Compared with decentralized procurement, centralized procurement can achieve scale effect. It will undoubtedly improve the bargaining power. At the same time, it can control the ordering rhythm, reduce the number of transactions and save transaction costs, so as to reduce the procurement cost and directly increase the profits of the enterprise.

It can improve procurement efficiency. Centralized procurement can reduce the repeated setting of procurement management departments of enterprises at all levels, reduce the selection risk and time cost of decentralized procurement, optimize the ability of resource allocation, make enterprises better coordinate inventory, material transportation and distribution, and realize the scientization of procurement decision.

Can better control the procurement quality. Centralized procurement helps to control the quantity and quality of suppliers. Batch procurement of the same or similar materials also makes it easier for suppliers to realize standardized production, improve the accuracy and timeliness of procurement and improve production efficiency.