In which procurement method does one office handle all purchasing for the organization?

Centralized purchasing is a method where a single office or department is responsible for managing all procurement activities for the entire organization. This approach can lead to more efficient purchasing processes as it consolidates buying power, ensuring better prices and contract terms through volume purchasing. It allows for streamlined decision-making and consistent procurement practices across various departments.

In contrast, group or cooperative purchasing involves multiple organizations joining together to leverage their collective buying power, while informal, open market purchasing is characterized by spontaneous transactions without centralized control. Just-In-Time purchasing focuses on acquiring goods only as they are needed in production, rather than maintaining large inventories, but does not imply central management of all purchases.

By centralizing purchasing, organizations can reduce redundancy, enhance negotiating power, and maintain consistency in the procurement process, which ultimately contributes to improved operational efficiency and cost-effectiveness.