SPMA7066 Strategic Procurement Management Report - Plymouth Uni

This report provides a comprehensive analysis of strategic procurement management within a business context. It begins by defining procurement and its significance, then delves into various procurement strategies and their role in aligning with overall business objectives. The report explores the strategic role of purchasing functions, evaluating sourcing options and their suitability, and examines factors influencing procurement management and leadership. The discussion covers procurement strategies, purchasing functions, assessment of strategies, and the procurement process. The report emphasizes the importance of procurement in achieving competitive advantage, the evolution of purchasing functions, and the need for adaptability in a dynamic market. It also highlights the importance of supplier relationships, the procurement cycle, and the integration of procurement into the broader organizational structure. The report concludes by summarizing the key aspects of strategic procurement management and its impact on long-term business planning and choices.

Running head - STRATEGIC PROCUREMENT MANAGEMENT
Strategic Procurement Management
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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Procurement Strategies...........................................................................................................3
Purchasing function................................................................................................................7
Assessment of the Procurement Strategies............................................................................8
Process of Procurement Management..................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
The term procurement is classified to be a process which is referred to support the
findings and the agreeing of the terms. It also have the process of basic acquiring the goods
and services, or the work of from any external sources. The process is often done with the
help tenders or process of competitive bidding (Christopher, Mena and van Hoek 2018). The
process of procurement is used for ensuring to the fact the buyers are receiving proper
services in the field of business. The process makes sure that buyers are entitled for receiving
proper services, goods or working in the proper best prices with the following aspects of
quality, quantity and time. According to Witjes and Lozano(2016), there have been many
cases where the many organizations and public bodies have been defined the process of being
intended to be used as the process of fair and open competition, where their business would
be minimized for risks. After the implication of the process, the major decision of the
purchasing is included by the governance of factors like delivering and handling of goods,
with marginal benefits, and with price fluctuation
The following report would be discussing about the procurement processes in a
business. The report would be discussing about the theoretical perspective within business
strategy and its relation to practical situation in areas of procurement. The report would also
be discussing about the strategic role of purchasing functions in an organization. It would
also evaluating the sourcing options which are available for the managers and understanding
the criteria which would be reflecting their sustainability. The report would also analyze the
various factors which would be affecting the procurement management and the leadership,
and how it would be influencing the long term plans for strategic management and choices.

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Discussion
The process of procurement is generally involved by the decisions of buying, under
the scarcity conditions. The process would be more appropriated with the implication of
sound data, which would in fact be a good choice for the use of economic analysis methods,
like cost benefit or cost utility analysis. The activities of procurement could often be divided
in to two categories, namely direct and indirect spend. The process of procurement could be
used in analysis the business strategies,which is used in business management.
Procurement Strategies
According to Scholes(2015), strategies are classified for being the corner stones in the
organization. They are used for defining the directions which is pointed overall in the
business. The strategies are also used for delineating the boundaries of a particular business,
within which the business conducts its operation. It could be said that without proper and
robust strategies implemented in the business, their operations would not be able to set all the
precise objectives set by the owner of the organization operating the business. Therefore,
with the proper implementation of business, it would not be able to succeed in the process of
developing certain traits of the competencies which they would be facing in the market or in
the process of allocation of resources for achieving those set objectives by the organization in
their business. According to Akter et al. (2016), with the help of the strategies, it would be
ideal for those organizations in competing in business environment. Before the implication of
the strategies in the business, the strategies are need to be accessed by an analyst for finding
out the nature of those strategies. The strategies are needed to be adaptive in nature.
Therefore, this particular nature of the strategies would be helping in coping up with the
necessary and unnecessary unpredictable events which could occur in the while competing in
the business environment and conducting its operations. As discussed by
Bıçakcıoğlu,Theoharakis and Tanyeri(2019), these unpredictable events would initially

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impacting the operations which is conducted by the organizations for pursuing their business.
It could be stated that business strategies could often be classified to be emerging as a pattern,
which has cumulative actions, which is could only be with hindsight and rationalized, along
in an organized form of plan. As discussed by Higgins, Omer and Phillips(2015),
organizations face some complex situations, it would be required to react in such events and
provide information of the events in quick manner which the strategic plan would allow the
organization for implementing. The strategies of Captify has been intense in action and helps
in the formation of the proper procurement actions that can be successful for the study of the
business in the most proper manner.
There are some basic perspectives which are needed to be accessed to understand the
main motto of business strategies (Altamony et al. 2016). According to Higgins, Omer and
Phillips(2015), organizations in the business market are bound to adapt some common
techniques which would allow them in considering the basic traits of the adapted strategies.
The organizations are needed to formulate the necessary kind of developments in order to
prescribe the necessary kind of strategies for their organization (Walker et al. 2016). It could
be reflected that most of the strategic movement taken by any organization while the
conduction of business are adopted while facing the various changes in the market. These
factors include the external factors which affects the market, changes like technological
advancement, political changes and environmental changes. According to Rezaee(2018), it
would also include the other necessary changes which occur within the organization, the
internal changes such as change in policies, change in operating manner and change in apex
level management. In the present environment of business in the modern market, changes in
operation of business is imminent.
Therefore, organization would be needing to change their strategies, which would
allow then in developing certain criteria in the strategic management. As discussed by

