What is meant by procurement strategy?

A procurement strategy is a high-level procurement plan that aligns seamlessly with the overall business objectives, like cost leadership, innovation, sustainability, and more. It was created with the intention of clearly mapping out how the procurement team will acquire goods and services to fulfill all business requirements.

Procurement strategies can be multi-faceted. A procurement strategy can focus on supporting broader organizational objectives while optimizing spend, mitigating risks, driving procurement efficiency, and improving supplier relationships.

For instance, if an organization focuses on fostering long-term relationships with its vendors over pricing, it might be willing to pay a premium price to acquire goods or services instead of treating vendor relationships as purely transactional.