|Commodity and Supply Chain Profiling
As a good procurement manager it’s important to have the skill to analyse the current characteristics and the future potential value to be derived from markets, commodities, suppliers, technology, etc, to help you inform your procurement strategy development, and options appraisal. Commodity profiling will allow the organisation to understand available commodities, prices, availability, design constructs and overall market and supply chain capability and potential to assisting decision making on priority spend.
|Procurement adds value by enabling an organisation to establish a full understanding of the potential value to be derived from commodities and/or markets supporting decision making on commodities, consolidation of commodity spend, availability of commodities and associated market risks involved in their acquisition.|
|Reaching the top of your professional field will see you becoming more accountable for the development of very complex cross-cutting commercial activity (including identification of appropriate commodity strategies), seeking opportunities for the organisation to derive value for money nationally, by creating, developing and managing markets, leveraging opportunities for consolidated spend on a local and national level and ensuring risks are identified and mitigated in the process.
At the top of your career you will re responsible for managing escalation of issues, challenges and significant risks associated with commodity strategies.
|The best procurement managers will:
Understand, analyse and interpret historical spend patterns, contract compliance, price variations, costs, competitiveness and sources of spend in order to identify opportunities of consolidated cost savings.
|The best procurement managers will:
Lead and promote good practice policies to drive change in approaches to cost savings, working collaboratively and pushing out changes widely across the organisation.
Ensure that there is a strategic application of a range of complex spend methodologies using contemporary techniques to achieving improved spending, value for money and return on investment nationally.
Encourage collaboration between all players in the supply chain to explore spend and opportunities for cost savings.
Your role is to achieve competitive solutions and achieves improved outcomes.
Apply cost driver analysis across very complex categories of spend to support assessment of cost and value.
|Market and Supply Chain Analysis is the skill to interpret a broad understanding of the impact of a wide range of market factors and how they impact upon supply, demand, capability, flexibility and economic variants arising in the market place.|
|The best in class procurement will:
Create a culture within the Organisation which encourages output specifications, is receptive to Supply Chain Innovation and champions strategies to increase the Supply Chain’s value contribution to improved outcomes.
Influence design and supply chain development and cost/value consciousness through early customer/client engagement in strategy and specification development.
Set challenges to reduce identified cost drivers internally and externally, aligning to customer/end user needs, organisational drivers while deriving competitive advantage and achieving value for money.
|You should gear the organisation towards a developing a stronger commercial focus on achieving a successful return on its investments, where the standards for this are set by the definition of value for money employed across commercial deals.
Take accountability for achieving and developing the definition of value for money across the organisation and uses nuanced understanding of the motivations and behaviours of stakeholders, suppliers and networks to achieve the organisation’s objectives.
Know the difference between key commercial and organisational risks impacting own department and ensures that these are robustly managed.
Make yourself ultimately the go-to commercial person for the organisation and can move out of standard route when appropriate.
|Raise your profile by being known for your skills to critically assess short and long-term commercial models used by the organisation and its supply chain with a clear line of sight of the suggested risks of application, aligned with ensuring that the selected models achieve government policy and objectives.
Educate yourself to maximise commercial benefits through a deep understanding of the whole commercial life cycle, innovations, and new commercial models.