Centralize Direct Procurement for Best Results

Published On:
January 16, 2025
Authored By:
APQC
Members-Only Content:

Every organization needs to determine the best approach to organizational structure for its direct (as well as indirect) procurement. Whether or not to centralize should be based on strategic goals and the impact of that decision on key performance outcomes. APQC finds that for the majority of organizations participating in its Open Standards Benchmarking research in procurement, centralizing direct procurement results in lower costs, fewer full-time equivalent employees (FTEs) needed, and faster cycle times. 

From APQC’s Sourcing and Procurement: 2024 Blueprint for Success, this article details the importance of centralizing direct procurement for best results. These findings are supported by data from APQC’s Open Standards Benchmarking research in procurement and examples from successful organizations.