14 Logistics Procurement Strategy Examples

We all know of companies such as Nestle and PepsiCo and the goods they produce. But have you ever wondered where they get their resources from? After all, without raw materials, it’s impossible to manufacture products. This is where logistics and procurement strategy comes into play.

Sounds interesting? Keep reading!

🔝 Top 14 Logistics Procurement Strategy Examples

1. Colbertens Services Ltd.'s Procurement Expenditure
2. Johnson & Johnson's Procurement Risk Management
3. Service Procurement And Provision
4. Procurement Management in the Automotive Industry
5. E- Procurement and Buyer- Supplier Collaborative Relationships
6. Socially Responsible Procurement Concept
7. Developing Contracts in Procurement and Supply
8. Project Procurement Management
9. The Project Management Body of Knowledge: Project Procurement Management
10. Supply Chain and Procurement Management
11. Developing Contracts in Procurement and Supply: Terms and Conditions
12. Procurement and Supply Report
13. Contract Closeout: SpaceX Case and Memo to Procurement Officer
14. Amazon.com: Transportation and Warehousing Strategy

🚚 Logistics Procurement Strategy Definition

A logistics procurement strategy is a way in which a company uses the supply chain at the lowest cost possible. It includes the ability to source raw materials, store the goods, and manage the inventory. Both procurement and logistics play strategic roles in the business.

What Is Logistics and Procurement Management?

Logistics and procurement management is related to the supply chain. It’s concerned with managing the raw materials necessary for manufacturing goods. It includes handling negotiations with third-party suppliers and hiring drivers and other professionals.

What Is the Role of Procurement in Logistics?

Logistics always go hand in hand with procurement. They both define a company’s supply chain and need to work together as seamlessly as possible. The procurement of the necessary supplies and the use of the proper logistics enable the business to grow and make a profit.

🆚 Procurement and Logistics: Difference

Procurement	Logistics
Procurement is an internal business process related to sourcing goods and services. It’s one of the most critical strategic functions of a business. Sourcing the right goods and services that will meet the brand and demand is part of procurement.	Logistics is an external business process. It is part of the business strategy that deals with transporting its goods and services, ensuring end-to-end delivery of services, and determining how the products reach the customer.

Aside from this, the main difference between procurement and logistics is that procurement can also buy logistics services. In contrast, logistics refers to how the sourced raw materials and end product reach the business and the end consumer.

🔥 Best Logistics Procurement Strategy Examples

Many companies have used successful logistics procurement strategies. There are five examples that you can look into for your business essay.

1. Cisco Systems Logistics Procurement Strategy
   Cisco Systems is one of the top companies in the global supply chain that has developed a dynamic supply chain system.
2. Colgate-Palmolive Logistics Procurement Strategy
   You can find the products they offer in any country of the world. Colgate-Palmolive care about their suppliers, which in turn helps them manage logistics procurement.
3. Nestle Logistics Procurement Strategy
   Nestle is a household name all around the world. Using their strict logistics protocol, they can source raw products, create end products in one country, and send them to another.
4. PepsiCo Logistics Procurement Strategy
   Who does not know about PepsiCo and its wide selection of drinks? They use excellent sustainable sourcing and logistics procurement strategies. 
5. Alibaba Logistics Procurement Strategy
   This company took the world by storm through its dropshipping strategies and many logistics strategies that work.

Other companies with great logistics procurement strategies include:

• Coca-Cola 
• Home Depot 
• McDonald’s