By Paras Sood
For many organisations, procurement functions undergo numerous transitions over their lifespan. Purchasing may originate reactively or tactically through stock purchasing rooms and localised buying, but as the procurement organisation matures the driver swiftly becomes 'strategic sourcing' from the centre, identifying the best innovations from the supply-base, leveraging economies of scale.
But then comes the reversal... the impact of centralised sourcing is only answering certain supply management needs, but not responding to local demand and specialist requirements. Inevitably, control goes back out to the regions to prevent supply chain ostracism and keep the peace amongst end customers.