Abstract
In this chapter I will cover purchasing and procurement policy, definition and structure, centralisation vs. decentralisation, consortia and associated issues, possible departmental structures, and benchmarking. In addition to the various strategies described in the previous chapter, there are several policy issues that can influence the operations of the purchasing department. A typical exemplar of a procurement business strategy can be found at the end of this chapter. The exemplar will place this chapter in context. Policies regarding reciprocal trade, intracompany, and purchasing ethics should be established as part of the plan for purchasing management. Allied to selecting the policies, the structure of the purchasing function, centralise or decentralise activity and interface with materials management, sourcing policy are all relevant to effective purchasing and supply chain management.