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17 January, 14:07

The potential advantages of centralized purchasing, as it is commonly done by large chain operations, include all of the following except: a) the presence of a strong negotiator when making purchases

b) cost and quality control

c) alienating local suppliers

d) the reduction of prices achieved by purchasing items in large quantitie

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Answers (1)
  1. 17 January, 14:13
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    The correct answer is c, alienating local suppliers

    Explanation:

    The presence of strong negotiator who is an expert in the field of sourcing is an advantage inherent in centralized purchasing, hence option A is not correct.

    Cost and quality control implies that sourcing in large quantity gives the buyer entity a strong bargaining power and it is able to procure at the lowest price possible. Whereas, the control relates to the goods been received at central location before being dispatched to the department requiring it, implies that all items can be properly checked and confirmed fit for purpose. As result option is wrong as well.

    The only odd option is C, as centralized purchasing is not aimed at alienating local suppliers since it is not global sourcing
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