Although purchasing will form part of the short-term plan as represented by theannual budget, it is still important to develop the long-term view. The long-termstrategic plan for purchasing provides a framework within which operationaldecisions can be made. Recognition of longer term implications of today’sdecision should prevent the long-term supply position of the company from being put in jeopardy. In this chapter, it will be useful to identify the basic stagesinvolved in the development of a strategic plan for purchasing.