procurement strategy

Syllable breakdown

Dictionary meaning

the long-term plan governing how an organisation sources the goods, services, and materials it requires, encompassing supplier selection and qualification, make-or-buy decisions, sourcing structure, contract types, risk management, sustainability requirements, and the balance between cost, quality, and supply security; procurement strategy ranges from transactional approaches that treat each purchase independently and prioritise lowest price, to strategic approaches that develop long-term collaborative relationships with a smaller number of preferred suppliers; category management, supplier development, total cost of ownership analysis, and supply risk assessment are core tools of strategic procurement