Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
IT Hardware Procurement — Definition, Process + Examples
Table of contents
- What is IT Hardware Procurement?
- The 7 Steps in IT Hardware Procurement
- 6 Common Challenges in IT Hardware Procurement
- 5 Best Practices for IT Hardware Procurement
- Real-World Examples of IT Hardware Procurement in Practice
- Why IT Hardware Procurement is Important
- Conclusion
- Frequently asked questions
- IT Hardware procurement is the process of planning, sourcing, purchasing, deploying, and managing physical IT and operational equipment such as laptops, servers, monitors, networking devices, and peripherals.
- Effective IT hardware procurement helps organizations control costs, reduce operational risks, and avoid disruptions caused by outdated or unavailable equipment.
- Beyond purchasing, IT hardware procurement includes vendor selection, lifecycle management, warranty handling, asset tracking, and replacement planning.
What is IT Hardware Procurement?
IT Hardware procurement is the process of planning, sourcing, purchasing, and managing physical equipment that organizations need to operate. This includes devices such as laptops, desktops, servers, monitors, networking equipment, and other peripherals used by employees and IT teams.
The goal of IT hardware procurement is to ensure the right equipment is available at the right time, in the right quantity, and at the right cost. Instead of ad hoc buying, it creates structure, control, and visibility across the organization.
Importantly, IT hardware procurement goes beyond purchasing. It also covers asset tracking, warranty, and lifecycle management, upgrades, and replacements. When done properly, it helps reduce costs, avoid disruptions, and ensure employees have reliable and secure tools to do their work.
The 7 Steps in IT Hardware Procurement
IT hardware procurement follows a structured process that helps organizations acquire the right equipment while balancing cost, performance, security, and operational risk.
1. Sourcing methodology
This step defines what hardware is needed and why. Procurement works with IT and business teams to translate operational needs into clear hardware requirements. This includes device type, technical specifications, performance standards, security requirements, expected quantities, budget range, and delivery timelines. Policies around standardization, sustainability, or approved vendors are also set at this stage.
This step also clarifies decision ownership. IT, procurement, finance, and end users need to align before suppliers are contacted.
Example:
A company plans to onboard 50 new employees and defines a standard laptop model with specific RAM, storage, security features, a target price per unit, and delivery within three weeks. Standardization is chosen to simplify IT support and reduce security risks.
2. Market research
Once requirements are clear, procurement searches the hardware market to understand available brands, suppliers, price ranges, lead times, and risks such as supply shortages or end-of-life products. Market research helps validate whether requirements are realistic and identifies alternative options if constraints exist.
Example:
Research shows that the preferred laptop model has long lead times, while an equivalent model from another brand is available immediately at a similar price. The team adjusts the requirement to avoid onboarding delays.
3. Request for Information (RFI)
An RFI is used to assess supplier capabilities before discussing pricing. In IT hardware procurement, this includes product availability, technical support, warranty terms, lifecycle services, delivery coverage, and experience with similar clients.
The goal is to reduce the supplier list to those who can reliably meet technical and operational requirements.
Example:
An RFI is sent to six hardware vendors. Four confirm stock availability, next business day delivery, and local support. These four are shortlisted for the next phase.
4. Request for Quotation (RFQ)
The RFQ focuses on commercial terms. Shortlisted suppliers submit pricing, volume discounts, delivery times, warranty options, and payment terms. Offers are compared to understand trade-offs between cost, speed, and service levels.
Example:
Two suppliers offer similar prices, but one includes an extended warranty and faster replacement service. The team selects this supplier to reduce downtime risk.
5. Negotiation phase
Negotiation goes beyond unit price. It may include discussions on volume discounts, delivery guarantees, service level agreements, replacement timelines, and future pricing protection. The objective is to balance cost savings with reliability and support.
Example:
Procurement negotiates fixed pricing for the next 12 months and faster replacement times for critical devices. This reduces budget uncertainty and operational risk.
6. Contracting phase
Once a supplier is selected, terms are formalized through contracts or framework agreements. These documents define hardware specifications, delivery conditions, support responsibilities, warranty coverage, and escalation procedures. Clear contracts reduce misunderstandings and protect the organization.
