Procurement Planning: From Weak Link to Strategic Advantage

Procurement Planning

Procurement functions across Australia have come a long way. Processes are more robust, governance frameworks are in place, and contract management is increasingly professionalised. But when it comes to planning, many organisations are still flying blind.

At Grosvenor, we’ve spent years researching procurement maturity. Our current study which you can still participate in, focuses on one of the most overlooked areas: how organisations plan for their procurements. And the early findings are clear. Planning is often reactive, fragmented, or treated as a compliance exercise rather than a strategic tool.

This matters. Without effective planning, procurement teams are left responding to urgent needs rather than shaping outcomes. Strategic alignment suffers, risks increase, and opportunities to innovate or deliver better value are missed.

So what does good procurement planning actually look like?

Here are some of the elements we assess in our survey:

Strategic alignment: Is your procurement plan linked to organisational objectives and used to guide decision-making?
Governance: Are there clear frameworks, systems and accountabilities in place to support planning?
Risk management: Do you have comprehensive strategies for identifying and mitigating procurement risks?
Stakeholder engagement: Are business areas and subject matter experts involved throughout the planning process?
Market engagement: Are suppliers used to inform planning and category strategies? Are they leveraged for innovation?

These aren’t just nice-to-haves. They’re the building blocks of a mature procurement function – one that can anticipate needs, manage risks, and deliver value consistently.

Our survey is designed to help you assess where your organisation stands. You’ll get immediate insights into your strengths and areas for improvement, and a clearer picture of what good planning looks like in practice. It’s quick to complete and provides a benchmark report comparing your responses to hundreds of other organisations, immediately after completion and it’s completely free.

This is also a chance to reflect, learn, and improve. Whether you’re a seasoned procurement professional or new to the role, understanding your planning maturity is your first step towards building a more strategic, resilient procurement function.

And if you have any questions, feel free to reach out to contactus@targetedbrains.com

What is procurement planning and why is it important?

Procurement planning is the process of forecasting, structuring, coordinating and scheduling acquisition activities so that organisational objectives are met efficiently. It is critical because it shifts procurement from reactive, fragmented buying to strategic alignment, risk mitigation and value delivery.

How does procurement planning differ from procurement execution?

Procurement planning sits upstream — it involves defining what, when and how purchases should occur, whereas procurement execution is the operational act of placing orders, managing suppliers, and contract performance. Good planning guides execution.

What are the key stages of effective procurement planning?

Typical stages include: needs assessment, market analysis, strategy alignment (category strategies), risk assessment, stakeholder engagement, scheduling and governance, and performance measurement.

What challenges do organisations face in procurement planning?

Common challenges include lack of strategic alignment, fragmented or siloed processes, poor supplier or market insight, weak stakeholder engagement, insufficient risk management, and underinvestment in tools or capabilities.

How can procurement planning deliver cost savings or value beyond price?

Through early market engagement (innovation, supplier ideas), bundling and aggregation of demand, improved contract terms, risk mitigation, and aligning procurement decisions with organisational strategy.

What is the role of risk management in procurement planning?

Risk management ensures that potential supplier, market or operational risks are identified early and mitigated (e.g. via contingency suppliers, contract clauses, buffer stocks). It helps avoid cost overruns, supply disruptions or compliance issues.

How should stakeholders be involved in procurement planning?

Key business units, subject matter experts, finance, end-users and technical specialists should be engaged early. Their input helps shape requirements, avoids surprises, and increases buy-in and alignment.

What tools or capabilities support more mature procurement planning?

Useful tools and capabilities include spend analytics, demand forecasting, supplier segmentation, scenario modelling, eProcurement systems, contract repositories, and dashboards to monitor plan vs. actuals.

How often should we review or update a procurement plan?

A procurement plan should be reviewed periodically (e.g. quarterly or semiannually) and updated when major changes arise (budgets, strategic priorities, market shifts). Flexibility is key, but regular check-ins maintain relevance.

How can an organisation assess its procurement planning maturity?

A maturity assessment considers factors such as strategic linkage, governance, risk practices, stakeholder integration, market engagement, capability and performance tracking. Benchmarking against peers can help identify gaps and improvement opportunities.