Project procurement management is a central function in project management that ensures that all necessary materials, services and resources are available on time, within budget, in accordance with the order (PO) and in the required quality.

To ensure that project goals are achieved effectively and efficiently, project procurement is not only an interface between internal demand centres and external suppliers, but also a strategic lever for optimising the cost structure and operational efficiency.

One of the key decisions in procurement management is whether to produce internally or purchase externally (make or buy). This decision influences not only the project costs, but also productivity, EBIT and ROI. Producing resources internally offers better control and higher quality, but is often capital-intensive and can limit flexibility.

External procurement, on the other hand, allows quick access to specialised knowledge and can help to minimise capital tie-up, but it carries the risk of dependencies. In the context of project revenue and return on capital, the effects of these decision options must be carefully analyzed and weighed in terms of productivity, resource availability, supplier reliability and strategic flexibility. Project procurement is therefore of strategic importance.

Procurement management is not only an operational but also a strategic function within project management and a decisive factor for success in securing competitive advantages and making projects sustainably successful. Chosing the right purchasing strategy has a direct influence on the productivity, profit and profitability of a project. A structured approach to planning, controlling and documenting the procurement process ensures that projects are implemented efficiently, cost-effectively and with high quality.

Sourcing is the strategic process of identifying, evaluating and selecting suppliers that offer the best value for the required goods or services. This involves building long-term supplier relationships that strengthen the sustainability, innovative strength and flexibility of the company. Potential suppliers are evaluated on the basis of criteria such as cost, quality, reliability and sustainability. Effective sourcing creates strong supplier relationships, ensures competitive prices and guarantees a steady supply of high-quality materials and plays a crucial role in project procurement management, as it contributes significantly to the effectiveness and efficiency of the entire procurement process.

The required goods and services must be delivered in the right quality, at the right cost and at the right time. A successful sourcing strategy ensures that risks are minimised, competitive advantages are gained and the value added within the project is maximised. The role of sourcing is thus closely linked to decisions such as ‘make or buy’ and the choice between vertical integration and supply chain management, since sourcing plays a decisive role in shaping the supplier landscape and thus the possibilities for procurement.

Procurement is responsible for the entire procurement process, including the many tasks and operational activities involved in purchasing and acquiring goods and services from suppliers. These range from requests for proposals (RfQ) and contract negotiations, to the commissioning and management of orders, monitoring of actual production and tracking of delivery processes, and the posting of goods receipts, to invoice verification and payment processing with suppliers from purchase to pay (PtP).

The execution, control and documentation of the procurement process are crucial to ensure that the contractual conditions are met and that the project remains on track in terms of time, costs and quality. Control includes monitoring supplier performance, ensuring that deliveries meet the contractual quality requirements based on the specifications, and managing changes. Seamless documentation is required to make the entire procurement process traceable, to record contract changes and to learn from successes and mistakes.

Expediting (from the Latin: ex pedis, meaning ‘removing obstacles’ or ‘speeding up’) is another important component of project procurement management. It ensures that all orders are placed and all deliveries are made on time and in accordance with project requirements. It also helps to manage lead times and minimise risks that could disrupt the supply chain, such as delayed deliveries or unexpected production problems. Together, sourcing, procurement and expediting provide a comprehensive framework that optimises supply chain efficiency, reduces costs and increases operational reliability, enabling companies to respond quickly to market demands and maintain their competitive advantage.

Expediting involves actively monitoring and tracking suppliers and deliveries to ensure that production processes are adhered to and agreed delivery dates are not exceeded, delays in the project schedule are avoided, bottlenecks are minimized and the required materials or services are in the right place at the right time.

A proactive expediting strategy enables companies to identify potential delivery problems at an early stage and take countermeasures. This is particularly important for complex projects with many dependent components, as delays can often have a significant impact on the entire project planning. Expediting is therefore crucial to ensuring that procurement management can successfully manage not only cost aspects but also schedules.