What is "procurement planning" primarily focused on?

Procurement planning is primarily involved in the strategic determination of contract needs and sourcing requirements. This process is crucial as it sets the foundation for how an organization will acquire goods and services necessary for its operations. By carefully analyzing the needs of the organization, procurement planning enables effective decision-making regarding which products and services to procure, the timing of procurement, and the selection of suppliers.

This strategic aspect ensures that the procurement process aligns with organizational goals and objectives, optimizes resources, and mitigates risks associated with procurement activities. Understanding the requirements in advance also helps in formulating appropriate procurement strategies, thus leading to more successful procurement outcomes.

The focus on assessing past procurement successes, ensuring legal compliance, or promoting vendor strategies, while important, does not capture the primary goal of procurement planning, which is about identifying and organizing current and future sourcing needs effectively.