Why Now?
Most companies approve next year's budget between October and December. If the procurement plan is not built alongside the budget, urgent and expensive purchases become unavoidable during the year. A good plan, on the other hand, means a stronger negotiating position and predictable costs.
1. Analyse This Year's Spend
- Group all purchases by category: consumables, equipment, services, IT, HSE
- Identify the largest spend categories and the suppliers you buy from most
- Measure the share of urgent (unplanned) purchases — a good indicator of planning quality
2. Prioritise Categories
Simple tools such as the Kraljic matrix split categories into four groups by spend impact and supply risk: strategic, leverage, bottleneck and routine. Long-term partnerships and backup suppliers work best for strategic and bottleneck items, while competitive tenders are more effective for leverage items.
3. Forecast Demand and Lead Times
- Factor in project schedules, planned maintenance and seasonal needs
- Flag long-lead items (specialised equipment, imported goods) and schedule orders early
- Build a contingency into the budget for currency and price volatility
4. Renew Framework Agreements
For regularly purchased items, annual framework agreements provide fixed pricing, short ordering cycles and less administrative effort. Check when existing agreements expire and start renewal negotiations in good time.
Planning with Supply Base Azerbaijan
Supply Base Azerbaijan helps you build your 2027 procurement plan, benchmark market prices and find reliable suppliers for framework agreements. Get in touch.
