Tactical vs. Strategic Purchasing

This concept is designed to help managers differentiate between tactical and strategic purchasing. It reviews both types of purchasing and explores how they can be aligned with organisational strategy.

Technique Overview

Tactical vs. Strategic Purchasing Definition

Strategic purchasing is the process of "planning, implementing, evaluating, and controlling strategic and operating purchasing decisions for directing all activities of the purchasing function toward opportunities consistent with the firm's capabilities to achieve its long-term goals" (Carr and Smeltzer, 1997). Tactical purchasing is typically a subset of activities and processes within the strategic purchasing approach. It focuses on operational purchasing requirements based on information from a limited environmental scan (Lysons and Farrington, 2006).

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Business Evidence

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Further Reading

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Tactical vs. Strategic Purchasing References (4 of up to 20) *

  • Aberdeen Group (2010) Strategic sourcing: The 2010 guide to driving savings and procurement performance. [online] Available at: www.aberdeen.com/aberdeen-library/6305/RA-strategic-sourcing-savings-procurement.aspx [Accessed 18 November 2011].
  • Baily, P., Farmer, D., Jessop, D. and Jones, D. (2005) Purchasing principles and management, 9th ed. Pearson Education: Essex, UK.
  • Buck, C.R. (1993) General electric: Regional healthcare management. In P.Boland, ed. Making managed healthcare work. Aspen Publishers: Maryland, US.
  • Burnes, B. and Anastasiadis, A. (2003) Outsourcing: A public-private sector comparison. Supply Chain Management: An International Journal, Vol.8(4), pp.355-366.

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