Procurement Strategy Development
Introduction
To develop an effective procurement strategy or sourcing strategy, first it is necessary to sit down to assess the details that you have to work with. These details will include the business’ or project’s objectives, the available and existing resources and supplies, the budget and the timeline. Through the assessment of these elements, the team would be able to start planning for an effective procurement strategy that would be as custom-made as possible for the company; the key here is to make sure that every detail of the plan would contribute towards attaining the company’s established goals and objectives. A good question to ask would be, “Why are we purchasing this equipment?” The answer must be in accordance with the company’s goals. Another key item that would be planned for during this brainstorming stage would be the choices of either making or creating the materials (or doing procurement outsourcing) with the costs and sustainability being the major determining factor, and whether the existing company resources would be able to support the decision over a long period of time.
This effective and strategic training course covers the skills required to lead a procurement team to world class performance. It focuses on the common “gaps” in performance that must be filled in order for Purchasing Management to provide the continuous improvements needed for organizations to meet their strategic objectives.
Learning Objectives
• Describe the issues to be considered when developing a procurement strategy for a business unit
• Articulate the objectives of a procurement activity
for a business unit
• Conduct procurement spend analysis, supply risk
assessments, demand and supply market analysis
• Model and implement strategies for significant
procurement
• Implement strategies for routine, volume, critical
and strategic categories
• Align systems, capabilities, and administrative processes with strategic objectives
• Measure performance, outcomes and results