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Procurement planning is ensuring that you buy at the right time (allowing for lead times), at the right quantity (demand driven - no excess), at the right price (either contract, MOU or 3 quotes)
It is important to the company due to cash flow( too early means funds tied up in inventory or equipmemnts 'parked up'; too late - could see the demand 'dry up' meaning it will cost to return or warehouse the product. If the items are perishable in nature, it may mean the write off of goods and an ungappy GM, CFO). It could also mean that the purchase is for production (too early - where to store it and at what cost? Too late, can't produce anything, workers not working and nothing to sell. Again, an unhappy GM,CFO)
Procurement planning is process of deciding what, when and how to do the job. It helps the company get the job done with a minimal usage of resource
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