Effective procurement policy and strategy formulation are crucial to the success of any organization. This research paper aims to develop a framework for effective procurement policy and strategy formulation in the public and private sectors. The paper identifies best practices and models for procurement policy and strategy formulation, analyzes the challenges and issues in procurement policy and strategy implementation, and develops a framework for effective procurement policy and strategy formulation. The framework will be beneficial for organizations looking to improve their procurement processes and achieve better procurement outcomes.