Example:
The contract specifies response times for hardware failures, replacement obligations, and penalties for missed delivery dates.
7. Supplier Relationship Management (SRM)
After purchasing, supplier management continues. Performance is monitored through delivery reliability, device quality, support responsiveness, and issue resolution. Strong suppliers are developed into long-term partners to support future hardware needs.
Example:
After consistent performance, the supplier is involved early in planning next year’s hardware refresh. This improves forecasting, secures availability, and strengthens collaboration.
6 Common Challenges in IT Hardware Procurement
Below are the most common challenges organizations face in hardware procurement, along with a brief explanation of who is affected and practical ways to address each issue.
5 Best Practices for IT Hardware Procurement
Below are the key best practices, explained step by step, with a clear focus on how to implement them in practice.
1. Standardize hardware models and specifications
Start by defining a limited set of approved devices and configurations together with IT. This means agreeing on standard laptop models, memory and storage ranges, operating systems, and security requirements for different user roles.
Implementation begins by documenting these standards and making them the default option in purchasing systems and requests. As a result, procurement gains better pricing leverage, IT support becomes easier, and users receive consistent and reliable equipment.
2. Align procurement closely with IT and business teams
IT Hardware procurement should never operate in isolation. To implement this, involve IT and key business stakeholders early when defining requirements or planning refresh cycles.
Regular check-ins and shared approval steps ensure that technical, security, and operational needs are aligned before suppliers are contacted. This approach reduces rework and prevents the purchase of unsuitable or unsupported devices.
3. Plan demand and refresh cycles in advance
Proactive planning is essential for avoiding last-minute purchases and supply shortages. Implementation starts by mapping expected onboarding, device lifecycles, and replacement timelines at least several months ahead.
By combining HR forecasts, IT lifecycle data, and procurement planning, organizations reduce lead-time risks and gain access to better pricing through planned orders instead of urgent buys.
4. Work with a controlled set of reliable suppliers
Rather than sourcing hardware from many vendors, procurement should focus on a small number of approved suppliers. This is implemented by running RFIs and RFQs to evaluate reliability, support capabilities, and delivery performance, then formalizing relationships through framework agreements.
Over time, this leads to better service levels, faster issue resolution, and more predictable outcomes.
5. Build asset and lifecycle management into the process
IT hardware procurement does not end at purchase. To implement lifecycle management, each device should be registered at delivery, assigned to a user, and tracked through use, maintenance, and replacement.
This creates visibility into where assets are, how long they are used, and when they should be refreshed, which reduces waste, improves security, and supports better budgeting.
When these practices are implemented as part of a structured process, IT hardware procurement becomes predictable and scalable, supporting both daily operations and long-term business needs.
Real-World Examples of IT Hardware Procurement in Practice
1. Danfoss
Danfoss, a global engineering and manufacturing company operating in more than 100 countries, provides a strong and quantifiable example of how structured IT hardware procurement can deliver measurable cost and efficiency gains.
Beyond direct cost savings, the centralized IT hardware procurement model delivered additional operational benefits. Danfoss saved thousands of hours previously spent on manual purchasing activities, gained real-time visibility into spending patterns through data visualization and reporting, and automated large parts of the procurement workflow through ERP and Ariba integration.
The company also benefited from a reduced carbon footprint due to shorter delivery distances and gained the ability to roll out IT hardware procurement in new countries within days instead of weeks or months. This case clearly demonstrates that IT hardware procurement, when managed as a structured and centralized process, drives not only cost efficiency but also speed, transparency, scalability, and operational control across global organizations.
Danfoss managed an annual IT accessories spend of approximately €2 million across the EMEA region, sourcing from more than 130 suppliers. This highly fragmented setup resulted in inconsistent hardware standards, limited spend visibility, long delivery times, and significant administrative effort across procurement and IT teams.
To address these challenges, Danfoss launched a centralized IT hardware procurement consolidation project covering 24 countries. By reducing the supplier base from 130 suppliers to a single approved procurement platform, standardizing product catalogs, and consolidating purchasing volumes, Danfoss achieved a 15 percent reduction in IT purchasing costs.
