Types of office Stationery Purchases | Centralized | Decentralized | Advantages & Disadvantages

Types of Purchases of Office Stationery

There may be centralized or decentralized purchase of office stationery. Namely,

  1. Centralized Purchasing
  2. Decentralized Purchasing.

What is Centralized Purchasing?

Centralized purchase refers to the purchase of office stationery by the purchase department of the large business organization. The purchase department has to decide the purchase procedure, items of stationery, quantity, quality, placing of an order, receiving of stationery, verification of receiving stationery, storage, stock verification and distribution of stationery to all the departments and branches on need basis.

Advantages of Centralized Purchasing

1. There is an economy in large scale buying; many stationery items are purchase at lowest price by availing of discounts.

2. The standard purchase procedure is followed. Hence, there is no lack of stationery.

3. The purchasing officer has special qualification and specialist in negotiation.

4. Storage facilities can be well utilized.

5. There is a proper distribution of all the stationery items.

6. The centralized purchase facilitates better budgeting for stationery items.

7. There is a possibility of exercising best control on issue of stationery items.

Disadvantages of Centralized Purchase

1. Organizing and maintaining the central purchase department is expensive.

2. There is no availability of specialized staff for running purchase department.

3. The requirements of one department are differ from another. Therefore, it is very difficult to procure stationery items on need basis.

4. The distribution cost of stationery may become a disturbing factor to small business organization.

What is Decentralized Purchasing?

The disadvantages of centralized purchasing can be overcome in decentralized purchasing. Decentralized purchasing refers to the purchase of stationery by the each department according to its requirements.

Advantages of Decentralized Purchasing

The advantages of decentralized purchasing are presented below.

1. Stationery items are purchased according to the requirements of each department immediately.

2. Purchases are made in right quantity and design.

3. There is no unnecessary locking up of finance since the purchases is made in small value.

4. Purchasing procedure may be changed according to the nature of stationery and supplier.

Disadvantages of Decentralized Purchasing

The disadvantages of decentralized purchasing are listed below.

1. Economy in purchasing cannot be availed by the business office.

2. Cost of purchase of all departments in total is more.

3. Standard and quality purchase of stationery is not possible.

The business organization can follow any one of the two methods or the combination of the two methods depending upon the situation prevailing.

Leave a Reply

Recent Posts

Related pages

sinking fund method of depreciation formulawhat are the advantages and disadvantages of e commerceadvantages and disadvantages of quality circlesadvantages and disadvantages of a planned economybearer debentures definitionadvantages of informal educationdefinition of caveat emptorpurpose of business process reengineeringskimmed pricingthe disadvantages of e commercevalid contract legal definitionmanagement accounting marginal costingdumping economics definitionprobability and nonprobability sampling methods in researchinductive & deductive methodaccounting for petty cashdisadvantages of mechanizationopenoffice advantages and disadvantagesdisadvantages of employee empowermentdisadvantage of sales promotionadvantages for a franchisorwhat is ultra vires doctrineprivity of contract indiacalculate gearing ratio from balance sheetcaveat emptor buyer bewareauditors negligenceadvantages and disadvantages of cluster random samplingdefine scalar principledefinition of urbanizedconsignment sales accounting entriestaylorism and scientific managementcorporate veil definitionlifting or piercing the corporate veilwhat is profitability ratioretained profit advantages and disadvantagesexchange rate quotationtypes of debenturesimportance of hire purchasecolgate brand extensionbudgetary control definition wikipediafiling in alphabetical orderdifference between hire purchase and installmentmarketing middlemenadvantages of decentralized organizationicici bank crmwhat does drawer mean on a chequea sole trader definitiondormant partneraverage age of inventory formularedeemable preferred sharesdefine inflation accountingcentralized vs decentralized organizationcontingent liabilities on balance sheetrights and duties of baileemultistage sampling technique pdfsundry creditors definitionbailor baileelimitations of fdielasticities of demandadvantages of variable costingdisadvantages of middlemenwhat is multidomestic strategyadvantages and disadvantages of autocratic managementhow to calculate employee turnovermerits and demerits of sampling methodsquick acid ratio formulameaning of marchantdefine facility layoutwhat is the definition of hire purchaseaudit tickstandardisation marketingquick assets are defined asautocratic leadership meaninglimitations of quota sampling