What does strategic purchasing mean?
Strategic purchasing differs from operative purchasing in that it defines a purchasing strategy that consists of coordinated measures, which subsequently bring sustainable success to a company.
The purchasing or procurement strategy that was defined by strategic purchasing is coordinated with a company’s overall strategy. Product group strategies, which can ultimately be implemented in operative purchasing, are broken down in detail below.
Strategic purchasing attempts to optimize the following areas of emphasis:
- cost-efficient purchasing
- process-efficient purchasing
- manage globalization securely
- ensure innovation skills
- minimize risks in purchasing and along the supply chain
- determine the material and raw material demands (short, intermediate and long-term)
- determine the ideal time for purchasing for each product/ raw material
- utilize storage capacities efficiently (determine terms of transport, production times, etc.)
- ensure that there are enough supplies for the production department
- observe the market situation and the company’s position, and adjust the strategies accordingly
Dashboards & Insights
Dashboards & Insights is a complete Procurement Controlling and Spend Management solution. It provides all functions, KPIs and measures needed for professional Spend Analysis.
With its standardized ERP interfaces you can connect the spend cube of Dashboards & Insights within a short time frame to any ERP system (e.g. SAP, Navision, Oracle etc.).
Here you will find important terms related to spend management explained in a clear way. Small knowledge base for quick information or in full for your further education. This controlling glossary is constantly being expanded and improved.
Read blog articles about spend management, initiative management and data management in procurement, or other articles from our experts.