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Osmonbekov and Johnston(2018), these criteria’s would be helping the organizations in
developing their new strategies, which would help them in adapting the changed, both
external and internal, and operate according to those changes. The new market have made the
organizations bound to adapt changes in their strategic management, which eventually helps
them to survive in the market. According to Hughes, Cox and Akhir(2016),it could be sated
that the strategies which are implemented, out of them, 10 to 30 percent of the strategies
which are intended, is done mainly due to the volatile extraneous factors in the organization
such as introduction of new policies and regulations, new advancement in the technological
field or in aspects of globalization. These certain factors would be regulated for driving the
prescribed strategies for the organization (Pascual et al. 2017). These prescribed factors and
their approaches towards the organization and its approaches would be implementing the
concept of strategic management of business perspectives, which would also be monitoring
theafter processes of the businesses and their operations, which is conducted by the
organizations. The business strategieswould also be entitled for maintaining the after sales
management. It is due to the application of the business strategies, which would initially led
into procurement of the business processes.
According to Peuckert and Quitzow(2017), the process of procurement is classified to
be the analysis of the after sales of the product or the services which is provided to the
potential customers of the organizations through the conduction of business. Basically, the
process is used for investigating and agreeing with the terms of acquiring goods and services
from an external source, through competitive bidding process.According to Witjes and
Lozano(2016),organizations used the process and describes it to be a fair promotion of open
competition in the competitive business market, while helping it for minimizing the risk
factors. Therefore, in the process of maintaining business strategies, procurement processes

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are applied and used. Business strategies are used in areas of procurement within the
business, which initially be would be maintaining the process of business.
According to Witjes and Lozano(2016), basically, the process of procurement has the
scope of meeting the requirements of the users. In any business, the customers are the
potential users, who enjoys the services which are provided by the organization through the
conduction of business. The scope of procurements for Captify includes requirement such as
quality of services provided any specified level of operation, checking of services,
effectiveness of cost and the affordability of the service provided under certain arrangements
and the financial perceptions of the business, along with the separation of the functions.
Being a data driven company, the management of the company provides high interest in the
procurement strategies to ensure smooth flow of business data. As discussed by Christopher,
Mena and van Hoek(2018),therefore, in practical situations, it would be ideal for
implementing the application of procurement with the analysis of business strategies.
With the application of business strategies in practical areas of procurement, there are
certain development areas which should be incorporated for the implementation of proper
functioning of management of areas such as goods or inventory management, category
management, digital transformation, and other areas like procurement influences and
improved procurement agility of business. There areas of development would initially be in
the scope of expansion of the business strategies.
There would be need of strategic concept of procurement context in while accessing
business strategies. The apex level management should be adhering the procurement policies
made by the regulating government, which would initially enable them in buying the good
and providing services, which would be needing to be delivered for the implementation of
classic public services. As discussed by Christopher, Mena and van Hoek(2018),the

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procurement management of category, would initially be the incorporation of continual
monitoring of all the expenditure and the performance of the supplier, while buying specific
categories of goods.
The procurement of public sector is classified for seeking the necessary development
of quality procurement staff for maintaining the quality of work. It would also help in seeking
the highest standards of benchmarking the performance.
Purchasing function
According to Monczka et al. (2016), the purpose of purchasing function or the role of
purchasing function was not primarily be considered to be a mere importance factor in the
field of business. Initially, lately in the modern era, it have been increased to be a competitive
sector, where strategic importance is being provided. The sector of purchasing management is
classified of being an important tool, which initially is used for creating values in the
organization. The initial adequate management of purchasing role is responsible for creating
a competitive advantage in terms of the company. As discussed by Uhl et al. (2017), one
specific traits in the managerial themes, which is considered for containing the function of
purchasing, providing an advantage, which in turn would be classified for being the strategic
alignment of procurement and also in the aspect of procurement processes. With the analysis
which helps in incorporating the developed measures, which would empirically be
contributing to the corporation, the strategic alignment developed in the performance in the
business. ‘
According to Shi, Guo and Fung(2017), these processes would initially be in the
scope of organizing the supply processes, by the use of variety of strategies, which is used in
sourcing of goods, which is related to the function of purchasing. There could be various
choices for incorporating variety of strategies, which would be used as contingent, where

