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2. Procurement Strategy Structure
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Organizational Strategy
Supply Chain Strategy
Procurement
Strategy
Manufacturing
Strategy
Strategic
Sourcing
Transaction
Management
Lean
Manufacturing
Inventory
Management
Supplier
Relationship
Management
Quality
Management
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3. Procurement Steps
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Understanding
your Goals
Data
Analysis
Beginning the
Pricing Process
Manage the
Pricing Process
Execution
Continuing
Service
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4. Procurement Workflow Process
Identify
Needs
Write
Specifications
(TOR/SOW)
Choose a
Procurement
Method
Prepare
Solicitation
Documents
Seek, Clarity &
Close Offers
Evaluate
Offers
Advisory Committee
on Procurement
Approval
Award
the Contract
Negotiate
the Contract
Manage
the Contract
Evaluate the
Procurement
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5. Procurement Strategy
Business Unit
Data
Strategic Plans
Market/ Economic
Data
Regional Economic
Forecasts
Major Commodity Indices
Corporate Financial
Data
Earnings Projections
Tax Treatments
Spend Forecast
Data
Cash Flow Savings
Forecasts
Operations
Cost of Procurements
Efficiency Metrics
Earnings/ Budget
Impact
Capital
Inputs Outputs
Procurement
Strategy
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6. Procurement Steps
1 Procurement Strategy
› Standard vs Innovation
› Solution Scope
› Schedule & Service Areas
› Type of Procedure
2 Specification
› Rough Concept
› Specification for
solutions, operation,
services
3 Submission
› Definition of criteria
› Selection of suppliers (only
for invitation procedures, or
direct awards or under
private law)
4 Evaluation
› Evaluation of offers
› Presentation by
suppliers
› Assessment
› Award decision
5 Contract Negotiations
› Draft Contract
› Negotiations
› Legal Examination
Project
Phases
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7. Formulating Procurement Strategy
Procurement
Strategy
Business Data
› Strategic Business Plans
› Budget
Economic Data
› Commodity Indices
› Economic Forecasts
› Supplier Acquisitions
Financial Data
› Projected Revenues
› Projected Cash Flows
› Projected Growth
Operations
› Procurement Cost
› Quality & Service
Spend Forecast
› Savings Forecast
› Demand Forecast
Revenue Impact
› Savings
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8. Creating Procurement Strategy
Direction
Setting
Strategy Organization Culture
Management
Processes
Performance Management
Technology
Work
Processes Strategy
Sourcing
Logistics
Supplier
Development
Transactional
Procurement
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9. Procurement Steps
› Objectives
› Nature of Work
› Scale
› Skill Availability
› Sustainability
› Concentration
› Flexibility
Demand Model
What to source
(within function)
› Activities
› Processes
› Technologies
01
Where to Source
› Locations
› Global Network
(regional, global,
language, etc.)
03
How to source
› Offshore captive
› Near-shore captive
› Third-party
02
How to manage
global Sourcing
› Governance capabilities
› Decision-rights/
responsibilities
› Metrics
› Mechanisms to grow
value
04
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11. Column Chart
0
10
20
30
40
50
60
70
80
90
100
Jan Feb Mar Apr May Jun
SalesInPercentage(%)
Financial year in 2018
Product 01
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Product 02
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13. Dashboard
$0 $50
$100
Profit Sale Volume $75%
This Month
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$0
$50
$100
Market Sale Volume $50%
Last Month
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14. Location
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01
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02
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03
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04
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05
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15. Timeline (Option 1 of 2)
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201520142013
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16. Timeline (Option 2 of 2)
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2016 20182017
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