Strategic Procurement Checklist areas for review:
Here is a strategic procurement checklist to work through
- Carry out spend analysis of current and future requirements.
- Historical spend will normally give some indicative trends but if this is going to change in the future, the department should look at how it will be agile to support projects that are small value but high risk. The majority of the spend is related to professional services.
- Assess how purchases are made, at the moment the procurement team is involved in a variety of different tenders and generally of a tactical nature i.e. RFX and support on reactive queries.
- Profile key suppliers- do we understand the competitive landscape, and in terms of the pipeline of projects, how attractive is XXXXX as a customer?
- Ask how is VFM quantified? Do we understand what is valued by the stakeholders both internal and external, is the procurement department aligned to the corporate strategy?
- Do you have a tendering system? If not its time to put a business case in for a new e-procurement system to reduce the level of administration and release staff to concentrate on areas of value-add such as commercial negotiations, contract management, reviewing opportunities for aggregation and time to review projects and if required the distinctions between procurement and grants
Start by assessing how purchases are made, for example you might state “at the moment the procurement team is involved in a variety of different tenders and generally of a tactical nature i.e. RFX and support on reactive queries”.
Start by profiling key suppliers- do we understand the competitive landscape, and in terms of the pipeline of projects, how attractive is XXXXX as a customer? Check out category profiling for more ideas
How is VFM quantified? Do we understand what is valued by the stakeholders both internal and external, is the procurement department aligned to the corporate strategy?
Do you have a tendering system? If not its time to put a business case in for a new e-procurement system to reduce the level of administration and release staff to concentrate on areas of value-add such as commercial negotiations, contract management, reviewing opportunities for aggregation and time to review projects and if required the distinctions between procurement and grants.
| Checklist | |
| Does XXXXX have a procurement strategy linking the department goals with the business objectives? | |
| Is there a formal statement of procurement policies and plans including how they will be embedded into the organization? | |
| Should we periodically review and report on outcomes of major procurement projects at a senior management level? | |
| Do we understand who our key suppliers are and do we understand their supply chains, can we use this information to build relationships with our suppliers and plan our tender pipeline accordingly | |
| Does the procurement strategy contain an assessment of the resources and the potential to reduce cost or improve services? Is there scope to adopt innovative approaches to improve the commercial output of the team whilst managing risk? | |
| Can we capture what spend can be influenced and what isn’t? Do we have a clear understanding of what projects should be routed via a procurement or state aid? |
You might want to check out more information for category management