Separate Strategic Procurement from Tactical Purchasing

Published On:
May 02, 2012
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Today’s procurement function can be so much more than just the buying arm of the enterprise, focused only on getting the lowest cost. By emphasizing purchasing efforts in product categories that are critical to the business, the procurement and sourcing organization can build and manage supplier relationships that deliver results for the enterprise.

In the APQC study Supplier Category Management: Driving Value Through the Procurement Organization, one finding was that procurement functions have separate groups for strategic sourcing and tactical purchasing. The two groups have a common reporting structure, keeping the groups united in pursuit of common goals.