🧭 Centralized vs Decentralized — Purch Org Decision Helper

Built for client advisory: answer 5 questions, see the right setup recommendation with reasoning. Then explore concrete differences across reporting, approval, books, master data.

The single most important insight: Both setups produce identical FI books (Balance Sheet, P&L) because finance always aggregates at Company Code level — Purch Org doesn't appear in FI reports. The differences are entirely at the MM / master-data / operational layer.

🎯 Decision wizard — recommend a setup

Answer based on your client's situation. Recommendation updates live.

1. How many Company Codes will be in scope?
2. Are plants in different countries / very different vendor bases?
3. Do plants share most strategic vendors (steel, IT, packaging, etc.)?
4. Do business units / owners need autonomous buying decisions?
5. Need fundamentally different release strategies / approval flows per plant?
Selections so far: none

📊 Side-by-side comparison — what actually changes

📋 Real client cases — what setup they use and why

CENTRALIZED
Tata Motors — single CC, 3 plants (Pune, Lucknow, Jamshedpur)

Single legal entity. All plants make commercial vehicles, share suppliers (steel, paint, engines). One central purchasing team. Volume leverage matters more than local autonomy.

DECENTRALIZED
Adani Group — multiple legal entities, diverse industries

Ports, power, mining, agri — different businesses, different vendors, different stakeholders. Each subsidiary has its own Purch Org. No vendor overlap to consolidate.

HYBRID
Unilever — global brands, local execution

Country-specific Purch Orgs handle local raw materials. A central Reference Purch Org carries global contracts (IT, chemicals, packaging) — local Purch Orgs reference it for shared pricing. Best of both worlds.

DECENTRALIZED
Sugar mill cooperative — 3 independent mills

Each mill is a separate legal entity (cooperative). Different farmer-suppliers. Each owns its own buying. Use Company (T880) entity for group consolidated reporting.

CENTRALIZED
Asian Paints — single CC, multiple plants

All plants make paints, share major raw material suppliers (titanium dioxide, solvents). One Purch Org for central buying; Purch Groups split internal buyer teams by category.

HYBRID
Manufacturing group with central PKLO for stores/spares + local POs for raw mat

Two Purch Orgs per plant: PKLO (handles IT/safety/MRO across all plants) + local PO (handles plant-specific raw materials). Hybrid by CATEGORY within one CC.

🧠 The decision rule (1 line)

"Share vendors → centralize. Need autonomy → decentralize. Cross-CC + global strategic vendors → hybrid with Reference Purch Org. FI books always look the same either way — choose based on operations, not finance."