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Organizations all lie on a spectrum, at one end of which are firms with complete centralization of purchasing, and at the other end are firms with complete decentralization. Most firms lie somewhere between the two extremes, and we have already mentioned the most common model that has certain decisions centralized (perhaps strategy design, selection of suppliers, purchasing of major capital equipment, training, co-ordination, communications, etc.) and bulk of purchasing devolved to local buyers. There are many variations on the type of activities that are either centralized or decentralized. In the last 12 years purchasing has noticed two radical changes in the majority of facilities. First change was the reverse of supplier – customer relationships where the role of purchasers changed from persuading and begging the suppliers to ever deliver, preferably with minimum delay (for fixed prices), to standard purchase activities where the purchaser can choose from many suppliers and negotiate prices with vendors to achieve the best conditions for his buyer. The second change was the establishing of a modern IT system that made purchasing activities more effective, more automatic and transparent to a considerable extent. It is good to realize whether all changes have led to improvement or whether these changes have caused a stop or a slowdown of the project purchasing – whether it is possible or even necessary to take into account global as well as local suppliers or to combine them. This Case Study demonstrates how a project - managed organization could look like, where it is necessary to take into account customer´s wishes and benefit.

STRATEGIC PURCHASING IN A PROJECT- BASED COMPANY – TO CENTRALIZE OR DECENTRALIZE