The 10 most popular procurement strategies

Procurement is one of the departments that can most strongly support corporate goals - or, in the worst case, also sabotage them. A strategy explicitly and implicitly determines numerous factors: which goals are at the forefront, how procurement processes operate, with which other departments procurement works together, and which tasks procurement takes on.

Buyers themselves also see the high status and the major contribution of the procurement department, according to the 2025 survey by Entero and BME "Procurement controlling in Germany 2025". In this regard, most companies define three criteria in their procurement strategy - across all industries. The highest priorities are:

•  Quality, 
• Total Cost of Ownership (TCO),
• price.

These three goals account for the clear majority of responses. However, efficiency, risk, and innovation are also important. Compared with 2023, risk is again mentioned significantly less often, which could possibly be due to the supply chains stabilizing again after the coronavirus period.

In order to be able to manage these criteria in a targeted manner, to further develop suppliers and the purchasing organization, it is important to collect the right key figures (KPI, Key Performance Indicator). Targeted improvement measures can then be derived from them.

Which purchasing strategies are the most important?

The study's top cross-industry strategies illustrate how companies are increasingly aligning their purchasing strategies toward efficiency, risk minimization, and long-term partnerships.

1. Product groups

Purchasing by product groups (product group strategy) continues to rank 1 among the surveyed companies. It combines different goods into groups, such as standard materials and strategic materials. Among other things, the product group strategy helps reduce the number of interfaces with suppliers.

=> Find out everything here about the purchasing strategy by product groups.

2. Framework agreements

The use of framework agreements was most frequently rated as very important across industries. This clearly shows the companies' interest in a long-term relationship with their suppliers, with certainty both in terms of price and in (production) planning. An important key figure here is, for example, the use of framework agreements. It shows the extent to which procurement volumes covered by framework agreements are in practice ordered via framework agreements.

=> Learn everything about framework agreements here.

3. Part sourcing

Part sourcing, also called unit sourcing, means that objects are procured as individual parts or as raw materials. The parts are only further processed in the company or go directly into the final product. The advantage here: The know-how remains with the company, but it has to coordinate many different suppliers. The significance of part sourcing has risen from 6th place to third place compared with the 2023 study.

4. Preferential sourcing

Many companies try, through preferential sourcing (preferred supplier strategy), to keep the number of their suppliers as low as possible. The most highly qualified suppliers, for example with regard to their quality or their price, are treated preferentially. They are gladly used for bottleneck parts (for A-materials) or receive certain procurement quotas.

5. Call-off contracts

A call-off contract is actually a special framework agreement. This sets out provisions for a demand-oriented call-off of materials from the supplier. It is agreed which goods will be purchased in which quantities. In many cases, however, no specific delivery date is fixed.

Learn everything about call-off contracts here.

6. Local sourcing / domestic sourcing

Local or domestic sourcing places particular emphasis on geographic proximity to the supplier. Strictly speaking, a distinction is still made between local and regional procurement. Potentially higher goods prices are compensated for by better quality, lower transport costs and a lower supply risk. The risk of long transport routes is also eliminated. The strategy is less popular than it was in 2023, dropping from 4th place to 6th place.

=> Learn everything about local sourcing here.

7. Dual sourcing

In dual sourcing, goods are sourced from two suppliers that are independent of each other. This usually happens in quotas, for example 60 % to 40 % . This combines the positive aspects of single sourcing with the advantages of multiple sourcing. The advantages here are, on the one hand, high discounts through the bundling of orders and, on the other hand, a lower risk of failure and less dependency.

Einkauf

The most important metrics and KPIs in procurement

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8. E-sourcing

E-sourcing, or E-procurement, uses digital solutions to increase efficiency in purchasing. Catalog systems are oriented toward well-known online mail-order retailers.

9. Lead buyer / category manager

A lead buyer concept refers to a "lead purchasing function" for a product or a product group defined in advance. It may be that the lead buyer is deployed within a (large and globally operating) company or even across company boundaries in purchasing cooperations. Therefore, lead buying is also considered a compromise between centralized and decentralized purchasing. The disadvantages: "purchasing kingdoms" arise, misjudgments by the lead buyer can have serious consequences, and transparency is also not always optimal.

10. Separation of direct and indirect purchasing

This purchasing strategy is new in the top 10.  In technical purchasing, a distinction is made between direct procurement (goods that flow directly into the final product) and indirect procurement (goods and services for ongoing business operations).

Which industry prefers which purchasing strategy?

Depending on the industry, some purchasing strategies are more popular than others. The survey revealed the following result: In three of the six industries considered in a differentiated manner, purchasing by product group represents the most important purchasing strategy -followed by part sourcing and framework agreements. Modular sourcing, system sourcing and low cost country sourcing have newly come into focus since the last survey in 2023 -especially in the electrical industry and the automotive sector.

Other purchasing strategies that are not listed in the top 10 of the most popular purchasing strategies:

Global sourcing

Global sourcing creates worldwide access to resources and products that are cheaper and/or cannot be found on the local market. When applying global sourcing, additional effort in coordination, planning and information about the markets is necessary. Often, a zone, such as Europe, is also counted under global procurement. For others, that already falls under regional procurement.

=> Learn everything here about the procurement strategy global sourcing.

Single sourcing

Single sourcing is understood to mean a procurement strategy in which a company deliberately selects only a single supplier for a specific product or service. Its aim is to reduce administrative costs through high purchase volumes and to take advantage of economies of scale.

Multiple sourcing

With multiple sourcing, also called multi sourcing, companies rely on a large number of suppliers for goods. This is usually due to a large need for raw materials or individual parts in manufacturing industry. The advantage: security of supply. The disadvantage: coordinating many suppliers.

=> Read everything about the procurement strategy multiple sourcing

Reshoring

Reshoring, the relocation of production facilities back home, is in demand. Since Corona, supply chains have been stretched to the breaking point - first came the lockdowns worldwide - with China in particular repeatedly blocking ports and production facilities with its zero-Covid strategy - and then the war in Ukraine. So the question naturally arises: Is production better placed in Europe, or at least in countries with non-autocratic systems? Where does it make sense? Where are the opportunities and where are the risks?

=>  Read the detailed article on this here.

Modular or system sourcing

With these strategies, a company relies on only a few suppliers. They supply complete modules or assemblies. These were either developed jointly (system sourcing) or by the supplier (modular sourcing). The terms modular and system are thus distinguished by the closeness of the collaboration. This relocation of development and production means a high dependency on the supplier. Often, this is also associated with a loss of know-how to the supplier.