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"The price is what you pay. The value is what you get."
In modern procurement, it is about much more than just ordering goods or services.
Especially in times of complex supply chains, global procurement markets, and increasingly unpredictable risks, strategic procurement has gained importance. But what exactly does it involve? How does it work, what advantages does it offer – and where are the challenges?
In this article, we explain step by step what strategic procurement is and how companies can benefit from it.
Strategic procurement encompasses all long-term, planning, and designing activities within a company’s procurement management. While operational procurement focuses on day-to-day tasks (such as order processing and delivery tracking), strategic procurement deals with cross-transactional decisions that ensure a company’s long-term competitiveness.
The main focus includes:
In simple terms: Strategic procurement looks ahead, analyzes markets and suppliers, and ensures that companies are well-supplied in the future.
Strategic procurement is based on a holistic approach and follows clear steps:
In the first step, the company determines what is needed in the short, medium, and long term. This includes current demands as well as anticipated future requirements.
The procurement market is analyzed to identify potential suppliers, price developments, and opportunities for innovation. Methods such as ABC analysis, benchmarking, or Total Cost of Ownership (TCO) can help here.
Suppliers are not only selected but also evaluated and continuously developed. A strong strategic procurement builds long-term and reliable partnerships.
Negotiations are conducted to achieve the best conditions, delivery terms, and prices. The focus is not only on short-term savings but also on the flexibility and reliability of suppliers.
Strategic procurement also means minimizing risks such as delivery shortages, quality issues, or geopolitical uncertainties. Diversifying suppliers or developing contingency plans can help here.
Ongoing processes are analyzed to identify and eliminate inefficiencies. The use of digital tools, such as SRM software (Supplier Relationship Management), plays a key role.
A well-implemented strategic procurement offers companies numerous benefits:
Long-term negotiations and framework agreements help reduce costs. Strategic procurement ensures better prices and planning security.
Early analysis and clear strategies help prevent delivery shortages and make supply chains more robust.
Close collaboration with suppliers allows companies to integrate new technologies and products early on.
Standardized workflows and digital tools reduce effort and minimize errors.
Long-term partnerships improve supplier reliability and quality.
Despite its many benefits, strategic procurement also comes with challenges:
Modern strategic procurement relies heavily on digital solutions. SRM tools (like relatico) help manage supplier information, analyze data, and automate processes. This creates more time for important strategic decisions.
Strategic procurement is not just a concept – it is a central pillar for long-term success. Companies that actively develop this area not only secure cost and risk advantages but also strengthen their competitiveness in an increasingly complex world.
With clear processes, strong supplier relationships, and the use of digital tools, procurement becomes a real value driver.
Do not leave your procurement to chance – think strategically! With relatico, you can optimize your supplier relationships and take your procurement to the next level.
Bernd possesses extensive experience in strategic procurement, shaped by his tenure at Eckes-Granini, Symrise and DuPont de Nemours. Currently, he is focused on sustainable sourcing and supply chains, collaborating with the relatico team to develop practical software solutions. Additionally, Bernd runs his own agricultural business and is involved in supply chain projects globally.
