Who purchases most of the products needed by the units in very large organizations?

• A. national buying groups
• B. individual departments
• C. franchisors
• D. local farmers

Answer: (A)

Centralized procurement through a national buying group lets a very large organization pool its purchasing across all units, gaining volume discounts, standardized product specs, and streamlined ordering. This approach reduces costs per unit and keeps products consistent from one location to another, which is crucial when managing many units. Buying decisions made by individual departments would fragment sourcing, raise costs, and create inconsistency. Franchisors influence supply in some networks but don’t automatically handle the bulk purchasing for every unit across the system. Local farmers supply specific items in limited categories rather than the broad range of products a large organization needs.