A comprehensive procurement strategy defines how an organization strategically manages its procurement activities. In other words, it’s a directional roadmap. It’s a medium-to-long-term plan that includes both policy and processes that drive cost optimization, value creation and management of resources. The procurement strategy determines how goods and services are aquired at optimal cost and best available quality so that this process supports strategic objectives of your organization and enables competitive advantage.
Why do you need a procurement strategy?
The importance of a well-defined strategy cannot be overstated. However, in practice, long term plans may be well defined, but lack the ability to be translated into concrete behaviour and action that harnesses the benefits. The beautiful, yet theoretical vision may get lost in the noise of operative tasks. A well-thought-out procurement strategy should highlight new approaches and push change in thinking that delivers higher customer value, cost efficiencies and continuous process improvement.
This article was first published on sievo.com