Tip: Make Procurement Strategic, Not Tactical - Modern Distribution Management

Log In

Tip: Make Procurement Strategic, Not Tactical

Strategic procurement can have a significant positive impact on a distributor's top line.

Approaching procurement as a strategic function rather than tactical can have a significant positive effect on a distributor's top line, according to Jim Barnes, ISM Services managing director, in Industry 4.0: Technology-Driven Change.

When procurement is approached as a transactional process, by using a material requirements planning process or driven by purchase orders, it leaves little time for innovation and improvement, Barnes says. Instead, the focus is entirely on just getting things done.

But a strategic approach that includes Kanban and lean techniques to fulfill orders, for example, can have half the people of a plant owned by the same company using a tactical approach and still report higher sales, he says.

Doing this also allows distributors and manufacturers to become partners in innovation, bringing something truly new to the market and more value to the customer.

Read more about the benefits of adopting a strategic approach to procurement in Industry 4.0: Technology-Driven Change.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.