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Implementing Procurement Assessments

 

The Importance Of Procurement Assessments 

 

Getting the products your company needs to fulfill its business model can be an important part of your supply chain operations, often makes up a major element of a company’s budget, and has a direct impact on cost savings objectives.  Zycus’ annual survey of global procurement leaders, Pulse of Procurement 2018, revealed that 54% of the surveyed professionals recognized cost savings as procurement’s key focus area.

Despite its importance, it can be tough to make sure that your procurement is bringing your business the best results in terms of value, products, and services. This is especially true if things are moving at a rapid pace.

This is where a procurement assessment can help identify strengths and areas to improve. This type of assessment can be done within the company or by a separate, third-party organization, and can include analysis of data, as well as meetings with staff.

 

When Should You Do a Procurement Assessment?

 

Here at Routeique, we recommend that you do a procurement assessment when:

  1. You're new to your role or company and need additional information to better make decisions

  2. There's been an acquisition or merger

  3. You want to compare your results to an old assessment

  4. You have doubts about your procurements

  5. You're looking to cut out inefficiencies

  6. You want to better market your procurement group

  7. There are concerns about the quality of your procurement group

  8. There has never been an assessment 

  9. Things are not running smoothly

  10. You want to implement new technology

 

What Should You Include in Your Procurement Assessment? 

Many experts suggest that a structured procurement analysis’ framework should include a focus on the customer, procurement workforce, and include well-designed performance measures for all components of the procurement system.

It can include analysis of:

  • Your current baseline

  • Spending

  • Management assessment of special interest areas

  • Suppliers

  • Processes

  • Technology

  • Tools

  • Leadership/organization

  • Governance and compliance review and assessment

Gathering information can be done through analysis of internal data, as well as through meetings with key staff members.

 

Conducting Your Procurement Assessment

Once these steps have been taken, the next phase of your procurement assessment includes analyzing your findings, developing a plan for success, and ensuring that you adhere to it.

According to The Velocity Procurement Challenge, this can be done by:

  • Analyzing data to get a solid baseline, set direction, and identify cost savings.

  • Developing an understanding of where you are today, your goals, and how to bridge this gap.

  • Developing a plan to achieve the transformation that will enable you to reach our procurement goals.

  • Adopting your plan and tracking progress as time goes on.

 

Read More

Does your organization regularly conduct procurement assessments? Is there a related topic you’d like to see covered? Let us know your thoughts at info@routeique.com.

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