As an executive, being presented with a procurement strategy can feel like reviewing a black box.
The strategy may look polished and comprehensive, but how can you be confident it’s the right one for your organization? Evaluating procurement strategies is not just about understanding the document—it’s about ensuring the strategy aligns with your organisation’s goals, culture, and capability, and that it will deliver real, measurable results.
Here are five critical questions to stress test your procurement strategy:
- What other strategies did you consider, and why was this the best one for our organisation at this time?
- Understanding the alternatives ensures the selected strategy isn’t just the default option but a deliberate choice tailored to your organization’s needs.
- How does this strategy achieve our organisational goals?
- A procurement strategy must contribute to overarching objectives, whether cost reduction, sustainability, operational efficiency, or risk mitigation.
- How does this strategy deal with our culture and capability?
- Strategies often fail due to cultural resistance or skill gaps within the team. Does this strategy leverage existing strengths or address weaknesses?
- How will we know if this strategy is working?
- Look for clear KPIs, milestones, and measurable outcomes. A strategy without defined metrics is impossible to evaluate.
- What risks could derail this strategy, and how have they been mitigated?
- Every strategy faces risks, from supply chain disruptions to internal resistance. Understanding potential obstacles and the plans to address them ensures the strategy is both realistic and resilient.
By asking these questions, you can uncover potential blind spots and ensure the procurement team is positioned for success.
Want to dive deeper into the types of procurement strategies and how to choose the right one? Read our guide to procurement strategies here.