Sam is looking to bring on a new vendor to help with his project. He’s reached out to the procurement manager for help, but the procurement manager doesn’t seem interested in contracting with a vendor he doesn’t know. Instead, he tells Sam he’s going to send him a list of vendors the company has approved. What type of contracting relationship does the . procurement manager best represent?
Explanation
Answer: a - A centralized procurement office often works with vendors that have pre-existing relationships with the company and follows steadfastly to company rules and procedures.
Decentralized procurement offices will often be more flexible in trying to meet your needs, be more loyal to your projects, and be willing to work with new vendors, but will also demonstrate less overall expertise in contracts.
Standardized is not a reference to procurement offices at all, but instead refers to procedures.
Key Take Away: It’s important to identify how your procurement office is organized so that you can learn to deal with them in the most effective way possible. Some may seem like a hassle to deal with, but they can help you manage risk and cost with contracts and existing vendor relationships.
