Procurement strategy may be defined as a plan or process for spend optimization, procurement operations and other value contributions such that they are aligned with the overall corporate objectives. It is immensely important to develop a comprehensive procurement strategy to ensure that the procurement organization is aligned with the overall corporate strategy and to ensure that progress is being made.

The Procurement Strategy Elements may broadly be differentiated as Inputs and Outputs.Let’s observe this through the chart below:

The two important Result Areas to look for are:

1. Value: The Value that the Procurement organization adds to the corporation; and
2. Efficiency: Procurement organization’s operational efficiency and effectiveness 

Value may be realized by leveraging procurement automation in the form of :

• Spend Management and Spend Analysis
• Contract Management
• Savings Management
• Tools to optimize Return on Procurement Investment
• Supplier Management

Efficiency may be measured through factors such as:

• Procurement Cycle Time
• Procurement Cost per dollar
• Spend per Employee
• Percentage of Revenue
• Utilization of Technology
• Number of Sourcing Events

These KPIs may differ from vertical to vertical, to get a holistic view interact and network with more than 100 procurement proffessionals at Horizon 2013. Register and attend the year’s biggest Procurement Conference, Horizon 2013, where  20+ confirmed speakers from top analyst firms and large enterprises will share their views and experiences with respect to Procurement. To name a few – Coca Cola, AMD, Emirates, Celgene, Carlson, Cubist Pharmaceuticals, Ercot, University of Missouri, Emory University, Weatherford, Saudi Aramco, NiSource, The Hackett Group, Forrester Research, Inc. & Gartner etc

Further on th above topic, do not miss the session by Mr. Andrew Bartolini , Ardent Partners’ Chief Research Officer on ‘Built to Last: The Critical Elements to a Successfull Procurement Transformation’ where he will express his views on the importance of procurement transformation and continual improvement to the larger enterprise in today’s dynamic business landscape. His speech will help procurement organizations design, plan, build and execute a proper procurement transformation program and utilize leading edge strategies to broaden the scope of influence and deliver greater value to the enterprise.