What is a procurement plan?

A project procurement plan records and describes the purchases made from suppliers that are necessary for the completion of the project to create a budget and a proper plan. A procurement plan typically includes the project requirements, the procurement team, the justification for the procurement, a time line and an explanation of the supplier selection process.

A good procurement plan also outlines specific actions to start and complete purchases; this ensures that bids are fair and made in the best interest of the company. A procurement plan should also be reviewed regularly, as changes to supplier terms and other market factors may have an impact the plan.