What are the three effective procurement strategies?

The three effective procurement strategies are
1.Volume Consolidation
2.Supplier Operational Integration
3.Value Management

Volume consolidation is a strategy that aims to reduce the number of suppliers. It allows the buyer to negotiate strongly with the supplier for business and it allows the supplier to obtain larger economies of scale in its internal processes.

Supplier Operational Integration aims to integrate buyers and seller’s processes and activities in an attempt to achieve substantial operational performance improvement in the supply chain. It aims to achieve cost reduction, better logistics, cut waste.

Value management takes the buyer-seller relationship to a more comprehensive level that involves reducing complexity, early supplier involvement in product design.

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