Creating a Procurement Plan: From Needs to Strategy

Why a procurement plan?

A good procurement plan is the foundation for every successful tender. It describes what the organization needs, what the market looks like, and which procurement strategy is most suitable.

Components

1. Needs assessment

Clearly define what the organization needs: what, why, when, how much, and who will use it. Describe needs functionally, not as specific products.

2. Market research

Explore available solutions, price levels, and potential suppliers through desk research, market consultation, supplier visits, and reference visits.

3. Risk analysis

Identify market, technical, financial, planning, and supplier risks with appropriate mitigation strategies.

4. Procurement strategy

Determine the procedure (open, restricted, dialogue, private), contract form (one-off or framework), lot division, and award criterion (MEAT, lowest price, or lifecycle costs).

5. Planning

Create a realistic timeline covering all milestones from plan approval to contract start. Allow at least 4-6 months for European procedures.