The Procurement Glossary » Procurement Operating Model
Procurement Operating Model
Strategy & Operations
Definition
The design of how procurement is organised — its structure, roles, processes and governance.
Explanation
An operating model answers who does what: centralised, decentralised or centre-led; category versus transactional teams; shared services; and how decisions and authority flow. The right model balances control, expertise and responsiveness to the business.
Example
The new operating model centralises strategy and category management while leaving routine ordering with local sites.
Related terms
- Centralized Procurement — An operating model in which a single central team controls purchasing decisions across the organisation.
- Decentralized Procurement — An operating model in which individual business units or sites make their own purchasing decisions.
- Center-Led Procurement — A hybrid model where a central team sets strategy, contracts and standards while local units execute buying.
- Category Management — Managing related groups of spend as strategic business units, each with a tailored strategy and dedicated ownership.
Frequently Asked Questions
What is Procurement Operating Model?
The design of how procurement is organised — its structure, roles, processes and governance. An operating model answers who does what: centralised, decentralised or centre-led; category versus transactional teams; shared services; and how decisions and authority flow. The right model balances control, expertise and responsiveness to the business.
Can you give an example of Procurement Operating Model?
The new operating model centralises strategy and category management while leaving routine ordering with local sites.
Back to the procurement glossary | Procurement concepts | Contact us