Procurement Strategy explains how an organization seeks to optimize external spending, procurement costs and other value contributions in a manner that is aligned with corporate objectives.
Many companies lack a formal enterprise-wide strategy on how value is to be achieved through the procurement of goods and services. As a result, it is very difficult to know whether the procurement organisation contributes to the corporate objectives and how this contribution can be measured.
A clearly articulated procurement strategy will demonstrate alignment with corporate strategy and objectives on issues such as process/cost efficiency, spending reduction, product innovation, global/local sourcing, and corporate and social responsibility.
Craig Millis, Director of GRA speaks about how a procurement strategy can deliver great business value.
