Procurement Playbook

The Benefits of a Centralized Procurement Process: Why Modern Labs are Making the Switch

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Walk into any busy lab and you’ll see the usual scramble: urgent deadlines, dwindling lab supplies, and sticky notes reminding someone to reorder. Labs somehow make it work, but ordering often means juggling emails, spreadsheets, and last-minute calls.

That’s why more labs are turning to a centralized procurement process. Instead of everyone doing their own thing, all purchasing flows through one coordinated system. This approach helps research labs, biotech companies, and pharma organizations control spending, reduce errors, and make smarter decisions with less effort.

So, what exactly is a centralized procurement process, and why are more labs making the switch?

What is a centralized procurement process?

At its core, a centralized procurement process consolidates purchasing activities under one team or system. Instead of each department or individual researcher managing their own suppliers and orders, a single procurement function handles supplier relationships, negotiates pricing, oversees contracts, and standardizes purchasing protocols.

For labs, this usually means:

  • All orders flow through a central procurement platform
  • Supplier lists and contracts are managed in one place
  • Purchase approvals, GL coding, and compliance checks are standardized
  • Data from all purchases is tracked and easily analyzed

With the right digital procurement solution, lab supply and scientific equipment orders ranging from simple to complex become easier to manage and less prone to error.

Want to see how centralized procurement works in practice? Check out how Sanofi optimized their lab supply procurement with ZAGENO.

The real benefits of centralized procurement in labs

Streamlining procurement is more than just adding new technology, it’s also about turning a close eye to how your lab works every day. Here’s how leading life sciences labs are making real, measurable progress:

Cost savings everyone can see
Centralizing procurement brings spending under control. Labs gain visibility into where their money is going, making it easier to spot duplicate orders or negotiate better pricing with suppliers. Many organizations find that they can leverage their total spend for discounts, rebates, or improved payment terms, something that’s impossible when orders are scattered across departments. 

Learn more about managing spend effectively in our post on spend management for better R&D procurement practices.

Fewer mistakes, faster orders
Decentralized purchasing has the potential to create headaches: wrong items, missed discounts, and confusion over approvals. With a centralized procurement process, labs create standardized workflows that reduce manual steps and errors. Approvals move faster, and researchers spend less time tracking down order numbers or invoices. 

See more about improving efficiency in our exploration of how to streamline lab procurement and stop settling for skin-deep digitalization. 

Better compliance and risk management
Labs must meet strict regulatory requirements, especially around hazardous materials, traceability, and budget control. Centralizing procurement helps ensure that every purchase goes through the proper checks and balances. With everyone following the same playbook, documentation is consistent, and audit trails are complete. 

For more insights, read our guide on how procurement can balance compliance and efficiency

Stronger supplier relationships
When all purchasing is managed through one system, labs can develop deeper partnerships with suppliers. This can lead to priority support, access to specialized products, and better service-level agreements (SLAs). Suppliers know they are working with a well-organized team, which can unlock new opportunities for collaboration.

Read more about strategic lab supplier management that returns dividends

Clear data, smarter decisions
Perhaps the most underrated benefit is visibility. With all purchasing data in one place, labs can analyze trends, forecast future needs, and make data-driven decisions about budgets and sourcing strategies. This clarity helps finance, operations, and research teams work together more effectively.

What about the challenges?

Shifting to a centralized procurement process does require some adjustment. Researchers may worry about losing flexibility, and there’s a learning curve whenever a new system is adopted. 

The key to a smooth transition is choosing a procurement platform that’s built for labs—one that makes ordering simple, approval workflows transparent, and supports the unique needs of research environments.”

Combining lab supply procurement into one system should feel like a relief, not a restriction. Many labs find that with the right support, researchers quickly appreciate the time savings and reduced hassle.

Centralized vs. decentralized procurement: Finding the right fit

While centralization brings big advantages, some organizations benefit from a hybrid approach, especially if they have multiple locations or very different research groups. The best procurement process is the one that balances efficiency with flexibility, meeting your lab’s needs today and as you grow.

If you’re considering a move to centralized procurement, start by mapping out your current purchasing habits, talking to stakeholders, and looking for platforms that integrate with your lab’s workflow.

Ready to make the switch?

A centralized procurement process is more than just an operational upgrade, it’s a way to unlock savings, improve compliance, and empower your researchers to focus on discovery. As labs face tighter budgets and higher expectations, centralization offers a clear path to smoother operations and greater impact.

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Curious how a digital procurement solution can help your lab? Learn how ZAGENO brings centralized procurement to life for research organizations.

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