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1. Purchasing
Strategy
Yo u r C o m p a n y N a m e

2. 5 Step Purchasing Sourcing Strategy in Insurance Industry
2
Internal
Analysis
01
• Analyze spend
characteristics
• Baseline current
pricing, sourcing
and buying
practices
• Identify gaps/
opportunities
• Your text here
External
Analysis
02
• Conduct market
analysis
• Analyze trends in
supply, demand and
pricing
• Evaluate supplier
competitive
landscape
• Your text here
Strategy
Development
03
• Identify key sourcing
levers and develop
sourcing strategy
• Quantify opportunity
from: supplier
innovation etc.
• Your text here
Sourcing
Execution
04
• Develop supplier
selection criteria
• Review supplier and
savings, and other
benefits with
stakeholder
• Your text here
Implementation
05
• Setup ongoing
supplier
management plan
• Your text here
• Your text here
Data
Collection &
Scoping
• Finalize scope
• Define service
requirements
• Identify
stakeholders
• Your text here
Process
Steps
Activities
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3. 6 Core Purchasing Strategy to Improve Organizational Efficiency
3
01
02
03
04
05
06
• Involve key vendors and optimize supplier base
to simplify purchasing process
• Your text here
Supplier Optimization:
• Monitors personnel management. Customer relationships,
supplier relationships and benchmarking
• Your text here
TQM Practice:
• Help deal with uncertainties and complexities
causing supply chain disruptions
• Your text here
Risk Management:
• Provides an opportunity for organizations to provide in-house skills
and resources that are unavailable; thereby increasing productivity
• Your text here
Global Sourcing:
• Your text here
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Vendor Development:
• Your text here
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Green Purchasing:
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4. Commodity Purchasing Strategy Process with Market Analysis
4
• Assess and
prioritize
opportunities based
on a thorough
analysis of
departmental
spending
• Your text here
Conduct
Opportunity
Assessment
01
• Develop detailed
commodity profile
including spend
profile &
specifications
• Your text here
Profile
Commodity
02
• Conduct market
analysis to identify
industry trends,
potential new
suppliers etc.
• Your text here
Conduct Supply
Market Analysis
03
• Develop
commodity
acquisition strategy
based on supply
market analysis
• Your text here
Develop
Commodity
Strategy
04
• Conduct
negotiations,
evaluate proposals
etc.
• Your text here
Issue RFx
& Negotiate
05
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Implement &
Manage
Performance
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5. Customer Portfolio Analysis for Purchasing Strategy
5
Develop/Grow Core/Invest Exploit/Harvest Nuisance/Divest
Bottleneck
• Accept dependency
• Your text here
• Reduce consequences
• Your text here
• Reduce dependency
• Your text here
• Reduce dependency find
another supplier
Strategic • Exploit build partnership • Maintain partnership
• Avoid accept locked-in
partnership
• Terminate partnership
• Your text here
Leverage
• Partner if risk increases
• Add text here
• Exploit partner if risk
increases
• Exploit short-term where
possible
• Your text here
• Convenience buying
Non-critical
• Poll requirements (non-
strategic partnership)
• Seek efficient process
• Your text here
• Pool requirements if
attractiveness can be
increased
• Convenience buying
Customer
Purchasing
Portfolio
Positioning
Supplier Account Portfolio Positioning
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6. Developing Purchasing Strategy Plan to Improve Company Competitiveness
6
• Procurement area interactions and
influence
• Team development strategy: career
growth
• Your text here
• Continuous improvement of
operational processes
• Contract negotiation and
evaluation
• Your text here
Procurement Organization Spend Cycle Control
• Knowledge of supplier base
• Development of key suppliers
• Supply base development and
innovation
• Your text here
• Key supplier relationship
management
• Yearly purchasing plan: actions,
objectives etc.
• Your text here
Strategic
Purchasing
Plan
Supply Base Market Procurement Positioning
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7. Framework for Transition from Operative Purchasing to Strategy Management
7
Operative Purchasing
• Ensure availability
• Local suppliers
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Tactical Purchasing
• Cost analysis
• Demand forecasting
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Purchasing Strategy
• Market research
• Supplier assessment
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Strategic Partnership
• Supplier integration
• Focus on customer
value
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2020 2021 2022 2023
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8. Key Strategic Aspects of Purchasing Strategy
8
Role and Scope of
Purchasing
Responsibility
• How should purchasing
help solidify the
competitive position of
the company?
• What should the scope of
purchasing activities be?
• Your text here
Selection and
Development of
Supplier Networks
• What criteria to be set
when choosing
suppliers for the
corporate strategy?
• Your text here
Planning and
Managing Deliveries
and Stock
• How are we going to
approach different
inventory types-materials,
services etc.?
• What will be the shipping
cost versus the storage
costs and the production
interruption?
• Your text here
Quality Control
and Management
of Deliveries
• Your text here
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Identifying and
Managing
Purchasing Risks
• What are the major risks
associated with purchasing,
like financial risk, delivery
and transport risk etc. ?
• Your text here
01 02 03 05
04
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9. 9
Team Manager Building
Business Strategy for
Purchasing Department
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02 - Text Here
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01 - Text Here
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03 - Text Here

10. 10
Thank You
Address
# street number, city, state
Contact Number
0123456789
Email Address
emailaddress123@gmail.com