The first stage of the procurement process is understanding the need. Pre- sourcing steps help to make preparations before the sourcing steps start.
Procurement professionals are sometimes viewed as blockers or challengers who delay the sourcing process, it’s important to work within the culture of your organisation but if procurement is passive ie. offers no strategic direction, there is an opportunity to show that good procurement adds value.
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Pre- Sourcing Links
The first stage of the procurement process is understanding the need. Pre- sourcing steps help to make preparations before the sourcing steps start. A lot of the prep sourcing activities are also covered under Category Management For high value or complex contracts, the procurement manager should include a step to develop a procurement strategy. This will help all parties have a single document for reference and sign off. The procurement exercise should be aligned with the strategic goals of the organisation.
- Porters 5 Forces
- PESTLE Analysis
- Spend Analysis- this is from your organisations finance system
- Develop the RFP
- Routes to Market
- Project plan
- Project Charter
- Stakeholder Mapping
- Category Profiling
- Category Management
Procurement professionals are sometimes viewed as blockers or challengers who delay the sourcing process, it’s important to work within the culture of your organisation but if procurement is passive ie. offers no strategic direction, there is an opportunity to show that good procurement adds value.
Is there a market for the need, or does the company want something different that requires innovation? As part of the procurement process, the procurement manager should provide advice on the supplier landscape.
Some organisations use a business case as a governance mechanism to commit funds. It is best practice to use business cases when a contract value hits a certain threshold. A business case should prove that the need is valid and not a nice to have. It should outline the requirements, cost, and risk.
For high value or complex contracts, the procurement manager should include a step to develop a procurement strategy. This will help all parties have a single document for reference and sign off. The procurement exercise should be aligned with the strategic goals of the organisation.
Procurement professionals need to be interpersonal and wear several different hats. You can help build confidence by demonstrating a clear picture before you embark on a tender process.
Guiding your business through the project
Remember you are the Pro!
For Example
Enhance your Procurement Journey
- Use the resources as a starting point .
- Ask for peer reviews
- Sign up to webinars such as Hackett
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