Table 1 5 steps of the strategic and... | Emerald Publishing

Table 1

5 steps of the strategic and operative purchasing process and their description

Strategic		Operative
Step name	Description	Step name	Description
S1. Analysis of demand and market research	- investigation of purchasing volumes, cost structures and market trends to develop procurement strategies	O1. Determination of requirements	- determination of short-term material requirements based on orders, stock levels or production plans
S2. Supplier selection and evaluation	- identification, qualification and evaluation of potential suppliers based on criteria such as price, quality and sustainability	O2. Inquiry and order	- ordering goods or services according to existing contracts or price inquiries from suppliers
S3. Contract and price negotiations	- negotiation of framework agreements, quantity discounts, payment terms and delivery conditions	O3. Delivery monitoring	- checking delivery dates, tracking orders and communicating with suppliers in the event of delays
S4. Supplier management and development	- building long-term partnerships, regularly assessing performance, managing risk and optimising collaboration	O4. Incoming goods and quality control	- checking the delivered goods for quantity and quality, initiating complaints if necessary
S5. Optimisation of the purchasing strategy	- continuous improvement of purchasing processes, cost analyses and introduction of new technologies or methods to increase efficiency	O5. Invoice verification and payment processing	- reconciliation of invoice, order and goods receipt, release of payment

Strategic		Operative
Step name	Description	Step name	Description
S1. Analysis of demand and market research	- investigation of purchasing volumes, cost structures and market trends to develop procurement strategies	O1. Determination of requirements	- determination of short-term material requirements based on orders, stock levels or production plans
S2. Supplier selection and evaluation	- identification, qualification and evaluation of potential suppliers based on criteria such as price, quality and sustainability	O2. Inquiry and order	- ordering goods or services according to existing contracts or price inquiries from suppliers
S3. Contract and price negotiations	- negotiation of framework agreements, quantity discounts, payment terms and delivery conditions	O3. Delivery monitoring	- checking delivery dates, tracking orders and communicating with suppliers in the event of delays
S4. Supplier management and development	- building long-term partnerships, regularly assessing performance, managing risk and optimising collaboration	O4. Incoming goods and quality control	- checking the delivered goods for quantity and quality, initiating complaints if necessary
S5. Optimisation of the purchasing strategy	- continuous improvement of purchasing processes, cost analyses and introduction of new technologies or methods to increase efficiency	O5. Invoice verification and payment processing	- reconciliation of invoice, order and goods receipt, release of payment

Source(s): Authors’ own compilation based on Bundesverband Materialwirtschaft, Einkauf und Logistik e.V. (2016), Van Weele and Eßig (2017), Bogaschewsky (2021)