Central Purchasing

Central Purchasing refers to a centralized system where an organization consolidates its buying activities, such as goods and services, into one department. This approach allows for bulk purchasing, leading to cost savings through economies of scale, better negotiation power with suppliers, and streamlined processes. It ensures consistency in quality and pricing across the organization while reducing redundancy. Central Purchasing is commonly used in large organizations, government agencies, and educational institutions to improve efficiency and control over expenditures.