top of page
Writer's pictureJordi Vandenhouwe

Crafting your strategic procurement plan

Updated: Mar 25

Crafting a strategic procurement plan is essential for mature businesses seeking efficient purchasing practices. Picture representatives from each department sitting together sharing insights on what materials are needed, what tools work best, and what areas need improvement. This collaboration not only addresses gaps but also refines the entire procurement process, saving precious time and resources along the way.


Now, let's dive into the key steps that will help you construct a strategic procurement plan.


1. Document & analyze your business’s current state

Uncover your business’s spending habits and trends through conducting via a range of analyses like a SWOT analysis, category positioning matrices, scope analyses. Each perspective helps paint a clearer picture of where your business stands and where it's headed. 

For instance, a SWOT analysis identifies internal strengths and weaknesses while also recognizing external opportunities and threats. This understanding informs strategic decisions, enabling procurement teams to capitalize on strengths and opportunities while mitigating weaknesses and threats.


2. Identify your tail spend

Identifying the tail spend – those elusive purchases that flutter under the radar. Tail spend encompasses smaller, less frequently occurring purchases that collectively account for a significant portion of procurement expenses. Think office supplies, business travel, marketing – the little things that add up but often escape notice. 


By leveraging advanced analytics tools and employing strategic sourcing frameworks, organizations can shine a light on these forgotten costs. For example, implementing automated spend analysis software can help reveal tail spend patterns and opportunities for consolidation and cost savings.


3. Crafting the vision: define objectives & policy

After assessing the current state and recognizing hidden opportunities, it is time to focus on defining your future objectives. Set clear goals, establish timelines, and chart your course forward. Dive into the depths of market analysis, establish Key Performance Indicators (KPIs), and lay the groundwork for your procurement policy. It's about creating a roadmap that guides every step forward.


For instance, objectives may include cost reduction targets, supplier diversification goals, or efficiency improvements. Establishing clear KPIs ensures accountability and provides benchmarks for measuring progress towards these objectives. Additionally, conducting thorough market analysis enables informed decision-making, identifying emerging trends, potential risks, and opportunities for innovation.


4. Create your procurement strategy

With your vision established, it's time to develop a cohesive strategy. Envision an effective procurement process, encompassing efficient sourcing, reliable suppliers, and streamlined workflows.


Organizations can adopt various procurement strategies, such as strategic sourcing, supplier relationship management, and category management, tailored to their unique objectives and challenges. By embracing digital transformation and leveraging advanced technologies like artificial intelligence, procurement teams can enhance agility, transparency, and collaboration across the supply chain.


In conclusion, strategic procurement demands thorough planning, collaboration, and the utilization of modern tools and platforms. Platforms like Valcori offer comprehensive solutions to streamline procurement processes and maximize efficiency. Embrace simplicity, leverage digital strategies, and let Valcori empower your procurement journey towards success.


Comentarios


bottom of page