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many factors are used for conducting the factor of good service. This could only be assessed
with the implementation of categorized functional role of purchasing. According to Shi, Guo
and Fung(2017), this would help in enhancing the role, in order to make the corporation or
the organization, effective with the process of functioning the role of purchasing. In essence
to the extension of the variety of strategies which could be sued for sourcing, it would be
seem quite difficult for the organization by the application of the role of purchasing. As
discussed by Uhl et al. (2017), its function with the help of firms’ strategic management for
purchasing goods in order to formulate and provide quality services.
Assessment of the Procurement Strategies
While providing the necessary services and goods for any firm, quality goods is
needed to be assessed. In order to that, it is necessary for incorporating potential supplier,
places of with proper sourcing options available for the organization. According to Hesping
and Schiele(2015), it is inevitable for any firm to locate quality source options, which would
help them in providing quality services and quality goods to their potential customers.
Organizations have been implementing the purchasing strategies, which would help
them in making their operations cost effective. As discussed by Ateş,van Raaij and
Wynstra(2018), the organizations adapt the purchasing strategies so that there would be
certain changes and choices included for the organization in making savings related
procurement. In order to this, the organization should be using the centralized process of
purchasing. This process is incorporated to the organization’s manager in order to incorporate
certain changes related to the process of sourcing from potential sources of suppliers, which
would in fact make the cost efficient purchasing for the organization. As discussed by Amran
et al. (2017), this process of sourcing would also help in making certain changes which are
particularly would be concentrating on the entire activities of procurement in the particular
location of the organization’s operation. Other organizations would be undertaken for the

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single sources of strategy of procurement, which would initially be involving the obtaining of
the excellent dedicated services, which might be for single supplier sometimes. According to
Witjes and Lozano(2016),the strategy of centralized sourcing would be predominated while
the process of sourcing of information technology and that of indirect purchasing of office
supplies and cleanings.
The process of supplier optimization could also be chosen for a process of sourcing,
which is available for the managers of a firm. It would initially be in the by the
implementation of an optimum mixing choices of strategies, where suppliers, who would be
providing the goods for an optimum price and with proper terms. This particular process is
approached by organizational managers when there the organization would not able to find
appropriate suppliers or less in numbers, where the supplier are not able to provide quality
services within in the agreed terms and prices. According to Hughes, Cox and
Akhir(2016),this kind of strategy is considered to be fairly common about many suppliers.
The process of total management of quality is also considered to be a prime sourcing
process or strategy available to a manager. In the particular strategy, the manager would
entitled for providing an increase in the quality service from the supplier, with zero possible
errors. As discussed by Osmonbekov and Johnston(2018), this could also be aligned with a
proper tools such a six sigma for enhancing the process of sourcing.
The process of global sourcing could also be applied over the suppliers for
implementing quality services and enhancing the quality of purchasing strategies. This would
also be helping in the process of forming variety of supplier all around the world. As
discussed by Amran et al. (2017), this sourcing option is applied to the organization when
many other multinational organizations in the world would be considered to process in the

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field as viewed as one big market, and the process of sourcing would be done on the basis of
particular chain of supply and management of particular perspectives.
The development of vendor and green purchasing are the options which is availed for
the managers of a firm or organization while there have been many common purchasing
patterns. This source of purchasing could also be incorporated by the managers of an
organization in order to maintain strategic champion, which would initially be recycling the
purchased products among the environment of business. It would initially be promoting the
procurement practices like minimizing the cost, increasing the quality of the product as well
as the service and also ensuring the quality product are to be delivered at proper times.
Process of Procurement Management
The process of procurement management would initially be effective in the
organization. However, the process could be effected by some factors, which could initially
be effecting the whole organization. As discussed by Yang, Du and Li(2019),factors like
financial environment, change in political agenda and environment, fluctuation in the
environment, and advancement in technology are some of the crucial factor, which could
effecting the procurement management. Although, some of the common factors could also be
effecting the leadership of the organization too. According to Zhao et al. (2016), economic
factor and technological factor are the two common factor, which could also be effecting the
leadership of the organization, as well as the process of procurement management.
These factors would initially be effecting the operation of the organization, by
implementing changes in the potential processes of business conduction. The long term
choices of the organization is also affected by these factors. As discussed by Schreiner(2018),
the main challenge in the financial environment would be posing a fluctuation of currency.
This would affect the organization’s long term plans of processing revenue and maintaining

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their profit margin. The change in political environment of the country would affect the
organization’s long term plans. It could also be said that, with the adaption of new
technological advancement in the organization might affect the present condition of
operations and business processes. As discussed by Ateş,van Raaij and Wynstra(2018),
therefore, this would be harm the long term plans of the organization as well.
With the management of the perceptions, the procurement managers are entitled for
understanding the potential of the processes and how it would be affecting the internal
customers and understand the perception of service development and as well as the processes
of services which is provided.
Conclusion
Thus, the report could be concluded by providing a brief overview of the processes of
procurement in business. The report have provide a brief understanding about the theoretical
perspective that arises within the strategies which are incorporated by the organization for the
purpose of business conduction. The report afterwards have described the application of the
business strategies among the areas of procurement in the organization. The report have also
provided a discussion over the factors of the function of the role of purchasing, within the
organizations. It have also discussed about the sources which are available within the
organization for the managers, which they could incorporate within for locating vital sources,
and understand the suitability of the processes. Afterwards, the report have provided a brief
discussion of the factors which are effecting the procurement management and the leadership,
and the processes that how they are effecting the long term plans of the organization.