Lead Division Buying: This strategy involves one division taking the lead in purchasing for multiple divisions within an organization.
Supporting Factor: Consistent quantities of the same item used by several divisions support lead division buying.
Economies of Scale: Consistent demand allows for bulk purchasing, leveraging economies of scale, and achieving cost savings.
Standardization: Consistent usage across divisions promotes standardization, simplifying the procurement process and supplier management.
References
CIPS. (n.d.). Lead Division Buying and Centralized Procurement.
ISM. (n.d.). Strategies for Efficient Procurement Management.
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