The procurement function in any organization may be placed at several different levels: in each project, at the business unit level, or at the corporate level.
address/answer the following:
- For each of these levels in an organization, explain one potential advantage and disadvantage a project manager working with procurement would experience.
- Why would a project manager prefer a procurement office placed at the highest level?
- Do any of the levels have greater or lesser potential for causing delays?
- If an organization were to have procurement offices at all levels, what conflicts might arise? How is this similar to conflicting priorities of procurement units in a single organization vs. a buying consortium?
- How would this differ between a multinational organization and one located in just one country?
- Which level would provide the greatest purchasing power? The least? Why?