A procurement strategy is a plan for a company to obtain goods and services from outside suppliers in the most cost-effective and efficient manner. It outlines the types of goods and services needed, the suppliers that will provide them, and the methods and processes used to acquire them. A procurement strategy helps to ensure that the company is meeting its organizational goals and achieving the best value for its products and services.
This procurement strategy template is designed to help procurement professionals create an effective procurement strategy that meets their organization's needs. The template contains guides users through the process of creating a successful strategy, from defining focus areas to setting measurable targets and implementing related projects.
When defining focus areas, it's important to consider the objectives you want to achieve. These focus areas should be specific and clearly defined, such as 'decreasing procurement costs' or 'improving supplier performance'. Once you have identified your focus areas, you can start to think about the objectives that could fall under each one.
Objectives are the goals you want to achieve with your procurement strategy. They should be specific and achievable, and should be linked to your overall organizational goals.
Examples of some objectives for the focus area of Increase Efficiency could be: Reduce procurement costs, and Streamline procurement process.
A KPI or Key Performance Indicator is a measure of success that can be used to track the progress of an objective. For example, if your objective is to 'reduce procurement costs', your KPI could be 'decrease average procurement costs from $200 to $180'. This will allow you to measure your progress towards achieving your goal.
Once you have set your KPIs, you need to create projects (or actions) to help you achieve them. These projects should be tailored to the particular goal you are trying to achieve. For example, if your KPI is to 'decrease average procurement costs from $200 to $180', your project could be to 'negotiate better prices with suppliers'.
Cascade is the world's leading Strategy Execution Platform that helps you track and monitor your objectives and projects. With Cascade, you can quickly set up your strategy and projects, track progress, and measure results. You can also collaborate with your team to ensure that everyone is on the same page and that your strategy is executed quickly and efficiently.