In procurement, strategic, tactical and operational functions can be separated.
It is clear that in procurement one should strive to forecast, so that the business wouldn’t be ”putting out fires” reacting to problems only when they reveal. However, not many organizations have purely proactive or reactive procurement, and the nature of functions may vary, for example, by product group or business unit.
Strategic procurement include among other things business planning and development, development of buyer – supplier relationships, forecasts as well as selection and evaluation of suppliers. Strategic procurement described essentially as proactive or proactivity. Proactive procurement is based on value creation, so that in contrast to reactive purchasing, for example, stocks and amount of suppliers are aimed to be reduced.
The importance of information flow is emphasized and an early access to information enables to control business, its development in a long-term and at the same time good risk management.
Tactical procurement include budgeting and contract negotiations.
Operational purchasing, in turn, contains everyday routines such as ordering, verification of invoices and delivery control. Operational purchasing is a reactive or responsive and it highlights purchase prices and costs. Company implementing reactive purchasing does not want to reduce the amount of stored products or suppliers because it sees them as a means of risk management.
It is important that buyers know market so that when needed, they know to market themselves from their point of view as customers to the best suppliers and cooperation partners. This is called reverse marketing.