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What is strategic procurement?

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What is strategic procurement?

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Strategic procurement is the satisfaction ‘of an organisation’s needs from markets via the proactive and planned analysis of supply markets and the selection of suppliers, with the objective of delivering solutions to meet pre-determined and agreed organisational needs.’ Simply put, strategic procurement is the planned process of converting money or kind into goods and services. Strategic procurement and its application to infrastructure The process for infrastructure procurement has a life cycle commencing with the master plan and finishing with completion of the contract. Figure 1 highlights the phases of for the supply of infrastructure. The method of infrastructure project delivery generally varies subject to the complexity of the project, the design and construction risks and the availability of administrative resources. These procurement models of delivery are: • Business as usual: These are standard form contracts, based on a short term view of project identification and roll ou

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