The second issue is, what level of authority should the purchasing function have? Given the evolution of outsourcing, the purchasing function is expected to lose authority in the corporate hierarchy

Question

Quizplus · Accepted Answer

The statement is incorrect. With the increasing importance of procurement and supply chain management, the purchasing function is gaining more authority in the corporate hierarchy. Organizations are recognizing the strategic value of procurement and are elevating the role of Chief Procurement Officer (CPO) to the executive level. CPOs are responsible for driving cost savings, mitigating supply chain risks, and optimizing supplier relationships, which requires significant authority and influence within the organization.

The Second Issue Is, What Level of Authority Should the Purchasing