Procurement Organisation - 5 Reasons to Have a Centralised Organisation

  Organisation structures are a way of allocating goals, tasks and procedures to individuals and groups of individuals to achieve corporate objectives. One of the factors in deciding on the right structure is to think about whether or not common functions, such as procurement, should be centralised or de-centralised. Here are some of the reasons for having a centralised procurement structure.


1. Allows scarce resources to be acquired. For example, each business unit may have an occasional need for a particular procurement skill (such as utility buying) but not an on-going need. Centralising procurement enables them to acquire this skill and share it between all units.


2. Allows you to spot opportunities to consolidate spend. It can be the case that individual business units in a de-centralised organisation are buying similar items but in quantities that are too low to get the best price. A centralised organisation has the visibility of all spend to be able to spot this and go to market for the total requirements.


3. Experience can be better shared and so up-skill the team. Buyers who work in de-centralised organisations do not often get the opportunity to share experiences and ways of working with their colleagues in other business units https://www.sourcing-force.com/. Often this type of conversation is informal and happens through casual conversations around the coffee machine. This sharing of tips and techniques is more likely to happen in a centralised organisation where contact is frequent.


4. Reduces the likelihood of duplication of effort. If different business units are working on similar markets and developing similar ways of working this can add up to a significant duplication of effort and consequent reduction in effectiveness. This is more easily spotted and resolved if the procurement team is working centrally.


5. Reduces the likelihood of multiple procedures and processes. Particularly if these are developed on common applications such as spreadsheets, you can end up with multiple processes and multiple sources of data, all unknown to others in the organisation.


Overall the answer lies in how mature the organisation is in procurement terms. If, for example, there is a lot of off contract buying at present then a centralised organisation allows you to gain control. When the procurement processes and performance monitoring is mature you can think about de-centralisation.



Many companies have trouble succeeding in the world of government contracting for one simple reason: the inability to find the right opportunity. Finding the bid that best matches your product or service offering among literally hundreds of thousands of government opportunities can be a very daunting task. With a little help, including proper bid matching, any company has a shot at dominating the lucrative government bidding marketplace.


The Needle in the Haystack: Finding the Right Government Contract


Most government agencies issue their own bids and Request for Proposals (RFPs), and advertise them on one of tens of thousands of different agency sites. Unfortunately, there is not yet a centralized, online bidding marketplace for state and local procurement like there is for federal government agencies. Furthermore, many agencies still issue their bids by fax or newspaper, making procurement opportunities even more difficult for smaller businesses to discover. This is where proper bid matching comes into play.


Identifying the Right Government Bid Matching Service


When entering into contracts with state, local and federal government entities, the government is considered an "agent" of the people served by the agency or government. As a result of this public responsibility, many of the details of contracting are carefully defined by statute. In addition, rules and regulations pertaining to establishing specifications in the bidding process and the award/selection process are carefully controlled, which means that the process is largely open to public scrutiny and is very structured.


A quick search will reveal that there are many services that can match your company to potential government contracts by industry. While elementary matching of this type can be useful, it doesn't always shrink your prospect pool sufficiently to find a perfect match for your business and get an edge on your competition.


Some companies go beyond this basic matching and offer a summary of vital information, access to full bid and RFP documents, special agency notes, related links and data, and have the ability to monitor upcoming opportunities that have not yet become government RFPs (including pre-solicitations). A service that tracks bidding competition as well as winning bid information will give your company the greatest competitive advantage, bringing you that much closer to closing in on the right government bid.


The additional data available from a premium bid matching service will help you quickly decide how to treat each government RFP or bid. This results in usable business information, rather than simple, raw content that requires hours of work to sort through. Having highly-specific, tailored business intelligence about a bid or RFP greatly increases your chances of finding a perfectly-matched bid. A Request for Proposal or government bid, properly sourced, can often be such a good match to your business that you'd swear it was written with your company in mind.


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