Strategic Procurement Name of the University Author's Name

Running head: STRATEGIC PROCUREMENT
Strategic Procurement
Name of the Student
Name of the University
Author’s Note:

1
STRATEGIC PROCUREMENT
Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Outsourcing Process in Strategic Procurement................................................................2
2.2 Cost being the only consideration in the Outsourcing Process........................................3
3. Conclusion..............................................................................................................................6
References..................................................................................................................................7

2
STRATEGIC PROCUREMENT
1. Introduction
Strategic procurement refers to long term plans to make sure timely supply of goods
as well as services, which are critical to the capability of an organization for the core purpose
of fulfilling the major business goals (Dong, Tang and Zhou 2018). The team would utilize
the data from the procedure of strategic procurement for development as well as
implementation of a strategic procurement plan. Outsourcing is a specific strategic tool,
which is commonly used for facilitation of opportunism that could undermine the principle of
strategic procurement (Niu et al. 2019). The following report outlines a brief discussion on
the factor that cost is the only consideration within the outsourcing process for strategic
procurement.
2. Discussion
2.1 Outsourcing Process in Strategic Procurement
Procurement outsourcing is the significant transferring of specific procurement based
activities, associated to supplier management and sourcing to any third party for the core
purpose of reduction of the total costs or might tighten the organizational focus on the core
competencies (Mburu 2017). Categorization of procurement as well as vendor management
of the indirect materials or services could be referred to as the most significant outsourced
activity. Outsourced procurement teams eventually enable the organizations to provide
advantages immediately from the expertise and support of the most experienced procurement
specialists (Wang et al. 2017). It subsequently avoids the overall creation of an internal team
and new resources as well as the respective time for the team to structure itself, its expertise
and its processes.
This type of outsourcing process is a major solution for different organizations, which
do not comprise of any internal competencies, however wants to gain maximum advantage