Lack of coordination diminishes buying power and loses the knowledge-based benefits of the centralized system.

Question

Quizplus · Accepted Answer

Lack of coordination means that purchasing decisions are fragmented and decentralized, which reduces the ability to negotiate bulk discounts or centralize procurement practices. This diminishes the overall buying power of the organization and can result in missed opportunities for leveraging economies of scale. Additionally, coordination helps to ensure that the organization benefits from knowledge sharing and expertise within the centralized system, which can be lost when purchasing is decentralized.

Lack of Coordination Diminishes Buying Power and Loses the Knowledge-Based