Jessica Jetten
29-10-2017
In this blog post I will look into the question “Are the procurement strategies different
on different industries?” Before doing this, the concept procurement strategy should be explained. Procurement is buying all the materials, supplies, services etc. that a company needs to successfully operate. So, a procurement strategy is the strategy to cost-effectly purchasing all needed supplies while considering the time planning, funding, budget, risks etc. The company should also consider the choice between producing own materials or outsourcing this task and when they outsource, purchasing all their materials at 1 supplier or at different suppliers.
Looking at different procurement strategies, I found an article with the 6 core strategies:
- Supplier optimization
Choosing a mix of suppliers that offer the best quality products for the lowest prices. This is by far the most common strategy used by companies.
- Total quality methods
Choosing suppliers that offer an ever-increasing quality for their products.
- Risk management
Choosing suppliers that offer the lowest risk concerning their supply chain
- Global sourcing
Looking at the world as one large market and use many suppliers regardless of their country of origin
- Vendor development
Focusing on the relationship with the supplier or suppliers and even help them optimizing their supply chain in order to offer your company the best service
- Green purchasing
This strategy is all about using materials and products that have the least negative effect on the environment
So, there are a lot of different strategies concerning procurement and every company needs a different strategy to fulfill their goals. If you think of the difference between e-commerce and normal business, high quality business and low quality business, services and goods, I it is quite obvious that different industries are in need of different procurement strategies.
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