The document discusses different approaches to purchasing and organizational structures for purchasing functions. It describes centralized versus decentralized purchasing, with centralized allowing for economies of scale and strategic focus while decentralized allows for local responsiveness. It also outlines different organizational structures for purchasing like functional, divisional, cross-functional teams, and centralized coordinator models. The document provides examples of items that may be centrally or decentrally purchased and asks to recommend the approach for a manufacturing company's purchasing needs.

1. Purchasing and organizational structure

12. Exhibit 12.2 A Functional Structure 12-

13. As a function

15. Divisional structure

16. Purchasing department

17. Cross-functional structure (Matrix structure)