Procurement?

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.