Procurement Strategy
What is a procurement strategy?
A procurement strategy is a plan that outlines the process of acquiring goods, services, or works from an external source.
It includes the objectives, scope, techniques, and timeline for sourcing activities. A successful procurement strategy can help an organization get the best value for their money, manage risks, and optimize the efficiency of its supply chain.
What should be included in my procurement strategy?
Your procurement strategy should include the following elements:
- Objectives: Clearly define what you want to achieve and the desired outcomes associated with the procurement process.
- Scope: Outline the scope of the procurement process, including any constraints or limitations.
- Techniques: Identify the sourcing techniques and methods that will be used for the procurement process.
- Timeline: Establish a timeline for the procurement process and any associated activities.
- Evaluation: Create criteria for evaluating and selecting vendors.
- Risk Management: Outline how risk will be managed throughout the procurement process.
- Communication: Establish how the information will be communicated between all stakeholders.
How will having a procurement strategy help my business?
Having a procurement strategy can help your business in many ways.
It can help you get the best value for your money, manage risks, and optimize the efficiency of your supply chain. It can also help you reduce costs, save time, and ensure that you are dealing with reliable vendors.
A well-crafted procurement strategy can help you make informed decisions and ensure the success of your purchasing activities.
How can I implement a procurement strategy?
- Research: Research the market and identify potential vendors.
- Identify Objectives: Identify the objectives of the procurement strategy and define the desired outcomes.
- Evaluate Vendors: Evaluate and select vendors based on their qualifications and pricing.
- Negotiate Terms: Negotiate the terms and conditions of the agreement.
- Implement Processes: Implement processes and procedures to ensure compliance with the strategy.
- Monitor Performance: Monitor the performance of vendors throughout the procurement process.
- Analyze Results: Analyze the results of the procurement process and identify areas for improvement.
What cost savings can I expect by implementing a procurement strategy?
The cost savings associated with implementing a procurement strategy can vary depending on the size and scope of your business.
Generally, businesses can expect to experience cost savings in the form of better pricing, reduced waste and improved efficiency.
A well-crafted procurement strategy can also help you reduce costs by streamlining the procurement process, negotiating better terms and conditions, and better managing risks.
Ultimately, the cost savings associated with implementing a procurement strategy can be significant, depending on the size and scope of your business.
Our services:
Procure Consult
With Procure Consult, we offer support with tender management and ad-hoc procurement consultancy. Our expert team will manage the end-to-end procurement process or offer assistance with any stage, as and when required.
Procure Health Check
With Procure Health Check, we’ll conduct a full review of the strategic and operational procurement processes within your organisation. We’ll identify the areas that need improvement and help you drive greater value from the procurement process.
Procure Analyse
The purpose of Procure Analyse is to conduct a high-level analysis of your spending activity. We’ll help you understand your current purchasing behaviour and highlight areas that can deliver greater value. Procure Analyse is also offered as part of Procure Health Check or as a standalone service.
Procure Outsourcing
With Procure Outsourcing, we deliver a range of procurement solutions on an outsourced basis, completely bespoke to you. This can range from delivering multiple tender projects as a package to delivering the full procurement function of your organisation.
Procure Post
Are you trying to find a supplier for your project? Post your tendering opportunity onto any of our 11 sector-specific portals for FREE with Procure Post!
Housed by our sister company, Hudson Discover, our portals host thousands of tendering opportunities for organisations of all sizes. For an additional cost, we’ll even help you identify your requirements and find the most suitable suppliers for your business.
Get in touch for a consultation and find out how we can help your business drive better value from procurement.
