%201.svg){kind=small}
Latest posts
Download resources
Project procurement: definition & important aspects for buyers
.jpeg)
Project procurement in a nutshell:
Project procurement is the time-limited, demand-oriented procurement of goods and services for a specific project with defined objectives. It enables the purchasing department to select suppliers in a focused manner, draw up tailor-made contracts and optimize cost control for one-off or recurring project requirements.
Example: For an 18-month construction project, project purchasing coordinates the procurement of construction materials worth EUR 2.5 million, selects 15 specialist suppliers and ensures on-time availability through just-in-time deliveries while minimizing warehousing costs.
Contents
What is project procurement?
Project procurement refers to the targeted purchasing of goods, services and resources required for the implementation of a specific project. It encompasses all activities from determining requirements and selecting suppliers to drawing up and monitoring contracts. The aim of project procurement is to optimally fulfill the project requirements in terms of quality, costs and time frame and thus contribute to the overall success of the project.
Core elements of project procurement
Significance for purchasing
Project procurement plays a key role for purchasing, as it directly influences the success of projects. Through efficient project procurement, buyers can save costs, minimize risks and increase the quality of project results. It makes it possible to tailor procurement strategies to the specific requirements of a project and thus make an important contribution to the company's competitiveness.
Project procurement: From traditional procurement to agile procurement
Project procurement has changed fundamentally in recent years. Building on the theoretical basis that projects have unique and one-off requirements, procurement has become a strategic function. In practice, it is essential to provide all required resources in a timely and cost-efficient manner. Traditional methods often reach their limits, which is why a shift towards more agile approaches has become necessary.
Old: Traditional project procurement
Traditional approach: Traditional project procurement follows a linear and sequential process. After a detailed needs analysis, potential suppliers are sought, offers are obtained and contracts are negotiated. This process is time-consuming and heavily paper-based. Tools such as spreadsheets and e-mail communication dominate the day-to-day work. The main characteristics are long throughput times, low flexibility and a high administrative workload. Challenges arise in particular in the event of unforeseen changes to the project, as the rigid process hardly allows for any adjustments.
New: Agile Procurement
Agile procurement: The modern approach integrates agile methods into project procurement. Through iterative processes and close collaboration with all stakeholders, procurement is made more flexible and responsive. Digital platforms and AI-based tools automate routine tasks and enable real-time analyses. Innovation features include the use of cloud technologies, automated supplier selection using algorithms and the implementation of collaborative tools such as Kanban system boards. Practical benefits include shorter procurement cycles, increased transparency and better adaptability to changing project requirements. Procurement times can be reduced by up to 40% and costs cut by 15%.
Practical example: Agile procurement in the IT sector
A leading IT company was faced with the challenge of procuring hardware and software for a major project in a short space of time. By switching to Agile Procurement, the procurement process was significantly accelerated. Instead of months of invitations to tender, tenders were issued in two-week sessions.
Conclusion on project procurement
Project procurement is a complex but crucial process for the success of a project. Through structured planning, careful supplier selection and effective risk management, companies can achieve their project goals and optimize costs. The trend towards digitalization and agile methods will further transform project procurement and increase its strategic importance for companies. Successful implementation requires technical expertise as well as modern tools and clear processes.
