ARTICLE · 28 JULY 2025

Decentralized vs. Centralized Procurement In The Nordic Construction Industry

Alvarez & Marsal

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In the Nordic construction industry, procurement isn't just about acquiring concrete and components—it's a strategic lever that shapes margins...

DenmarkGovernment, Public Sector

Jan Diederichsen

In the Nordic construction industry, procurement isn't just about acquiring concrete and components—it's a strategic lever that shapes margins, timelines, quality, and ultimately, value creation. Especially in markets like Denmark, where the cost share of prefabricated materials is high, procurement decisions influence not only project outcomes but also the financial health of the entire organization. When up to roughly 50% of construction costs are tied to external suppliers (1), procurement becomes a critical driver of profitability, risk mitigation, and long-term competitiveness.

But behind every purchasing decision lies a deeper debate: Should procurement be centralized or decentralized?

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