Strategic Procurement - What is the need?
What is Strategic Procurement?
Strategic procurement is a the practice of using procurement as a strategic function to achieve the overarching business goals of the organization. Strategic procurement helps ensure that the supply of required goods and services is in sync with the overall business goals.
It is a data-driven process aiming to minimize risks in the supply chain to ensure the organization's long-term development. The techniques and tools used under strategic procurement ensure that the benefits on offer are much more than a reduction in the unit price. Activities undertaken under strategic procurement are identifying requirements, managing budgets, researching suppliers, issuing purchase orders, and clearing invoices.
As it is a pan-organizational activity, cooperation from all departments is necessary to successfully execute the tasks under strategic procurement.
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