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M22408 Strategic Procurement Strategies for Business Success

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Introduction - Optimizing Strategic Management Through Effective Procurement

Strategic management is the ultimate process of ongoing monitoring, planning, analysis and assessment of all requirements a business desires to convene its aim and objectives. Any kind of internal or external changes in the business atmosphere will involve organisations to continually consider their strategies in terms of success. Therefore, the strategic management process will assist the company to mitigate the problems which come from the changes in the organisations (Mullins and McLean, 2019). On the other hand, general management also refers to activities similar to strategic management.

This report aims to discuss how procurement strategies help in the decision-making and future achievement of a company. I will also discuss the constraints that come within these strategies and ways to overcome them.

Brief Understanding of the Strategic Management procedure

Strategic procurement is also considered as an ultimate means of strategic sourcing. It basically refers to a long-range plan in order to make certain of the facts of delivering services and goods within proper time. In fact, these procedures are indeed essential to an organisation’s capability to convene its core objectives (Eriksson et al., 2019). This procedure has become very much important for strategic management due to the fact that it helps a company to discover reliable suppliers. In fact, the suppliers who offer services and goods at a comparatively low price are considered extremely helpful for the company to convene its budget (Tarus and Ndeto, 2021).

The selection of an appropriate supplier also allows the business to waste its valuable time rather than focusing on another significant task. On the other hand, it has been observed that procurement procedure affects numerous business functions. This necessitates mastery of supply chain management, assembling purchasing goals and sourcing raw materials. Regarding this fact, procurement professionals consist of exceedingly high demand in the marketplace (Tarus and Ndeto, 2021). It has also been observed that several companies even comprise a complete procurement department directed by a chief procurement officer. Through the implementation of a well-built procurement strategy, accompany or firm will be able to exploit its value contribution.

Evaluation of the Company Information and prepare Informed Decisions Concerning the Future achievement of the Company

Morgan Sindall Group PLC is basically a construction and regeneration company in the UK. In fact, the business performances of the company have functioned through Property Services, Urban Regeneration and Investments segments, Construction & Infrastructure, Partnership Housing and Fit Out (Construction, 2022). The ultimate purpose of this construction company is to keep a close look at the well-recognized major strengths of the company as well as fulfill customers' requirements. The procurement strategy is extremely superior of this company. It has been observed that almost 80% of the entire spending of the company contributed to the supply chain. Therefore, the procurement strategy of Morgan Sindall Group PLC has a considerable impact on its business along with its business sustainability (Morgan Sindall, 2020). Moreover, they continue to engage and inform their suppliers on accountable business procedures such as cost competitiveness, responsible sourcing of goods & services and making certain the quality.

  • Reduced cost: On the other hand, procurement strategies also facilitate the company in various ways. The appliance of an appropriate procurement strategy will help the company to diminish costs (NetSuite.com, 2021). As a matter of fact, it provides improved visibility of the budget plan along with describing an idea to control additional costs. The effect of the reduced cost has been seen in the yearly profitability of Morgan Sindall Group PLC.
  • Greater efficiency: This also assists businesses to come across solutions to unpredicted circumstances including natural disasters, financial instability and labor shortage or surplus (Morgan Sindall, 2020). It has been able to help Morgan Sindall Group PLC to create better efficiency during the time of conducting any operation (NetSuite.com, 2021).

Development of a Critical Awareness of Management Constraints

The appliance of a successful procurement strategy helps organisations in various ways. However, there are some constraints that can come during the time of procurement and mitigation o these issues is extremely necessary for the company. It has been observed that a couple of years ago, Morgan Sindall also had to face a concern regarding this matter. The market was deafening and the company was balanced for expansion (Eriksson et al., 2019). At that time, the potential client prefers construction companies dependent exclusively on price. Regarding this fact, the company had to encounter a range of difficulties for this high cost. Therefore, the company countenance confront of coordinating inventiveness in terms of business-to-business surroundings. Somehow, the company managed to overcome the issues and earned competitive advantage.

The global pandemic COVID19 has created a major confront for Morgan Sindall on the starting of a new year and that includes the promotion of the company to the FTSE 250 Index. It has been observed that the company along with its stakeholders has to face major difficulties regarding the fact of pandemic (Vecchi, Cusumano and Boyer, 2020). However, the company carried out well during the time of these hard times and finished the year in a strong position.


These are the following recommendation for the company for the upcoming future:

  • The company needs to do the operation by choosing a safe path for the employees. Safe ways of working through maintaining social distancing might be able to help the company to mitigate the issues.
  • The company needs to focus on the market spread and geographical capability. It will help the company to measure the surroundings market as well as obtain knowledge.
  • The company should focus on technological innovation rather than appointing more human resources (Construction, 2022). It will facilitate Morgan Sindall to reduce its cost and keep an eye on the operational process. The implication of the machinery system might help the company in cost reduction as unlike employees it will not require payments.
  • The company must maintain with their procurement strategy of being selective, within margins, secured workload and contract terms the entire remaining constructive. In this way, the company will be able to mitigate issues regarding these problematic situations.


From the entire evaluation of the report, it can be concluded that strategic procurement is indeed a significant part of the strategic management of a particular company. By performing effectively activities that are associated with procurement, has facilitated companies to create a greater value for the competitive position. It is indeed a significant part of the project management and requires much monitoring and observation otherwise it will create a complex situation for the project manager.


Construction, M.S. 2022 Morgan Sindall Construction Supply Chain, construction subcontractors and suppliers. [online] Morgan Sindall Construction. Available at: https://www.morgansindallconstruction.com/supply-chain/ [Accessed 5 Jan. 2022].

Eriksson, P.E., Volker, L., Kadefors, A., Lingegård, S., Larsson, J. and Rosander, L., 2019. Collaborative procurement strategies for infrastructure projects: a multiple-case study. Proceedings of the Institution of Civil Engineers-Management, Procurement and Law172(5), pp.197-205.

 Morgan Sindall. 2020. Responsible Business. [online] Available at: https://morgansindallpropertyservices.com/who-we-are/responsible-business/. [Accessed 5 Jan. 2022].

Mullins, L., & McLean, J. E. 2019. Mullins : Organisational behaviour in the workplace. ProQuest Ebook Central https://ebookcentral.proquest.com [Accessed 5 Jan. 2022].

NetSuite.com 2021. Procurement & Profitability. [online] Oracle NetSuite. Available at: https://www.netsuite.com/portal/resource/articles/accounting/procurement.shtml. [Accessed 5 Jan. 2022].

Tarus, J. and Ndeto, C., 2021. EFFECT OF STRATEGIC PROCUREMENT ON THE PERFORMANCE OF PARASTATALS IN KENYA. International Research Journal of Business and Strategic Management2(2).

Vecchi, V., Cusumano, N. and Boyer, E.J., 2020. Medical supply acquisition in Italy and the United States in the era of COVID-19: The case for strategic procurement and public–private partnerships. The American Review of Public Administration50(6-7), pp.642-649.

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