How does your Procurement measure up ?

To help establish the relative strength of Procurement in your organisation we have devised a simple questionnaire based around criteria important to companies in today’s changing world. 

Where are you on the journey to Best Practice procurement? 
To give you an idea rate your establishment against these criteria using the sliding scale and we will provide feedback on where you fit compared with similar types of companies.
We will be happy to offer advice on how you might wish to develop your capability. 
If you have any questions or queries please contact Murray Dilks at    murray.dilks@the-consultancy.co.uk 
web  https://www.the-consultancy.co.uk/

Please note all information provided is confidential.

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* 1. Leadership

No Senior Manager with overall authority, purchasing is devolved to budget holders. Spend responsibility spread across the business. Board or appropriate Senior Manager level representative, procurement recognised as primary function and a trusted adviser within the business.
Clear
i We adjusted the number you entered based on the slider’s scale.

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* 2. Strategy

No group wide purchasing strategy and few policies in place. Strategies exist only within the function. No clear governance. Strategy and policies are all clear, are communicated across the company and aligned with the overall business strategy.
Clear
i We adjusted the number you entered based on the slider’s scale.

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* 3. Process

Purchase ordering process is basic three way match (Order, Receipt and Invoice). No or few supply or purchasing agreements in place. Procurement processes integrated and include formal tender, category management and supplier relationship management. At least 80% of spend is against negotiated contracts or agreements.
Clear
i We adjusted the number you entered based on the slider’s scale.

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* 4. Systems

An accounting system is used for Purchasing, data may be available but not used to analyse or manage supplier spend. Procurement part of fully integrated ERP business systems with full use of e-Procurement and e-Sourcing software. Highly digitised.
Clear
i We adjusted the number you entered based on the slider’s scale.

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* 5. Performance

No measures or KPIs in place for Suppliers and no Purchasing targets for staff in the business. Procurement function is measured with KPIs that link directly into the overall business targets. Staff have targets and measures.Suppliers are  measured against at a minimum Quality, Cost,Delivery and Service.
Clear
i We adjusted the number you entered based on the slider’s scale.

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* 6. Staff Capability

Limited purchasing expertise in house, staff learn from colleagues. No formal training and development of staff in Purchasing. Majority of staff have relevant academic or vocational qualifications. Plans in place to provide both formal and informal ongoing development.
Clear
i We adjusted the number you entered based on the slider’s scale.

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* 7. Supplier Base

Number of suppliers is not known, no or little consolidation to improve purchase power. Basic or no supplier approval and no due diligence or supply chain risk analysis carried out. No. of suppliers is tightly controlled, aligned with sourcing strategies. The right number of suppliers for the type of business. Supplier risk is routinely mapped and mitigated against.
Clear
i We adjusted the number you entered based on the slider’s scale.

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* 8. Supplier Relationships

Most orders are placed as spot buys with little involvement from suppliers apart from operational day to day input input. Supplier meetings tend to be focused on current delivery and quality issues. Supplier quality, cost, delivery and other relationship criteria are measured.Regular and structured approach to supplier performance improvement. Senior level engagement from key suppliers. Innovation from suppliers is actively encouraged and embraced.
Clear
i We adjusted the number you entered based on the slider’s scale.

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* 9. Value Creation

Purchasing is operational and focused mainly on price and delivery. Does not provide market intelligence, (e.g. commodity) pricing trends, market forecasts or other macro environmental updates for the business. Price and cost competitive supplier base, with regular suppliers meetings to reduce indirect and direct costs. Procurement provides business with anticipatory information regarding markets, risks and appropriate actions.
Clear
i We adjusted the number you entered based on the slider’s scale.

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* 10. Relationships

Purchasing operates in isolation with little strategic integration with the rest of the business. Mainly transactional relationships in place both internally and externally. Procurement leads cross functional teams and identifies and manages internal and external stakeholders and relationships. Procurement seeks feedback from wide variety of sources to help drive improvement.
Clear
i We adjusted the number you entered based on the slider’s scale.

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* 11. Please state the business sector you are most closely associated with

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* 12. Do you supply ?

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* 13. What size is your company in terms of Turnover?

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* 14. Please provide any feedback or comments - thank you

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* 15. Please add your email address and/or telephone number if you would like to know more about the maturity and status of your Procurement compared to industry standards or if you would like to discuss with us ways to improve the performance of your Procurement.
Thank you for your input.

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