Types of Purchases of Office Stationery
There may be centralized or decentralized purchase of office stationery. Namely,
- Centralized Purchasing
- Decentralized Purchasing.
What is Centralized Purchasing?
Centralized purchase refers to the purchase of office stationery by the purchase department of the large business organization. The purchase department has to decide the purchase procedure, items of stationery, quantity, quality, placing of an order, receiving of stationery, verification of receiving stationery, storage, stock verification and distribution of stationery to all the departments and branches on need basis.
Advantages of Centralized Purchasing
1. There is an economy in large scale buying; many stationery items are purchase at lowest price by availing of discounts.
2. The standard purchase procedure is followed. Hence, there is no lack of stationery.
3. The purchasing officer has special qualification and specialist in negotiation.
4. Storage facilities can be well utilized.
5. There is a proper distribution of all the stationery items.
6. The centralized purchase facilitates better budgeting for stationery items.
7. There is a possibility of exercising best control on issue of stationery items.
Disadvantages of Centralized Purchase
1. Organizing and maintaining the central purchase department is expensive.
2. There is no availability of specialized staff for running purchase department.
3. The requirements of one department are differ from another. Therefore, it is very difficult to procure stationery items on need basis.
4. The distribution cost of stationery may become a disturbing factor to small business organization.
What is Decentralized Purchasing?
The disadvantages of centralized purchasing can be overcome in decentralized purchasing. Decentralized purchasing refers to the purchase of stationery by the each department according to its requirements.
Advantages of Decentralized Purchasing
The advantages of decentralized purchasing are presented below.
1. Stationery items are purchased according to the requirements of each department immediately.
2. Purchases are made in right quantity and design.
3. There is no unnecessary locking up of finance since the purchases is made in small value.
4. Purchasing procedure may be changed according to the nature of stationery and supplier.
Disadvantages of Decentralized Purchasing
The disadvantages of decentralized purchasing are listed below.
1. Economy in purchasing cannot be availed by the business office.
2. Cost of purchase of all departments in total is more.
3. Standard and quality purchase of stationery is not possible.
The business organization can follow any one of the two methods or the combination of the two methods depending upon the situation prevailing.