In large and complex programs, procurement is often treated as a downstream activity. Design is completed, scope is defined, and procurement is expected to “source” what has already been decided.
In practice, this approach introduces risk rather than managing it.
Procurement strategy is a core delivery discipline. It shapes risk allocation, commercial incentives, schedule certainty and the organisation’s ability to respond to change. Where procurement is poorly integrated with program strategy, delivery outcomes are frequently compromised.
A common failure point is the assumption that procurement is primarily a compliance exercise. While probity and process are essential, they do not substitute for strategic decisions about packaging, sequencing, market engagement and supply chain readiness.
For infrastructure and capital programs, procurement decisions influence:
- The resilience of supply chains
- The feasibility of delivery schedules
- The manageability of interfaces and dependencies
- The allocation of cost, quality and performance risk
These considerations cannot be resolved after the fact. They must be addressed early, and in alignment with the overall delivery model.
Another recurring issue is limited visibility once procurement activity begins. Without clear traceability across design, manufacturing, transport and site delivery, organisations lose their ability to anticipate constraints or intervene early. This often results in reactive decision-making, cost escalation and schedule pressure.
Effective procurement strategies are characterised by:
- Clear alignment between program objectives and commercial models
- Early market engagement to test assumptions and constraints
- Deliberate packaging and sequencing decisions
- Transparent governance and decision rights
- Mechanisms to maintain visibility across the asset lifecycle
Importantly, procurement strategy is not static. It must be capable of adapting as conditions change, while remaining anchored to agreed principles and risk tolerances.
Organisations that treat procurement as an integral part of delivery, rather than a transactional step, are better positioned to manage complexity, protect value and achieve durable outcomes.