{"id":11230,"date":"2021-04-11T23:01:06","date_gmt":"2021-04-12T03:01:06","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/?page_id=11230"},"modified":"2021-09-28T10:04:23","modified_gmt":"2021-09-28T14:04:23","slug":"whats-the-role-of-your-purchasing-strategy","status":"publish","type":"page","link":"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/whats-the-role-of-your-purchasing-strategy\/","title":{"rendered":"What\u2019s the Role of Your Purchasing Strategy"},"content":{"rendered":"

What\u2019s the Role of Your Purchasing Strategy?<\/h3><\/div><\/div><\/div>

PurchTips edition #423<\/p>\n<\/div>

Is Your Purchasing Strategy Missing A Key Link?<\/h4><\/div><\/div><\/div>

I have two similar questions for you. One is easy to answer.\u00a0 The other isn\u2019t.<\/p>\n

The first question is \u201cWhat is the role of a purchasing strategy?\u201d\u00a0 The second is \u201cWhat is the role of your purchasing strategy?\u201d<\/p>\n

The universally correct answer to the first question is\u00a0\u201c<\/strong>To support the organization\u2019s overall strategy.\u201d<\/strong>\u00a0 Easy. But there is no universally correct answer to the second question. The specifics needed to answer that question require a thorough understanding of your organization and its overall strategy.<\/p>\n

That\u2019s often a key link that\u2019s missing. Many purchasing departments place top priority on achieving cost savings. And that is very appropriate if you\u2019re working for a mature organization that sees challenges in maintaining profitability as it reaches the \u201cdecline\u201d phase of its business cycle.<\/p>\n

But, if the organization\u2019s strategy is to be the most innovative company in its industry to capture market share, purchasing cost savings should take a back seat to supply base innovation. If the organization\u2019s strategy is to develop a brand as the highest-quality company in its industry in order to monopolize a niche, quality improvement should be a higher priority than cost savings.<\/p>\n

Mismatches between\u00a0purchasing strategy<\/a><\/strong>\u00a0and organizational strategy run rampant. Sometimes, it\u2019s an embarrassment to the profession. I encourage you to be part of the solution, not part of the problem. To do so, I recommend that you immerse yourself in understanding your organization\u2019s overall strategy. Then, develop the best answer to this question: What should we be doing in purchasing to maximize our contribution to that strategy?<\/p>\n

NLPA Library:<\/strong>\u00a0Looking for authoritative\u00a0procurement templates<\/a>, tools, webinars, and more?\u00a0Stop trying to create resources\u00a0from scratch and start taking advantage\u00a0of having exactly what you need right at your fingertips in the NLPA Library.<\/p>\n<\/div><\/div><\/div><\/div><\/div>

Want A More Rewarding Procurement Career?<\/h5><\/div>
<\/span><\/div>

Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Nothing will change unless you take action towards becoming a world-class procurement professional. Work your way up NLPA\u2019s CPO Suite Programs, an enhanced version of our SPSM certifications and bring the most modern procurement practices into your organization and achieve your career potential.<\/p>\n

Download our NLPA Course Catalog<\/strong> for a comprehensive list of the CPO Certification Programs and their corresponding modules per level.<\/p>\n<\/div>

Download<\/span><\/a><\/div>