Procurement function in manufacturing organisations has played significantly more critical
roles nowadays than in the past. The contribution of procurement function is much determined by
how well the procurement management system is designed. A critical aspect of managing
procurement function in order to optimise its contribution to the organisation is procurement
portfolio, i.e., categorisation of items and then differentiation of procurement focus for different
categories. This paper will discuss procurement portfolio as a basis for procurement manager to
optimise the contribution of his/her function in supporting the organisation?s objectives. The role
of electronic procurement in each category of the portfolio will also be discussed.