Shopping strategies - are they worth doing?

Purchasing strategies are becoming an increasingly fashionable topic among businesses. However, as interest in this topic grows, so does the level of doubt and the number of questions in the categories of „is a purchasing strategy necessary for my company?”, „what benefits will I get from it?”, „when will it pay off?” or „how much do I need to invest in it?”.

The answer to this question is clear. It is the famous „it depends”. And what does it depend on?

When is a purchasing strategy needed for your business?

For years, research has been conducted focused on the activities of companies in various industries. The results of these studies show that, for most businesses, the overriding goal, just behind increasing revenue, is to maximise the value generated by suppliers. Unfortunately, for most managers, this means price-to-price savings. This is the top priority for as many as 80% managers managing this area. So if we are running a business that requires multidimensional competitiveness, is a purchasing strategy a must for us?

Purchasing strategy is helpful whether companies are focusing on innovation, following customer expectations or just focusing on cost reduction. It is a plan that helps you achieve your goal: to get from where you are now to where you want to be in the future. And this is what a purchasing strategy will serve, together with an action plan to be taken.

A properly prepared plan will allow the realisation of a goal path based on good preparation, estimated costs, reconnaissance of potential suppliers and customers of the final product. The time horizon and thus the level of detail of the strategy must be matched to the specifics of the industry in which the company operates. It will be rather disadvantageous if the time to develop the strategy turns out to be longer than the lifetime of the technology to be purchased, and this may happen in the case of very rapidly changing products J. At the same time, it should be remembered that the benefits of implementing a purchasing strategy may not appear immediately. A bit of patience may be required which, unfortunately, is quite at odds with the pressure for a result in the HERE and NOW.

Differences between purchasing strategy and competitive strategy

For companies with a holistic view of the supply chain, the link between purchasing strategy and market strategy seems essential and obvious. One of the key elements is to gain a competitive advantage understood as the generation of VALUE for the customer, which is defined by a mix of innovation, service level and price competitiveness. If your company is focused on identifying the needs of your customers and providing them with solutions of the highest possible VALUE, then you need suppliers who can meet your needs. You need to align your supplier base with your customers' expectations.

In summary - a purchasing strategy, regardless of its level of detail, is essential for any business. It is a plan that allows you to meet your company's objectives and generate customer satisfaction.

Eveneum experts support their clients by developing purchasing strategies adapted to business realities and by training on how to build purchasing strategies.