7 WAYS
PROCUREMENT
and SUPPLY
PLANNING
Work Together
SWIPE
Shared
Supply Plans
Supply planners provide supply plans
early, enabling procurement to anticipate
volume requirements for materials
Win: Better pricing
negotiations, reduced stockouts,
and fewer rushed orders
Joint Supplier
Evaluation
Both teams assess supplier performance
(lead times, quality, flexibility)
Win: A unified view of supplier
capabilities helps avoid capacity
bottlenecks or late deliveries
Collaborative
Lead-Time Optimization
Procurement negotiates shorter or more
reliable lead times; supply planners adjust
inventory policies to capitalize on them
Win: Less buffer stock
needed, freeing up working
capital and warehouse space
Data-Driven
Reorder Policies
Supply planners set reorder points and
safety stock; procurement factors in
supplier constraints and MOQs (Minimum
Order Quantities)
Win: Balanced inventory
that prevents both
overstock and stockouts
Building
Scenarios
When forecasts change or supplier disruptions
appear, procurement and supply planners run
“what-if” analyses together to evaluate
alternative sourcing or shipping options
Win: Agility considering
sudden demand spikes or
supplier setbacks
Brainstorming
Cost-Benefit
Trade-Offs
Procurement highlights price breaks for bulk
purchases; supply planning weighs the
carrying cost of extra inventory
Win: Decisions reflect both cost
efficiency and operational
realities, avoiding unintended
supply chain issues
Driving
Improvement
Cycles
Both teams regularly review supplier
scorecards, forecast accuracy, and
inventory health to refine strategies
Win: Continuous improvement
culture, including better supplier
relationships, leaner inventory,
and higher service levels
M a r c i a W i l l i a m s
JOIN MY FREE NEWSLETTER. (LINK IN BIO)
