After you execute a digital procurement strategy, you need to track and measure the progress and the success of the implementation. OneHQ have been helpful in scoping, procuring and configuring IT hardware whilst our office was in the midst of construction. Hence, this article attempts to cover what constitutes strategic sourcing, how it differs from tactical sourcing, and its driving forces and processes. Today’s procurement landscape calls for a more strategic approach aligned with the overall organizational strategy. A procurement strategy defines how to procure a service, product or components at the highest level. The IT procurement strategy serves as a guard for preventing ‘maverick spend’ IT spending that occurs outside of your process. It’s about seeing the big picture. 1. Procurement objectives are usually aligned with a company's business objective as well. To do this, you must obtain data from internal stakeholders, suppliers, and any other parties who are involved in the procurement process. Ideally, your procurement strategy framework should include the following: A flexible and robust procurement strategy minimizes errors, makes it easy to find savings opportunities, helps to eliminate maverick spending and insurance policy compliance. A procurement strategy plan is one of the most important documents or plan examples that your business should have. After you have developed a strategy, it’s time to execute it. comprehensive strategy in place, it’s impossible to know whether or not your procurement organization is aligned with the corporate strategy and whether or not progress is being made. A procurement strategy is developed in order to establish the direction of how procurement should be organised in order to implement the procurement policy. Regardless of your organization size, there are few common types of procurement strategies that anyone can adopt including cost reduction, supplier management and optimization, risk management, total quality management, global sourcing, and green purchasing. Get the gear you need to support your business at the best possible terms from our team of IT procurement experts. It is a stepwise approach of purchasing a firm's supplies in a cost-effective manner. In addition to understanding how each procurement project can create a ripple effect with a far-reaching impact.. Strategic sourcing, as an approach to procurement, has been around since the 1980s.However, roles dedicated to the practice are relatively new. “Typically, your procurement strategy depends on multiple factors including your available budget, the purchase timeline, possible risks, total cost of ownership and more. With an IT procurement policy and procedure, your business can seamlessly execute its projects with the critical IT products and services by its side. It is worth noting that sometimes the best strategic sourcing decision may be not to make a purchase at all. Collect the necessary data from suppliers and potential suppliers. If a decision is made to acquire from outside the project, the procurement strategy is to determine the project delivery method, the type of legally binding agreement(s), and how the procurement will advance through the procurement phases.. Take time to implement a digital procurement strategy as it will enable your company to spend more time with suppliers and the strategic parts of procurement instead of transactions and administrative tasks. A typical IT procurement process involves determining IT requirements, communicating with suppliers, administering procuring contracts, managing the assets, and quality assurance. It serves as a guide for your organization and should be updated annually to ensure it remains an alignment with your overall business strategy. We just need some information from you so our specialists know how to assist you better. However, being a term that encompasses a large number of sub-concepts, understanding strategic sourcing might get complex. Dark spending is also a threat as it undermines the trust upper management have in your IT. 1. Engage in a what-if discussion to challenge the status quo and question the obvious. Enter your email below to begin the process of setting up a meeting with one of our product specialists. Often, these strategies focus on options such as reducing costs and mitigating risks.”. Procurement Strategy Template. Create a list of best practices that will eliminate the existing inefficiencies. You must also stop excessive or unauthorized spending. Modify your procurement policy to address the risks you’ve identified during the SWOT analysis. It necessitates effort from all departments of a company. Mistakes that are common include purchasing without defined tasks, failing to achieve efficiency despite appropriate and suitable purchasing tools, and failing to find a balance between local and central purchasing. Make sure your IT procurement project has a champion. SECTION 5. Each step of the procurement process from identifying the sourcing needs to completing the payment is streamlined. For strategic sourcing managers, procurement is about more than simply finding the lowest price. That’s why procurement leaders have the responsibility to take the necessary actions to implement a successful strategy. Does leasing this equipment make sense for my business? For example, if you need to reduce maverick spending, you should implement procurement software that makes the process transparent.