Presentation on theme: "An Intro to Professionalizing Procurement & Strategic Sourcing"— Presentation transcript:
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 stickINSPIRING CHANGEPEOPLESUSTAINTECNOLOGGYPROJECT & PROGRAMME LEADERSHIPPROCESSChanging the way organisations shape, build and run procurement functionsPROFESSIONALIZING PROCUREMENTTRANSFORMSOURCING STRATEGYSPECIFICATION & SELECTIONSUPPLIER MANAGEMENTTransforming procurement to support business outcomes and set the foundations for successSTRATEGIC SOURCINGFOUNDATION
3 What and Why Professionalize Professionalizing ProcurementOrganization Diagnostics, Vision and Functional ModelCollaboration ModelOperating Processes and GovernanceOrganization DesignCapability Development FrameworkWorkforce TransitionBuilding CapabilityAny 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 & VisionOperating Processes & GovernanceWorkforce TransitionBuilding CapabilityCollaboration, Processes & GovernanceCollaboration - ways of working, processes and governanceAssess, implement & embed technologies to support new ways of workingTechnologyDiagnostic, Vision and Case for ChangeWorkforce TransitionInduction, Recruitment & up-skillingOrganisation StructureJob DescriptionsOrganization DesignThe tools, techniques and consultation to transition staff to the future state organizationBring in the right people with an inspiring on-boarding program and continue to develop capabilitiesCurrent state analysis, case for change, and vision for the Procurement department and how it will engage with, help shape and support the BusinessTeam structures, headcount, roles & reporting linesClarity on expectations for each roleCareer ProgressionPerformance ManagementLearning & DevelopmentRecruitmentBenchmarkingFunctional ModelCapability Development FrameworkFunctional ModelCompetency ModelLearning & DevelopmentCareer PathsFunctions by teamto determine accountabilities and responsibilitiesCompetencies by role & levelsLearning & Development CatalogueCareer maps by role, upwards & sideways
5 Discussion Points – Professionalizing Procurement ThinkFeelDoWhat 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 performanceImproved supplier planning, management and performance underpinned by deep relationshipsA sustainable, professional procurement organisation that delivers value to the businessPart of our established suite of Professionalizing your organisation methodologies and tools.SOURCING STRATEGYSPECIFICATION & SELECTIONSUPPLIERS / VENDORSCORPORATE FUNCTIONSSUPPLIER MANAGEMENTGOVERNANCECOMMS, CULTURE & CHANGE
7 The value of Strategic Sourcing What are the elements of Strategic Sourcing?Aligning the procurement approach to business strategy and performanceProviding a strategic assessment of costs and strategic business processesRationalizing suppliers and governance using a strategic supplier listImplementing consistent supplier and procurement performance measurementDeveloping a consistent approach to supplier relationship managementEnsuring an appropriate mix of suppliers are used for upcoming programsProviding governance and support in the supplier selection processWhat are the key benefits?Improve supplier relations and establish strategic partnershipsAchieve efficiencies, reducing costs and risksImprove performance and achieve a competitive advantageDeliver best value from procurement spendMeeting the sourcing needs of the business
8 Discussion Points - Strategic Sourcing ThinkFeelDoWhat 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?
10 Organization Diagnostics, Vision and Functional Model Organization Diagnostics & Current State AnalysisWhat you getWhat we doProduce Organizational diagnostics to clarify current state, key business drivers and priorities, linking your vision and strategic priorities to a high-level, functional design.Procurement VisionFunctional ModelA 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 doFocus on the identification and procurement of products, services or people to meet an existing business need or drive efficiencies.What you getHow we do itSupport 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 activitiesEstablish evaluation criteriaPerform a market assessment to identify suitable vendors and trendsManage the procurement process through to vendor selectionDefine functional and non-functional requirementsFinalize 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 frameworkWe have an established methodology that can be tailored to a client’s individual situation and requirementsSCANFOCUSACTReview current state and understand driversAgree procurement route, process & timelinesDefine Future State & RequirementsRun process and manage vendorsCapture Business Drivers, priorities & imperativesDefine business objectives and requirementsDevelop Governance ArrangementsCapture Business Drivers, priorities & imperativesEvaluate responses against requirements & objectivesWarm-up identified vendorsDefine procurement scopeDevelop Functional & Non-Functional RequirementsSelect chosen vendor & sign-offAssess the marketplace and identify vendorsEstablish evaluation criteria, tools & teamFinalise commercialsAssess procurement optionsCreate procurement documentationTransition to new provider(s) and embed
13 The value of Specification & Selection Key drivers and benefitsKey outcomesIdentifying, evaluating and selecting the appropriate supplier(s) for a specific contract is critical across all areas of corporate procurementA 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 activitiesFollowing 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 requirementsAn objective evaluation process will ensure the best option is chosen and not just the cheapestStructured end-to-end vendor selection and procurement supportAbility to identify and source specific products or key skill setsConfidence developing & executing successful negotiating strategiesAccess to knowledge best practice tools, templates & deliverablesA reduction in the cost of supplier contracts and arrangements