What is the difference between strategic procurement, tactical procurement and operational procurement?

Strategic procurement is the long term procurement which generally governement organization or large enterprise do whereas tactical procurement is the short term procurement. Operational procurmeent is the procurement to ensure / fulfil daily operational needs

1.Strategic procurement is a systematic, long term and holistic approach to acquiring current & future needs of an organization.

2. Tactical procurement on the other hand is a short term, transactional activity, commonly practiced in small to medium size manufacturing organizations.

3.Operational Procurement deals with meeting the daily purchasing needs of organization.

Strategic procurement: Long-term procurement that ensures timely supply of goods and services that is critical to an organisation ability to meet its core business objectives. It is proactive in nature and focused on adding value over a long-term. It is a cyclical, holistic approach that looks beyond simple cost-saving measures. It also, includes framework agreements, the development of category strategies and the monitoring of suppliers' performance.

Tactical procurement:  deals with the short term needs or one-off procurement of goods and services. In carrying out tactical procurement, the buying organisation must first identify the goods and service to be procured and determined the supplier, manufacturers or OEM, with an acceptable prospect of being able to deliver the goods and services satisfactorily in all aspects with respect to quality, timeliness and at the lowest cost.

Operational procurement: is the procurement of goods and services that are generally required to sustain daily production or business activities. What some organisation does is to outsource those goods that are need on daily or weekly basis to reduce their inventory holding cost.  

According to my experience

1. Strategic- a objective of company which can >5 yrs like setting up factory

2. Tactical - between 1 to 5 yrs like buying a machine and installing in the factory

3. Operational - between 6 months to 1 year like getting raw materials to complete the production.

Its a overview, but we can easily relate with procurement activities.

Strategic sourcing is a systematic, long term and holistic approach to acquiring current & future needs of an organization at the lowest total cost of ownership (TCO) and lowest risk to the supply line. Tactical sourcing on the other hand is a short term, transactional activity, commonly practiced in small to medium size manufacturing organizations. Operational procurement deals with meeting the daily purchasing needs of the organization. It involves buying goods and services for an organization, managing deliveries and contracts, and dealing with any complaints.

Strategic Planning: Refers to the process through which an organization defines its strategy, allocate its resource and lead the direction that the company will follow to achieve its goals.

Tactical Planning: Refers to the process of taking the strategic plan and divided into specific activities, short term actions and plans to achieve the planned objectives.

Operations Planning: Refers to the action plan for the day-to-day functioning of an organization. It defines the short term methods to achieve the strategic objectives set while strategic planning is done. In other words, Operation planning allows the company to determine how to do it.

current reactive and simplistic approaches to purchasing and supply management,and will cover total year budget.

Strategic sourcing is a systematic, long term and holistic approach to acquiring current & future needs of an organization at the lowest total cost of ownership (TCO) and lowest risk to the supply line. 

Operational procurement mostly encompasses administrative items.  These items are generally needed to sustain everyday business operations

Tactical sourcing on the other hand is a short term, transactional activity, commonly practiced in small to medium size manufacturing organizations. Tactical sourcing takes a routine and sometimes reactive approach to purchasing materials & supplies using quick quote & order processes to support the production operations. It is however, pro-actively managed within the purchasing organization to ensure the organization has the right material at the right price and right time

Strategic Proc, this procurement process  will keep in line supply of core items of any industry, like raw material, production tools and consumables in bulk,

Tactical Proc. this just to procure for specific job / project which is not part of daily procurement, like new building, or set of new production machine etc.

Operational Proc. is to keep continue operation process without any delay or failure, like daily safety, maintenance, etc

Hello,

The difference between strategic procurement, tactical procurement and operational procurement are as follow:

Strategic procurement:

• Long-term procurement that ensures timely supply of goods and services that is critical to an organisation ability to meet its core business objectives.
• It is proactive in nature and focused on adding value over a long-term.
• It is a cyclical, holistic approach that looks beyond simple cost-saving measures.
• It also, includes framework agreements, the development of category strategies and the monitoring of suppliers' performance.

Tactical procurement:

• Deals with the short term needs or one-off procurement of goods and services.
• In carrying out tactical procurement, the buying organisation must first identify the goods and service to be procured and determined the supplier, manufacturers or OEM, with an acceptable prospect of being able to deliver the goods and services satisfactorily in all aspects with respect to quality, timeliness and at the lowest cost.
• This type of sourcing is most commonly found within manufacturing companies that are small to medium in size.
• Another area where tactical sourcing significantly differs from strategic is there’s no emphasis placed on understanding a company’s overall requirements. The same goes for really digging into what a vendor is capable of doing in terms of helping a company.
• Instead, most of the quick quote and order processes used in tactical sourcing are focused on providing production operations with the support it requires.

Operational procurement:

• It is the procurement of goods and services that are generally required to sustain daily production or business activities.
• What some organisation does is to outsource those goods that are need on daily or weekly basis to reduce their inventory holding cost.
• Operational procurement is not the same as tactical purchasing, which is focused on short-term transactional activity.
• The routine approach takes a reactive stance in regards to purchasing materials and supplies.
• It relies on using fast quote and order processes so that production can continue to run smoothly.

If you are wondering where to begin this journey? Then you should check the procurement professional certification online here.

I will recommend the best certified procurement professional certification.

As I have one reference for a certified procurement professional course I found one course on google they provide a certificate course . The CPP certification courses cost is also affordable here.

The GSDC certification bodies provide certified procurement professional certification online and it is valid and accepted globally.

GSDC's procurement certification is aimed towards sharing a deep understanding of all the basic procurement professional certification .

The purpose of GSDC procurement certification qualification is to confirm that a candidate has sufficient knowledge and understanding of the benefits of procurement professional certification.

Operational procurement deals with meeting the daily purchasing needs of the organization. It involves buying goods and services for an organization, managing deliveries and contracts, and dealing with any complaints. Tactical procurement is focused on making sure the organization has the goods and services it needs and they arrive at the right time and place for the right price. However, it is still generally focused on short-term needs and is transactional in nature. Strategic sourcing, on the other hand, is concerned with the overarching organization goals and objectives. Strategic sourcing practices are proactive in nature and are focused on providing value over the long term. It is a cyclical, holistic approach that looks beyond simple cost-saving measures.