From Company Strategy to Purchasing Strategy to Commodity Strategy
Koen Vandermarliere, Business Consultant, Belgium, SIG Leader
The purchasing department is an important department in the company. As such it is a logical question to the Purchasing manager/director to define his purchasing strategy and communicate this to the board. What information is needed to build such a strategy?
Just like any departmental (functional) strategy the start is from the COMPANY STRATEGY, and vision. Purchasing is a supporting department and needs to support the primary goal of the company: supplying a product or service to paying customers.
Once you clearly know what way the company will go, you can define how the purchasing department will contribute. Examples can be cost reduction, innovation, limitation of risks...
Based on that direction you can define your PURCHASING STRATEGY towards securing supply, cost based re-engineering, Sourcing of new suppliers or techniques... This can imply different strategies for different material types. For example a company could be looking for pure cost reduction on Indirect ...