Beschaffung

What is Procurement?

Procurement is the organized process through which a company obtains all external goods and services required for its operational activities. This includes raw materials, trade goods, packaging materials, operating supplies, and purchased services. In intralogistics, procurement plays a central role because it determines when and in what quantities goods arrive at the warehouse, directly influencing warehouse utilization, capital commitment, and delivery capability.

Conceptually, procurement is often equated with purchasing, but it is broader in scope: while purchasing primarily involves negotiating contracts and prices, procurement also encompasses strategic vendor development, supply chain risk management, and close coordination with demand planning and inventory management.

How Does Procurement Work in Practice?

A typical procurement process moves through several phases:

• Requirements identification: Based on sales forecasts, production plans, or minimum stock levels, actual requirements are determined in terms of quantity and timing.
• Vendor selection and development: Potential vendors are evaluated on the basis of price, quality, delivery reliability, and risk profile. Companies decide whether to work with a single vendor (single sourcing) or several in parallel (dual or multiple sourcing).
• Order placement and processing: Orders are triggered, delivery dates agreed upon, and order confirmations processed. Modern systems transmit advance shipping notifications (ASN) electronically to prepare for goods receipt.
• Goods receipt and quality inspection: Incoming goods are checked for quantity and quality and recorded in the warehouse management system.
• Invoice verification and vendor evaluation: After delivery, the invoice is reconciled and vendor performance is documented.

What Matters When Choosing a Procurement Strategy?

The right strategy depends on several factors that should be carefully weighed. A make-or-buy decision clarifies whether a service is performed in-house or purchased externally. For sourcing strategy, the risk profile of the material determines whether a single vendor is sufficient or whether redundancy is necessary. For critical components, a dual sourcing strategy is generally recommended, even though it entails higher administrative overhead.

Digitalization is noticeably transforming procurement processes: EDI integrations, tendering platforms, and automated order triggering based on inventory levels shorten lead times and reduce manual errors. At the same time, personal vendor relationships remain a factor that is difficult to automate and can be decisive, particularly in shortage situations.

Close alignment with demand planning and inventory management is also essential: procuring too early ties up capital and occupies warehouse space, while procuring too late jeopardizes delivery capability. The right balance is vendor- and industry-dependent and cannot be defined in a one-size-fits-all manner.