Organizational fit of procurement function

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Week 7 Hand-in Assignment

The procurement function may be placed at several different levels in an organisation: in each project, at the business unit level, or at the corporate level.

Discuss the organisational fit of the procurement function within three different cases:

  • A project based organisation with project-based procurement
  • A large multinational organisation with centralised corporate procurement
  • A large multinational organisation with centralised business unit procurement

Your discussion should demonstrate your understanding of how project and procurement management would collaborate in each case and should include the advantages, disadvantages, benefits, and challenges of each organisational design.