Is your procurement department World Class?
Our procurement scan quickly reveals the answer. Our systematic approach gives you an indication of the performance of your procurement department. This provides a systematic assessment and overview of the performance of your department. In addition, we indicate proposed improvements. A matrix with medium and short term approaches is derived from the analysis.
Up to now, most companies have underestimated the importance of procurement. The procurement department accounts for about 60% of a company’s expenditures. Hidden profit potential not only result in cost reduction or efficiency increase but also have an on-going effect on the performance of the entire company.
In a short project we investigate the impact of procurement on company performance. The examination has on two main approaches:
- Internal opinion assessment
- External benchmarking
Fast assessment with the procurement scan approach
Returning to the medical check-up analogy: Like in a medical check-up, your help is essential to increase the status and performance contribution of the procurement department. How do we assess your contribution?
By conducting structured interviews with all departments an internal picture of the strengths, weaknesses and development requirements is derived. Subjective input is checked against external benchmarks and consolidated into cross-departmental approaches.
Central objectives of the procurement scan are
- Strategic procurement
- Organization of the procurement department
- Contribution of procurement to company performance
- Procurement management/controlling
By incorporating employees into the project the acceptance of the performance assessment is likely to increase. Moreover, motivation and suggestions for optimization by employees increase the likelihood the measures will be implemented. Using our proven methods you will also profit from the experience and ideas of your workforce from purchasing and in other departments and defuse emotional debate with solid facts.
Procurement Scan strengthens the procurement department
The Procurement Scan is conducted in three phases, which – depending on the exact guidelines of the project – are concluded in about four weeks. Part one of the project deals with orientation on the task, customizing and tailoring the questionnaire, and selecting the interview partners. Then Part two compares the results of conducted interviews with external benchmarks. Finally, specific approaches are derived in part three.
Procurement Scan provides direct recommendations
The resulting matrix with recommendations for optimization of medium and short term approaches is shown below.
A plan is developed by all affected departments to further develop the purchasing function, for example, with a fixed action plan for the next 3 years.
- Agreed upon plan to develop the procurement function. The strong involvement of purchasing agents in product development is included here.
- Increased motivation within the procurement department through deep integration of other departments
- Higher visibility of the procurement department in all parts of the company
- Establishment of steering committees
Typically the procurement scan is short project. As a matter of course we will support you in developing your individual roadmap.
Contact us and start your initiative for a better procurement now!
Dr. Marcel Urban