What is the main purpose of a procurement strategy?

The main purpose of a procurement strategy is to determine how to acquire necessary goods and services. This encompasses identifying sources of supply, establishing relationships with suppliers, and defining the policies and processes that guide procurement activities. A well-formulated procurement strategy ensures that an organization can secure the resources it needs efficiently and effectively while aligning with its overall business goals.

By focusing on acquisition, the procurement strategy lays the foundation for balancing cost, quality, and delivery timelines, which are essential for maintaining operational effectiveness. This involves assessing the market for potential suppliers, considering inventory requirements, and analyzing the potential impact of supply chain disruptions.

While analyzing sales data, evaluating employee performance, and negotiating price reductions with suppliers are all important aspects of a procurement function, they are not the primary focus of a procurement strategy itself. Instead, they fall under specific tactics or activities that support the broader goal of strategic procurement.