Strategic Versus Transactional Procurement
Explanation of the Differences
In Chapter 1, it was explained that purchasing is transactional and procurement is strategic. So, what does this really mean, and what are the main differences between the two styles of obtaining goods and services?
In basic terms, the transactional process is one that is reactive and linked mainly to price and lead time, while strategic procurement includes all elements associated to the product or service, ensuring that the process is aligned with the organization to deliver or add value.
Value is not just obtaining the best price. Classically, value has been broken down into four areas:
1. Functional value
2. Monetary value
3. Social value
4. Psychological ...
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