Implement Procurement Maturity Model

Ensuring a practical use of competences for an effective implementation of procurement projects

13 November 2015

Support your procurement department in becoming a key partner and change agent.

This is an extract of The Implement Procurement Maturity Model. Please download the entire article above.

Implement Consulting Group has developed a self-assessment tool which can be used by procurement departments working with or focusing on efficiency and their level of maturity within different areas of procurement. It is a practical tool aimed at supporting the procurement department in becoming a key partner – a change agent within the company.

Overview and input are structurally provided across eight core dimensions within procurement. The individual dimensions cover areas that the procurement department handles on a daily basis – areas that include either specific practices and processes or methods and tools. Seven dimensions address procurement themes and challenges regarding sourcing, strategy processes, the organisational structure, Procure-to-Pay (P-t-P), reporting and documentation, systems supporting the procurement department and supplier relationship management (SRM) – areas of procurement which the procurement department addresses on a daily basis, internally as well as across the company.

The eighth dimension, change and effect, reflects different aspects of change management when working with procurement. The dimension addresses the challenges that exist in a transformation process and especially the critical factors that must be addressed and handled for a continued change and effect.

The tool is inspired by the internationally renowned CMM maturity model, which is a well-documented model for evaluating a function’s maturity level from different relevant dimensions. The self-assessment tool focuses on each dimension as a collection of elements that describe certain aspects of maturity in an organisation. It is a collection of tangible elements, such as training and communication, processes and practices, techniques and automation, as well as less tangible elements, e.g. the ability to gain a high level of compliance, coherence and understanding for procurement decisions. All these elements describe aspects of procurement maturity in the company.

Implement Procurement Maturity Model

Implement Procurement Maturity Model aims at providing your procurement department with:

  • An OVERVIEW of the maturity of the procurement department within eight dimensions.
  • INPUT for making the work performed by the procurement department more efficient and professional by highlighting potential future development initiatives.
  • INSPIRATION and ideas for improvement through benchmarking with similar procurement departments in other companies.

Overview, input and inspiration form a platform for discussing and working with the potential improvement areas that are highlighted as a result of the self-assessment in order to start initiatives that can take the procurement department to a higher level of maturity and efficiency.

Insight and inspiration

Increased agility using e-auction

One of the main themes in the very near future will be agility – the ability to identify and utilise market opportunities faster than the competitors. Procurement can contribute to creating this organisational agility by ensuring e.g. higher flexibility in the supply chain, more streamlined processes and a wider diffusion of methods and tools. A powerful tool for achieving this is the employment of frequent e-auctions.

Green procurement - what on earth is that?

Green or sustainable procurement defines a process which fundamentally takes into consideration other aspects of the purchase than only price and quality, but also the environmental, macroeconomic and social aspects of the purchased product’s total life cycle.

A sustainable purchase e.g. considers the physical conditions under which we are working – whether our offices are environmentally responsible, whether there are low-energy light bulbs in the lamps, and whether organic food is served in the canteen. Sustainability can also be included in many of the considerations and cost calculations that are used in the procurement department, and there are significant opportunities for showing both financial and non-financial effects for companies who want to work with sustainability.

New competencies for strategic sourcing?

The traditional perception of strategic sourcing and the specialist competences required by employees working in the strategic sourcing department are changing. The category manager is increasingly required to operate across the various departments of the organisation and, in many cases, has to implement changes across value chains – both inside his own organisation and in relation to suppliers.

This requires that the category manager strengthens and focuses his competences within a number of specialist areas. At the same time, it may be beneficial to rethink the division of tasks in other areas, so that specialist competences e.g. within data analyses, the legal area, IT and functional competences from the rest of the organisation are used within procurement to a larger degree in order to support the competences required for the tasks performed by the category manager.

This is an extract of The Implement Procurement Maturity Model. Please go to the top of the page to download the entire article.

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