What Is Strategic Procurement?

Strategy Sourcing is a thinking method that is different from conventional purchasing. It differs from purchasing in the general sense in that the former focuses on the factor of "lowest total cost" and the latter focuses on the factor of "single lowest purchasing price." The so-called strategic procurement is a systematic and data-based procurement method. Simply put, strategic procurement is the process of establishing a service supply channel with the lowest total cost, and general procurement is a simple transaction to obtain the current required resources at the lowest procurement price.

Strategic procurement

"Strategic Purchasing" was first proposed by the well-known consulting company AT Kearney in the 1980s. Kearney is committed to strategic procurement research and promotion, and has provided two-thirds of the world's top 500 companies. Through strategic procurement consulting services. "Strategic procurement" is the planning, implementation, control of strategic and operational

Strategic procurement, as a link that integrates the strategic goals and operating activities of companies and suppliers, includes four aspects: supplier evaluation and selection, supplier development, the establishment of long-term trading relationships between buyers and sellers, and procurement integration. The first three aspects occur between the purchasing department and the external supplier group, collectively referred to as procurement practices; the fourth aspect occurs within the enterprise.

Supplier evaluation and selection

Supplier evaluation and selection are the most important aspects of strategic procurement. Supplier Evaluation Systems (SES) include: (1) a formal supplier certification program; (2) a supplier performance tracking system; and (3) a supplier evaluation and identification system.

supplier

Lowest total acquisition cost

The total purchase cost is not only a simple price, but also the role of purchasing

Centralized purchasing

Increase the bargaining power and reduce the unit through the concentration of purchases

Step 1 "Organize first": Establish a strategic procurement team across departments

Step 2 "Gather things together like things":

1.

The four foundations are cost management, a report card on the supplier's product quality and delivery accuracy, an evaluation of the supplier's technical capabilities, and a degree of integration (wavelength, subjective evaluation of the degree of close cooperation between enterprises and the degree of engagement of corporate culture) .