The document outlines a comprehensive procurement strategy that includes organizational structure, supply chain management, and relationship management for suppliers. It details the procurement workflow process, strategic formulation, and factors affecting procurement decisions such as market data and operational efficiency. Additionally, it emphasizes the importance of customizing the strategy to fit the specific needs of the company and its goals.
Procurement Strategy Structure
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Organizational Strategy
Supply Chain Strategy
Supplier Relationship
Management
Transaction Management
Strategic Sourcing
Procurement Strategy Manufacturing Strategy
Quality Management
Lean Manufacturing Inventory Management
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3.
Procurement Steps
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Understanding
yourGoals
Data
Analysis
Beginning the
Pricing Process
Manage the
Pricing Process
Execution
Continuing
Service
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4.
Procurement Workflow Process
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Identify
Needs
Write
Specifications
(TOR/SOW)
Choose a
Procurement
Method
Prepare
Solicitation
Documents
Evaluate
Offers
Seek, Clarity &
Close Offers
Award
the Contract
Negotiate
the Contract
Manage
the Contract
Evaluate the
Procurement
Advisory Committee
on Procurement
Approval
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5.
Procurement Strategy
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InputsOutputs
Business Unit Data
Strategic Plans
Market/ Economic Data
Regional Economic Forecasts
Major Commodity Indices
Corporate Financial Data
Earnings Projections
Tax Treatments
Spend Forecast Data
Cash Flow Savings Forecasts
Operations
Cost of Procurements
Efficiency Metrics
Earnings/ Budget Impact
Capital
Procurement
Strategy
Strategy
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6.
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Approach toProcurement
Procurement Strategy
› Standard vs Innovation
› Solution Scope
› Schedule & Service Areas
› Type of Procedure
Specification
› Rough Concept
› Specification for solutions,
operation, services
Submission
› Definition of criteria
› Selection of suppliers (only for
invitation procedures, or direct
awards or under private law)
Evaluation
› Evaluation of offers
› Presentation by suppliers
› Assessment
› Award decision
Contract Negotiations
› Draft Contract
› Negotiations
› Legal Examination
Project
Phases
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7.
Formulating Procurement Strategy
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Business Data
› Strategic Business Plans
› Budget
Economic Data
› Commodity Indices
› Economic Forecasts
› Supplier Acquisitions
Financial Data
› Projected Revenues
› Projected Cash Flows
› Projected Growth
Operations
› Procurement Cost
› Quality & Service
Spend Forecast
› Savings Forecast
› Demand Forecast
Revenue Impact
› Savings
Procurement
Strategy
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8.
Creating Procurement Strategy
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Direction
Setting
Strategy Organization Culture
Management
Processes
Work
Processes
Performance Management
Technology
Strategy
Sourcing
Logistics
Supplier
Development
Transactional
Procurement
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9.
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Services Sourcing Strategy Framework
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What to source
(within function)
› Activities
› Processes
› Technologies
How to source
› Offshore captive
› Near-shore captive
› Third-party
Where to Source
› Locations
› Global Network
(regional, global,
language, etc.)
How to manage
global Sourcing
› Governance capabilities
› Decision-rights/
responsibilities
› Metrics
› Mechanisms to grow value
› Objectives
› Nature of Work
› Scale
› Skill Availability
› Sustainability
› Concentration
› Flexibility
01
03 02
4
Demand Model
Combo Chart
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0
20
40
60
80
100
2014 2015 2016 2017
Profit
(In
Thousands)
Product 01 Product 02 Product 03
13.
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Our
Mission
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14.
Editor
Jasmin Parker
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Marketing Director
Tom Parker
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Marketing Manager
Anita Smith
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Meet Our Team
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15.
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Idea orBulb
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