What does stage 3 of the CIPS procurement cycle involve?

Stage 3 of the CIPS procurement cycle, which involves developing a strategy or plan, is critical for setting the groundwork for the subsequent stages of the procurement process. This stage typically follows the initial understanding of needs and market analysis.

In developing a strategy, procurement professionals assess various options for sourcing, consider available resources, and define their approach to the marketplace. This includes identifying the sourcing route, determining the procurement methods (whether competitive tendering, negotiation, etc.), and establishing key performance indicators (KPIs) to measure success.

Creating a well-defined strategy ensures that the procurement process aligns with the organization's overall goals and objectives, facilitating informed decision-making and ultimately leading to more effective supplier relationships and value for money. The strategy developed during this stage guides the actions that follow, such as supplier selection, issuing invitations to tender or requests for quotations, and managing supplier relationships.