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Discuss the different models for Purchasing Organization. Clarify your answer with drawing. Please no hand writing,...

Discuss the different models for Purchasing Organization. Clarify your answer with drawing.

Please no hand writing, please make sure you give a unique answer (not copied one)

This question is from Integrated Enterprise Systems course.

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Answer #1

Broadly speaking, there exist mainly 3 types of models for the purchasing organization. These are discussed below:-

Enterprise level:- This model is also termed as cross-company code model. This is the centralized model in which a single organization conducts all the purchasing related activities for the rest of the enterprise.

Company Level:- This model is also termed as cross plant model. In this type of purchasing model, a single purchasing organization takes care of the various responsibilities of different plants of any organization or company code.

Plan Level:- This model is also known as a plant-specific model. This can be seen as a decentralized model in which different plants are free to take their own purchasing related activities.

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