If purchases are very different across business units, an argument could be made for decentralization.

Question

Quizplus · Accepted Answer

If purchases vary widely among different business units, it may be more efficient to decentralize purchasing decisions to those units rather than have a centralized purchasing department make decisions that may not apply equally to all units. This can help ensure that each unit is able to purchase goods and services that are tailored to their specific needs, while also reducing the workload on the centralized purchasing department.

If Purchases Are Very Different Across Business Units, an Argument