Question

Discuss the strategic, tactical and operational roles of the procurement.

Answer 1

Strategic procurement:-

Long-term procurement that ensures timely supply of goods and services that is critical to an organisation ability to meet its core business objectives. It is proactive in nature and focused on adding value over a long-term. It is a cyclical, holistic approach that looks beyond simple cost-saving measures. It also, includes framework agreements, the development of category strategies and the monitoring of suppliers' performance.

Tactical procurement:-

deals with the short term needs or one-off procurement of goods and services. In carrying out tactical procurement, the buying organisation must first identify the goods and service to be procured and determined the supplier, manufacturers or OEM, with an acceptable prospect of being able to deliver the goods and services satisfactorily in all aspects with respect to quality, timeliness and at the lowest cost.

Operational procurement:-

is the procurement of goods and services that are generally required to sustain daily production or business activities. What some organisation does is to outsource those goods that are need on daily or weekly basis to reduce their inventory holding cost.