deprocurement

Deprocurement is the intentional reduction or removal of procurement activities for specific goods or services within an organization. It involves pruning or discontinuing items that previously appeared in purchasing catalogs, contracts, or approved spend categories. The goal is to reduce total cost of ownership, simplify the supplier base, manage risk, or reallocate resources to higher-priority needs. Deprocurement is distinct from procurement, which focuses on obtaining goods and services; deprocurement is a corrective or optimization step aimed at refining the procurement portfolio.

The practice often follows spend analysis, category management, and supplier rationalization. Criteria for deprocurement may include low utilization, redundant functionality, high total cost, or strategic misalignment with core business processes. Implementation typically uses procurement technology such as catalogs, contracts, and workflows to remove items, require approvals for exceptions, and communicate changes to stakeholders. Common contexts include IT software licenses, office supplies, non-core services, or travel spending.

Risks include disruption to operations if essential items are inadvertently removed, shadow buying or maverick purchasing, compliance and governance challenges, and potential supplier impact. Effective governance, clear policy, stakeholder engagement, and change management are essential to mitigate these risks.

Expected benefits include lower administrative overhead, reduced procurement cycle times, volume leverage with remaining suppliers, and alignment of spend with strategic priorities. Metrics may track realized savings, reduction in active catalog items or suppliers, catalog utilization, and maverick spend reduction.