The procurement strategy as part of the stock management of an enterprise specifies medium-term the distribution of the procurement of goods and services on individual suppliers.

A central goal of a procurement strategy is the Sicherstellung of the supply of the enterprise with all necessary means. Opposite the associated costs and the economic interest of the enterprise stand to keep these costs as small as possible.

Concrete regulation ranges of the procurement strategy are:

Since it concerns a strategy, these decisions refer not to the concrete purchase of a certain quantity, but understand themselves rather as guideline for the procurement to refer a certain portion of the entire volume of purchase of a certain supplier or for example in a local market.

Description and demarcation

The efficient procurement of raw, auxiliary and fuels, construction units, finished goods and services contributes an important part to the safety device of the Unternehmensgewinns. Large enterprises and companies, for example in the automobile industry, were first, the enormous optimization potentials by shorter turn-around times and reduced stocks recognized, and began, to use them by exact planning of the delivery and manufacturing. The conversion of concepts like "“Just in Time"” (= manufacturing-synchronous delivery; see also: Order policy) or the vertical integration of ancillary industries are the most well-known consequences of these efforts.

Only in recent years also the middle class of the procurement than business success factor gave increasing attention. One recognized that possible profits are not only by optimizations in the delivery and in-house processing of goods. Already at the beginning of the procurement process unnecessary expenditures can be avoided by an accurate determination of the necessary quantities and qualities of goods. Further a careful selection of the suppliers is essential regarding the price, the reliability (both in fulfillment of a contract and date loyalty) and not least the transport costs.

Connected with it also the questions about self-manufacturing or external supply (Make or Buy) and purchase are closely indirect with the producer or directly over the trade. Apart from all these decisions also social and political considerations can play a role, which settles for instance in the preference of local offerers or from fair trade products.

Demarcation:

• The ascertainment of need and need regulation concern themselves with questions of the assortment selection and the quality procuring goods.
• The delivery and efficient in-plant transport fall into the range of logistics.
• The purposeful selection of individual suppliers is an operational (no strategic) activity, with which the supplier management concerns itself.
• The determination of explicit supplier-related order quantities for the individual case is the subject of the order policy.

However decisions over Make or Buy, purchase with the producer or over dealers, cooperating purchase prices, are transport costs and tariffs, costs of the storekeeping, supply security, preferences of local or fair acted goods, and the agreement with the enterprise example topics of the procurement strategy.

The meaning of the procurement is not limited therefore to the bare activity of the purchase. Providing a procurement strategy became the task of management.

Since the decisions have large influence on the costs of the enterprise over the procurement strategy, the question of cost represents a good starting point for providing the strategy. A special difficulty represent trade offs between individual cost factors like low purchase price and high transport costs, or costs of the storekeeping and costs of a possible Unterversorgung, which makes a careful weighing necessary.

Lately the view and optimization of the procurement process is increasingly stepped into the foreground in relation to the pure view of the purchase prices of the suppliers.

Articles in category "Procurement strategy"

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