Definition of strategic procurement
Strategic procurement is a term that is used in a variety of ways in the professional literature. We define strategic procurement as: activities that influence the development direction of the position of, and activities of, the procurement function within an organisation in the medium to long term and create the conditions for carrying out activities at other levels efficiently and effectively.
The elements of strategic procurement are:
- Translating the organisation’s strategy into a procurement policy that includes procurement objectives
- Describing the procurement strategy
- Determining the outlines of supplier management
- Entering into strategic alliances
- Investing in procurement systems
Performance procurement: Best Value Procurement
Best Value Procurement (BVP), or performance procurement, is an innovative procurement methodology based on procuring and achieving maximum value at the lowest price (best value). The best value and quality are obtained when the client gives maximum freedom to the contractor, who is the market expert. So it is about moving from ‘controlling and managing suppliers’ to ‘letting go and trusting’. Read more about BVP and view our BVP training programmes.
Sourcing Business Models
Sourcing Business Models (SBM) are the newest development in SRM to classify your supplier relationships and hands-on ways to structure your cooperation. Read more about Sourcing Business Models.