Procurement strategy

  • Published on: 17 March 2017
  • By: Frances Talman

An effective procurement strategy takes planning and a professional approach by a business to procure goods or services from a third party supplier that addresses many aspects in order to optimize spend and secure growth of your organisation.

Selecting potential suppliers, holding negotiations, fixing payment terms, signing contracts and terms, business vetting and the actual procurement of goods or services are the important elements of the procurement process.

In addition to these elements, the way in which the purchase is made is also important. I.e. whether it is direct, indirect, or outsourced procurement by contract or purchase order...

When developing a procurement strategy your company needs to assess its position within the market place in terms of: identity and goodwill, its business model, its strength both in production and delivery, budget, infrastructure, goals, management issues and other commitments.

It can be difficult to self-assess your market position objectively and develop a procurement strategy that leverages your position; devising a strategy needs expertise, know-how and a structured approach.

Many companies overlook or underestimate how important procurement policies and strategies are, and hence lack the expertise a professional team for this purpose. The size and number of staff within a procurement department is not a measure of expertise; staff are often too focused on transactional work and they do not have the time, professionalism, or the expertise that the process requires.

Whether you have an in-house team or not; your business can benefit from external professional help and expertise. The return on investment is clear and significant – getting the direction right up-front delivers efficiencies and ensures that you deliver on business objectives. Why not get the help from a professional consultancy that does this job day in day out!

We, at eXceeding, have a team of professionals who have the expertise in strategy development for all your procurement activities. It is our responsibility that your company gets the best service in the market, and through this we see that your ultimate business goals are achieved!