Decentralised Procurement
Decentralised procurement is a function that operates without a central control point. Whilst not seen as best practice for larger complex organisation, this type of procurement model can become a competitive advantage for smaller more agile firms. A well defined series of third-party policies can help ensure purchases made across the Organization are optimum without the need to onerous and costly sign-off hierarchies.
Direct Procurement is the purchasing of goods and services that go directly into the goods or services of the organization that create revenue. These are the most important goods or services that the procurement function source and contract for the organization and have a direct influence on the success of the organizations commercial offering. Products and services like transistors, microchips, chemicals, and certain types of consulting are often direct purchases. Direct Procurement is the most important aspect of purchasing for most non-service businesses, this is because of the impact of supplier performance, quality and cost have directly on the product or service offered by the organization so therefore can have a material effect on it's financial performance good or bad.