Evolving Procurement Strategies through Spend Management: A Case Study

The paper presents an approach to address the highly fragmented purchasing system by achieving synergy in the spending of a project based firm through strategic sourcing. The authors analysed current practices and deficiencies in procurement of the firm using spend data for the last three years. It was observed that the procurement has been majorly need based and highly fragmented; with a huge vendor base across the country. The paper puts across an approach through which the firms can achieve purchasing synergy, use standardization as a strategic tool and move from a transactional to a more collaborative relationship with the suppliers.