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Innovative Article | Procurement and Supply Chain Management | Volume 15 Issue 7, July 2026 | Pages: 2438 - 2440 | United States
Procurement Forecasting & Cost Reduction: A Framework for Strategic Value
Abstract: In an era of market volatility and geopolitical uncertainty, traditional Enterprise Resource Planning (ERP) engines succeed at predicting demand volume but often fail to isolate and control shifting cost drivers. This white paper introduces a structured Procurement Forecasting and Cost Reduction (PFCR) framework designed to bridge the gap between demand forecasting and granular cost management. By decoupling raw material (metal) market fluctuations from core fabrication costs, establishing lightweight Bills of Materials (BOMs) for key items, and standardizing dual-perspective tracking between internal metrics and supplier breakdowns, organizations can transform procurement from a reactive administrative function into a proactive driver of value. The proposed methodology provides supply chain leadership with a scalable blueprint for accurate financial forecasting, streamlined Value Analysis/Value Engineering (VAVE) collaboration, and sustainable procurement cost optimization.
Keywords: Procurement Forecasting, Cost Reduction Framework, Total Cost of Ownership (TCO), Bill of Materials (BOM), Value Analysis and Value Engineering (VAVE), Supplier Cost Structure, Raw Material Volatility, Demand Planning, ERP Integration, Fabrication Cost Management
How to Cite?: Sukhvinder Singh, "Procurement Forecasting & Cost Reduction: A Framework for Strategic Value", Volume 15 Issue 7, July 2026, International Journal of Science and Research (IJSR), Pages: 2438-2440, https://www.ijsr.net/getabstract.php?paperid=SR26725210949, DOI: https://dx.doi.org/10.21275/SR26725210949