What is Central Purchase Organisation?

Question

Accepted Answer

Central Purchase Organisation is a centralized department responsible for procurement activities across multiple business units or locations.

Central Purchase Organisation streamlines procurement processes
It ensures consistency in purchasing decisions and leverages economies of scale
It negotiates contracts and manages supplier relationships on behalf of multiple business units
Examples include a central purchasing department in a multinational company or a government agency responsible for procurement across various departments

Accepted Answer

Centralised purchase organization means it can support procurement activities for the plants, which related to multiple company codes. In this case, no need to assign any company code to the purchse organization and only assign all the plants which related to the different company codes.

Accepted Answer

a purchasing organisation is an organisation unit under company or plant which is responsible for procurement activity.

What is Central Purchase Organisation?

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