1. An Intro to Professionalizing Procurement & Strategic Sourcing
What • Why • How

2. Strategic Sourcing & Professionalizing Procurement
Empowering and inspiring people to embed the change and make it stick
INSPIRING CHANGE
PEOPLE
SUSTAIN
TECNOLOGGY
PROJECT & PROGRAMME LEADERSHIP
PROCESS
Changing the way organisations shape, build and run procurement functions
PROFESSIONALIZING PROCUREMENT
TRANSFORM
SOURCING STRATEGY
SPECIFICATION & SELECTION
SUPPLIER MANAGEMENT
Transforming procurement to support business outcomes and set the foundations for success
STRATEGIC SOURCING
FOUNDATION

3. What and Why Professionalize
Professionalizing Procurement
Organization Diagnostics, Vision and Functional Model
Collaboration Model
Operating Processes and Governance
Organization Design
Capability Development Framework
Workforce Transition
Building Capability
Any of these ring true?
You’ve restructured your Procurement Organization but things have not really changed.
You don’t have clear ways of working and duplicate effort, systems and processes.
You’ve brought in new capabilities but it hasn’t seemed to have had the effect you were after.
You are reliant on traditional approaches to procurement that don’t deliver real business value.

4. The Professionalizing Procurement Roadmap
Organization Diagnostics & Vision
Operating Processes & Governance
Workforce Transition
Building Capability
Collaboration, Processes & Governance
Collaboration - ways of working, processes and governance
Assess, implement & embed technologies to support new ways of working
Technology
Diagnostic, Vision and Case for Change
Workforce Transition
Induction, Recruitment & up-skilling
Organisation Structure
Job Descriptions
Organization Design
The tools, techniques and consultation to transition staff to the future state organization
Bring in the right people with an inspiring on-boarding program and continue to develop capabilities
Current state analysis, case for change, and vision for the Procurement department and how it will engage with, help shape and support the Business
Team structures, headcount, roles & reporting lines
Clarity on expectations for each role
Career Progression
Performance Management
Learning & Development
Recruitment
Benchmarking
Functional Model
Capability Development Framework
Functional Model
Competency Model
Learning & Development
Career Paths
Functions by team
to determine accountabilities and responsibilities
Competencies by role & levels
Learning & Development Catalogue
Career maps by role, upwards & sideways

5. Discussion Points – Professionalizing Procurement
Think
Feel Do
What does your Procurement strategy say about the future shape, structure and resourcing for the organisation?
What are the key people capabilities and skills you will require to deliver your Procurement strategy and major programs?
What is your people development strategy (covering areas such as competencies and culture) for achieving your Procurement strategy?
Is everyone clear about team accountabilities, responsibilities, involvement and hand-offs?
How could you cover both Procurement and business competencies over a range of levels?
What can you provide people to help them identify and pursue career progression opportunities?
What are the specific skills gaps and development needs across the organisation and the relative priorities?
Have you updated your learning and development program to align with your competency model?
What is your retention and succession strategy?
Do you have clear processes that are aligned to how your systems and organisation works?
Are there opportunities to group roles more effectively?

6. Why focus on Strategic Sourcing?
A coherent strategy aligned to business priorities, with procurement linked to business performance
Improved supplier planning, management and performance underpinned by deep relationships
A sustainable, professional procurement organisation that delivers value to the business
Part of our established suite of Professionalizing your organisation methodologies and tools.
SOURCING STRATEGY
SPECIFICATION & SELECTION
SUPPLIERS / VENDORS
CORPORATE FUNCTIONS
SUPPLIER MANAGEMENT
GOVERNANCE
COMMS, CULTURE & CHANGE

7. The value of Strategic Sourcing
What are the elements of Strategic Sourcing?
Aligning the procurement approach to business strategy and performance
Providing a strategic assessment of costs and strategic business processes
Rationalizing suppliers and governance using a strategic supplier list
Implementing consistent supplier and procurement performance measurement
Developing a consistent approach to supplier relationship management
Ensuring an appropriate mix of suppliers are used for upcoming programs
Providing governance and support in the supplier selection process
What are the key benefits?
Improve supplier relations and establish strategic partnerships
Achieve efficiencies, reducing costs and risks
Improve performance and achieve a competitive advantage
Deliver best value from procurement spend
Meeting the sourcing needs of the business

8. Discussion Points - Strategic Sourcing
Think
Feel Do
What does your Procurement strategy say about how you are going to support the wider business goals?
Are you getting the best value from your current suppliers?
Have you got the right mix of suppliers?
Have you got visibility of all supplier spend from across the organisation?
How can you engage with the business to ensure that you are managing their demand and expectations and aligning their need with your capacity and expertise?
How can you strengthen the relationships with Strategic Suppliers in ways that increase transparency and better align critical business partners to your mission and objectives?
Are there opportunities to consolidate suppliers or spend across the Organization?
Are there any quick wins that can demonstrate the value of Procurement to the wider Organization?
Can you evolve your procurement processes to deliver improved outcomes, whilst still maintaining rigour, accountability and transparency?

9. APPENDIX

10. Organization Diagnostics, Vision and Functional Model
Organization Diagnostics & Current State Analysis
What you get
What we do
Produce Organizational diagnostics to clarify current state, key business drivers and priorities, linking your vision and strategic priorities to a high-level, functional design.
Procurement Vision
Functional Model
A clearly defined vision for procurement that is linked to corporate strategies, a view of the key business priorities and a functional model of where you want to take the Organization.

11. Specification & Selection
What we do
Focus on the identification and procurement of products, services or people to meet an existing business need or drive efficiencies.
What you get
How we do it
Support in scoping, managing and delivering a complex or large-scale procurement along with best practice tools, templates and methodologies to improve future procurement performance.
Identify procurement activities
Establish evaluation criteria
Perform a market assessment to identify suitable vendors and trends
Manage the procurement process through to vendor selection
Define functional and non-functional requirements
Finalize the commercials, complete the transition and embed

12. Our approach to Specification & Selection
What is our methodology?
Our approach fits within the established Scan, Focus and Act delivery framework
We have an established methodology that can be tailored to a client’s individual situation and requirements
SCAN
FOCUS
ACT
Review current state and understand drivers
Agree procurement route, process & timelines
Define Future State & Requirements
Run process and manage vendors
Capture Business Drivers, priorities & imperatives
Define business objectives and requirements
Develop Governance Arrangements
Capture Business Drivers, priorities & imperatives
Evaluate responses against requirements & objectives
Warm-up identified vendors
Define procurement scope
Develop Functional & Non-Functional Requirements
Select chosen vendor & sign-off
Assess the marketplace and identify vendors
Establish evaluation criteria, tools & team
Finalise commercials
Assess procurement options
Create procurement documentation
Transition to new provider(s) and embed

13. The value of Specification & Selection
Key drivers and benefits
Key outcomes
Identifying, evaluating and selecting the appropriate supplier(s) for a specific contract is critical across all areas of corporate procurement
A coordinated approach from requirements gathering through vendor evaluation, and subsequently to supplier negotiations, helps clients to deliver efficiencies and reduce the costs associated with all procurement activities
Following a robust and comprehensive specification & selection process will ensure that procurement functions focus on balancing cost against a supplier’s ability to deliver their specific goals and requirements
An objective evaluation process will ensure the best option is chosen and not just the cheapest
Structured end-to-end vendor selection and procurement support
Ability to identify and source specific products or key skill sets
Confidence developing & executing successful negotiating strategies
Access to knowledge best practice tools, templates & deliverables
A reduction in the cost of supplier contracts and arrangements