Create a durable purchasing strategy

Imagine building a house without a plan, a little chaotic, right? Well, it’s the same for a company without a purchasing strategy. Beyond a simple exercise, it is imperative to ensure effective management of resources and optimization of costs. This methodical approach not only boosts added value in the procurement process but also minimizes risks and strengthens strategic relationships with suppliers. Find out in this article what steps to follow to implement in your organization! 

What is a purchasing strategy?

A purchasing strategy, also called a supply management strategy, is a set of decisions and planned actions implemented by a company to manage and optimize its purchasing process. It aims to align procurement activities with overall business objectives, while seeking to maximize added value, reduce costs, minimize risks and strengthen supplier relationships. 

This strategy takes into account various elements, such as the analysis of the specific needs of the company, the selection and management of suppliers, the digitalization of purchasing processes, the continuous evaluation of performance, the integration of innovations and good practices, as well as training and awareness of teams. It can be influenced by financial, operational, social and environmental considerations. 

How to implement a purchasing strategy

1. Prior needs analysis

Needs analysis is the crucial starting point for a successful purchasing strategy. According to CIPS (Chartered Institute of Procurement & Supply), companies that carry out an in-depth analysis of their needs see on average a 20% increase in the efficiency of their purchasing processes. This phase involves a thorough understanding of the specific business requirements. Precisely identifying priority purchasing categories allows you to concentrate efforts where they will have the most impact. Assessing operational and budgetary constraints ensures that the strategy is realistic and aligned with the company’s capabilities. Understanding the expectations of internal stakeholders ensures adequate consideration of perspectives and promotes adherence to the strategy. 

2. Alignment with global objectives

An isolated purchasing strategy can compromise a company’s overall goals. Strategic alignment is therefore imperative. By integrating the vision, mission, and values of the organization into the purchasing strategy, we promote overall coherence. This also ensures synergy between the different functions of the company, avoiding silos and maximizing the use of resources. An aligned strategy provides common direction and strengthens the procurement function’s contribution to overall business success. 

3. Selection and management of suppliers

The quality of relationships with suppliers has a direct impact on the supply chain. A McKinsey survey reveals that 70% of companies consider the quality of supplier relationships as a key factor in the success of their purchasing strategy. Careful selection of reliable partners, aligned with the company’s objectives and values, is essential. Establishing long-term partnerships promotes stability and reduces risk. Proactive management of supplier relationships, based on collaboration and transparency, strengthens mutual trust. Open and regular communication helps anticipate potential challenges and resolve issues quickly, ensuring a smooth supply chain. 

4. Digitalization of purchasing processes

Digitalization is a major catalyst for the efficiency of purchasing processes. Automation, from purchase requisition to contract management, improves productivity by eliminating manual tasks and reducing errors. It also provides real-time visibility across the entire procurement process, enabling informed decisions. Digitalization increases agility, making it easier to adapt to market developments and internal changes. 

5. Continuous evaluation and adjustments

A purchasing strategy is not fixed, it requires continuous evaluation. Regularly analyzing the results allows you to measure savings, identify areas for improvement, and adjust the strategy according to market changes. This agility ensures constant adaptation to new conditions and maintains the relevance of the strategy over time. 

6. Integration of innovations and best practices

Innovation and the integration of best practices are essential elements to maintain a competitive purchasing strategy. According to a Hackett Group report, companies that actively integrate innovations into their procurement strategy have 16% higher financial performance compared to their peers. Following technological developments and market trends makes it possible to anticipate changes and incorporate innovative solutions. Integrating sustainable practices contributes to corporate social responsibility while ensuring responsible supply chain management. 

7. Training and awareness

Involving teams in the purchasing strategy requires adequate training and awareness. Raising awareness of purchasing strategy issues creates a common understanding of objectives and motivates team commitment. Training in tools and methodologies ensures effective use of available resources. Creating a culture focused on efficiency and cost optimization ensures continued adherence to the strategy, strengthening its long-term viability. 

Do not hesitate to contact our experts to help you implement your purchasing strategy!