Disadvantages: long process, untimely feedback, high inventory, and weak sense of responsibility of subordinates.
The advantages of centralized procurement are small workload, one-time procurement, long-term supply and service, and easy operation. The purchase efficiency is higher and the payment is more convenient.
First, the supplier is determined by one tender, and enterprises can directly sign multiple contracts with suppliers when they need a certain commodity, which simplifies the complicated and time-consuming tender procedures, improves work efficiency, saves a lot of procurement funds and is convenient for management;
Second, for suppliers, enterprises are big customers and they have strong interest. They changed their business philosophy and improved the quality and management level of newspapers by increasing investment, installing equipment or expanding their business scale.
Third, for merchants, although the price is depressed and the profit of commodity price is reduced during bidding, centralized procurement increases sales and its economic benefits will only increase. At the same time, it was identified as a designated unit through competition, which also improved its credibility and social influence.
Fourthly, for purchasing units, centralized purchasing units have fixed locations, low commodity prices, reliable quality and excellent service, which are not only convenient to purchase and safe to use, but also can save a lot of purchasing costs.
Disadvantages of fixed-point procurement
Centralized procurement has its limitations. First, the market competitiveness is poor, and it is not easy to get the attention of potential suppliers. Coupled with the market economy, suppliers survive the fittest and change frequently, and it is easy to lose the best suppliers. Second, it is not easy to control the fluctuation of prices, especially in market economic activities, prices are controlled by the law of value, and there are many changing factors, which are difficult to grasp; Third, suppliers are easily driven by interests. Once they won the bid, they stopped fighting for good price and good service and stayed at the level of bidding. Fourthly, due to the uncertainty of government procurement volume, when the procurement volume is lower than the expected bidding volume for a long time and has a certain extent, the enthusiasm of suppliers will be frustrated, thus affecting the quality of supply.