Strategic product group management is the central element for the strategic purchase. All relevant and crucial Processes of Purchasing will meet. At this point, it is extremely important to have the appropriate strategy and staff competency.

It is clear that the most important processes of the strategic purchase tasks are concentrating at this point and that the strategic purchase needs a high degree of competency. Apart from costs, the strategy for the product group management will focus on quality and innovations.

Key issues of a product group management are:

  • Improved performance of the complete supply chain
  • Creating transparency of the procured materials and services
  • Cost cutting with a focus on direct costs
  • Using know-how of the supplier management in negotiations
  • Product group management across divisions, functions and sites

The staff employed in the strategic purchase need to have a wide range of skills. The strategic purchase department manages and steers the complexity of the product group and the interaction with suppliers and internal interfaces.

The cross-functional cooperation is of utmost importance in the complete supply chain. The close cooperation between Purchasing and the involved functional divisions as Development, Quality, further consumers, Finance or Risk Management, will lead to an optimized result.


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