The purchasing function is quickly becoming one of the most important contributions to profitability. The following are 3 approaches to the purchasing function:

a. A centralized approach to the purchasing function has the advantage of cost savings. But, there is less focus on business requirements.

b. A decentralized approach to the purchasing function has the advantage of business responsiveness. But, a disadvantage is a loss of consistent sourcing process.

c. A hybrid approach to the purchasing function has the advantage of business responsiveness. But, it is difficult to coordinate.

You are in charge of the purchasing function of a large car manufacturer. As such, you have been given the task of selecting your company's approach to the purchasing function.

1. Explain whether you would choose a centralized, decentralized or hybrid approach to the purchasing function. Give at least one reason to support your answer.