centralizad purchasing (Accounting for materials nad stores )

centralized purchasing means the purchase of materials by a specialized with expert ataffs located at one place . Under this , the purchasing department purchases all the materials for various department and branchese of the organization . This purchasing department is handled nad controlled by a purchase manager or chief buyer .
                            Advanteges of centralized purchasing :
1. Bulk quantity of materials can be purchase at cheaper rate and at a good trade discount .
2. Quantity of materials can be maintained at it purchased by specialized and experience personnel .
3. better handling of store is possible .
4. Better co- ordination and co operation with other department .
5.recording and accounting of materials are easy and economical .
6. Effaective cotrol over materials can be possible .
7. facilitate planning and monitoring timely in delivery of goods .

                                Disadvantege of centralized purchasing :
It involves high initial cost to establish a purchasing department .
1. There may by delay ingetting materials from centralized store to verious department .
2. It is not suitable to those organizetion having branches at different geographycal location .
3. It creates a problem in case of emergency situation .
4. It take time to replace the defective materials .