At the same time, average delivery times were reduced by 90 percent, from 28 days to 2.75 days across 25 countries, significantly improving device availability and employee onboarding speed.
Beyond direct cost savings, the centralized IT hardware procurement model delivered additional operational benefits. Danfoss saved thousands of hours previously spent on manual purchasing activities, gained real-time visibility into spending patterns through data visualization and reporting, and automated large parts of the procurement workflow through ERP and Ariba integration.
The company also benefited from a reduced carbon footprint due to shorter delivery distances and gained the ability to roll out IT hardware procurement in new countries within days instead of weeks or months.
2. SEB Bank
SEB Bank, one of the largest financial institutions in the Nordic region, offers a detailed and long-term example of how centralized IT hardware procurement can generate sustained financial, operational, and governance benefits in a highly regulated environment. SEB has been working on optimizing its IT hardware procurement since 2004, managing an annual spend of approximately EUR 6.5 million across more than 6,000 IT hardware and accessory product lines in the Baltic region.
Before centralization, this level of complexity made it difficult to maintain spending transparency, purchasing consistency, and process efficiency across countries and departments.
By implementing a centralized IT hardware procurement model through a single procurement platform for the Baltics, SEB consolidated demand, standardized approved device configurations, and negotiated special vendor pricing for high-volume hardware categories and brands.
As documented in the Markit success story, this approach delivered average savings of approximately 9 percent on IT hardware product prices between 2013 and 2018, while significantly improving cost transparency through customized and highly configurable spend and savings reports
Beyond direct cost savings, SEB achieved substantial operational improvements through its IT hardware procurement transformation. The centralized model enabled buffer stocking for specially configured hardware, allowing the majority of orders to be delivered within one to two days, compared to the much longer lead times associated with decentralized purchasing. Hardware returns and replacements were also streamlined, with RMA cases handled in an average of eight days, thereby reducing downtime for end-users and pressure on IT support teams.
High levels of automation further reduced the time spent on purchasing activities, allowing procurement and IT teams to focus more on strategic planning and supplier collaboration.
In addition, centralized IT hardware procurement strengthened governance and compliance across the organization. SEB gained clearer visibility into supplier pricing, improved purchasing compliance through defined processes, and enhanced control through periodic credit limit reviews and user role management.
Why IT Hardware Procurement is Important
IT hardware procurement ensures employees have the right equipment to work efficiently and without interruptions. When devices are unavailable, outdated, or inconsistent, productivity and operations suffer.
A structured procurement process helps control costs by reducing ad hoc purchases, improving supplier negotiations, and supporting better budget planning. It also strengthens security and compliance by ensuring only approved and standardized hardware is used.
Finally, effective IT hardware procurement supports business growth by making it easier to equip new employees, scale operations, and adapt to changing technology needs.
Conclusion
IT Hardware procurement is a foundational procurement activity that directly supports productivity, cost control, and operational stability. When managed in a structured way, it ensures employees have reliable equipment, IT teams can maintain security and support standards, and organizations avoid unnecessary spending and disruptions.
As shown throughout this article, effective IT hardware procurement goes far beyond purchasing devices. It involves clear requirement definition, market research, supplier evaluation, negotiation, contracting, and ongoing supplier relationship management. Addressing common challenges such as unclear requirements, decentralized buying, and lack of asset visibility allows procurement teams to move from reactive purchasing to a predictable and scalable process.
Frequentlyasked questions
What is IT hardware procurement?
IT hardware procurement is the process of planning, sourcing, purchasing, deploying, and managing physical IT and operational equipment such as laptops, desktops, servers, monitors, networking devices, and peripherals. It ensures organizations have the right equipment available at the right time and cost, while maintaining control, standardization, and visibility.
What are the most common challenges in IT hardware procurement?
Common challenges include unclear hardware requirements, decentralized purchasing, long lead times, lack of asset visibility, poor supplier performance, and weak lifecycle planning. These issues can lead to higher costs, operational disruptions, and security risks if not managed properly.
Who is typically involved in the IT hardware procurement process?
IT hardware procurement usually involves procurement, IT, finance, and business stakeholders. Procurement manages the process and suppliers, IT defines technical and security requirements, finance supports budgeting and approvals, and business teams define user needs.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.
