Need to write a paper about procurement strategies? In this case, you should look at some of the key definitions. Besides, we’ve prepared valuable illustrative examples for you and discussed the difference between sourcing and procurement strategies. Keep reading, and you’ll find the answers to the most pressing questions.
💎 Top-5 Sourcing and Procurement Strategy Examples
- Strategic' Supply Chain Competition
- E-Procurement in Supply Management and Strategy
- General Motors’ Supply and Procurement Strategies
- Ford Motor Company's Competitive Advantage and Future
- Johnson & Johnson's Procurement Risk Management
💰 Procurement Sourcing Strategy: Meaning
In this section, we’ve answered all the topical questions that you might have about the procurement sourcing strategy.
What Is a Procurement Strategy?
Procurement is the structure a company or business will use when purchasing services or goods within set cost and quality guidelines. Thus, a successful procurement strategy outlines the company’s steps, procedures, and tools.
What Is a Sourcing Strategy in Procurement?
The sourcing strategy focuses more on issues that affect the company directly, such as:
- Sourcing a competitive supplier base.
- Supplying competitively priced raw materials or services.
- Bringing company objectives in line with the goals of stakeholders.
- Determining strategies for procurement, pricing, marketing, and distribution.
How Do You Develop a Procurement Strategy?
Developing a sourcing and procurement strategy needs to be accomplished with business goals in mind. Companies require commercial skills and strategic thinking to analyze their output and work out a cost-effective approach. Also, they should consider the people they work with, their challenges, and their used technologies.
📚 Sourcing and Procurement Strategies: What’s the Difference?
Even though procurement and sourcing are often synonyms, they have several important distinctions. If this is the topic of your essay, you should be aware of them. Below, you will find a table comparing strategic sourcing vs procurement.
|Takes place before procurement, ensuring that procurement gets the best prices possible.||Includes the act of purchasing the materials sourced.|
|Finds the best suppliers for the procurement team to negotiate with.||Negotiates better prices with the supplier.|
|Only a few elements of the more effective procurement strategy are considered.||It’s an end-to-end process from project management and planning to purchase.|
|Focuses firmly on where to get needed supplies.||Plans what supplies are needed.|
|Evaluates the supplier’s performance.||Creates a relationship with the supplier.|
|Does not participate in purchases.||Purchases, payments, record keeping, and shipping arrangements.|
💡 Procurement Strategy Examples
There are many types of procurement strategies. In this section, you will get to discover some procurement strategy examples.
- Building Supplier Relationships: A traditional method that creates relationships with suppliers who can provide what is necessary at a low cost. An effective cost reduction strategy.
- Global Sourcing: This procurement strategy uses international connections to source goods worldwide. It opens up options for working with countries that can offer more economic goods and services.
- TQM – Total Qualify Methods: Only companies that can offer the highest quality with zero errors are considered in this strategy. The six sigma steps are often used to make this strategy work.
- Management of Risk: Countries like China can offer quality goods at low prices, but COVID lockdowns affected the supply chain meaning companies did not receive expected deliveries for a time. Issues like these make risk management an essential strategy for companies seeking a stable supply.
- Green Purchasing: A popular strategy for enterprises and governments revolve around buying recycled or green energy products.
- Vendor Development: Working with smaller companies and helping them increase their company’s standards or capabilities can, in turn, improve the supply and delivery for a company.
- Procurement Skill Training: A project that trains people within the company to provide better procurement increases the quality and cost efficiency of supplies a company receives. Someone trained in procurement is a valuable commodity for any company.
So, companies use the procurement sourcing strategy to identify, evaluate, and select suppliers for goods or services. Also, it involves creating a plan that aligns with organizational goals and objectives while minimizing costs and ensuring quality. If you find our article engaging, then check out our samples!
📝 Procurement Strategy Research Paper Examples
- Information System and Inventory Management ConnectionBusiness essay sample: This work describes the perceptions & opinions of The Development of an Information system for Inventory Management Study factors affecting their drives & examination.
- Risk Management in Arachem(M) Sdn BhdBusiness essay sample: Risk planning and identification in Arachem(M); Risk analysis, evaluation and treatment; Procurement planning and strategies; Procurement solicitation and source selection.
- Amazon.com Inc.'s Strategic Management ElementsBusiness essay sample: Amazon started as an online bookstore. However, it has grown to become a provider of technology products and services.
- Procurment Management in Automotive IndustryBusiness essay sample: The case of supply chain and logistics allows to say that the organizations within this industry adopt a systems orientation to plant location.
- Electronic Future for PurchasingBusiness essay sample: E-purchasing and e-procurement would emerge as a dominant force in marketing products, and this would be the future of business in the next decade.
- KOLO: Inquiry Project of a Global CompanyBusiness essay sample: The aim of the paper is to apply reflective practice and inquiry methods to the problem of procurement management.
- Toyota and Ford: Supply Chain ManagementBusiness essay sample: The contrasting approaches taken by each of Ford and Toyota in managing the supply chain indicates different areas of focus in business processes for both companies.
- Procurement Management in the Automotive IndustryBusiness essay sample: Procurement managers should attempt to reduce transportation costs, inventory managers to reduce inventory costs, production managers to reduce production costs.
- E- Procurement and Buyer- Supplier Collaborative RelationshipsBusiness essay sample: Manufacturers principally use B2B processes to pass down to suppliers the requirements of their manufacturing program.
- Socially Responsible Procurement ConceptBusiness essay sample: Socially responsible procurement concept emerged fifteen years ago when it became clear that international companies were conducting their business operations in an unethical way.
- Heavy Machinery: Supply Chain ManagementBusiness essay sample: Heavy duty industries as well as the small businesses rely on supply of raw materials, machinery, spare parts and maintenance to successfully achieve their objectives.
- Procter and Gamble Company's Strategic Supply Chain ManagementBusiness essay sample: The report analyzes how Procter and Gamble Company can integrate Gillette Company's strategic management issues into its supply chain strategy after taking over the firm.
- Managing Resources and InformationBusiness essay sample: This idea is driven by the need of Canterbury City to come up with pro-active strategies to mitigate and eliminate losses and fatalities due to fire outbreaks.
- The Process of Recruiting New Staff MembersBusiness essay sample: The report explains the process of recruiting new staff members for the project which should improve fire safety awareness amongst young children
- Summary of Supply Chain Logistics ManagementBusiness essay sample: Supply chain management covers many strategies to ensure efficiency in operations. There is a need to establish appropriate logistics to ensure the supply chain management success.
- Samsung Next Business PlanBusiness essay sample: Samsung Next is an outstanding electronics company offering consumers a wide range of entertainment products and services globally.
- Purchasing System at Boeing Australia LimitedBusiness essay sample: This project explores the limitations of the current procurement system at Boeing Australia Limited to implement an e-procurement system.
- Procurement and Supply ReportBusiness essay sample: This report is directed to the board of directors and regards procurement and supply. The importance of procurement and supply functions in business enterprises has continued to increase.
- Greenville Closet: Business PlanBusiness essay sample: The idea was a success, and the group ended up selling T-shirts in various local stores. Today, the time has come for Greenville Closet.
- Strategic Purchasing and Supply Chain ManagementBusiness essay sample: In this paper, the sustainability and conditions for the formation of reliable supply chain management are examined on the example of the delivery of COVID-19 vaccines.