Building Strategic Procurement Capability 

Building blocks to enable procurement value

Regardless of an organisations procurement function maturity, there are six key building blocks to bolster procurement capability and enable procurement value within an organisation.

The Six Building Blocks to Strategic Procurement

 

Primarily, from the 'top down', the right procurement strategy, associated plans and performance measurement methods need to be built to drive the procurement function. The second row of blocks enables a direct link to the wider organisation through a procurement governance framework and the management of the organisational interface, particularly with internal customers, executives and suppliers. All upon a foundational layer of people, processes, and technology, built upon your organisation's core values and guiding principles.

Can your organisation answer “Yes” to these questions?

1. A procurement strategy setting process is operative for developing procurement strategies.
2. You have developed and made operational, a clear vision and mission for the procurement function, procurement strategies, business plans and measurable goals.
3. Risk and total cost are balanced in procurement strategy setting.
4. External influences, such as market and economic conditions, legislation changes and moral obligations are dealt with in procurement strategy and policy (e.g. security of supply, social responsibility and sustainability, talent scarcity, etc).
5. Procurement policies that are simple, based on a compelling business case, and consistent with the corporate culture are operative and the organisation's systems have appropriate controls embedded which support the procurement governance model.
6. Procurement integrates and develops key relationships with internal customers, accurately understands and supports customer challenges and priorities and proactively identifies improvement opportunities in customer areas.
7. Opportunities and risks are shared with suppliers to optimise procurement results, and joint business plans and projects are in place with suppliers focused on extracting additional value from the collaborative relationship.
8. Procurement roles have defined technical and personal competency requirements, procurement personnel are assessed against the role competencies and individual training plans are developed and managed to close the gaps.
9. A category management framework is in place for all procurement.
10. Procurement personnel are allocated to value-adding strategic and tactical activities, with technology, digitisation and automation utilised to eliminate manual, transactional procurement activities.

The solution
Peak Services Procurement are experts in the building blocks for strategic procurement capability and can assist you say “yes” to the 10 questions above.  The services we provide include strategic procurement reviews, developing procurement policy and governance frameworks, and procurement process reengineering.

Peak Services Procurement Office can be engaged via: 

• State Government Standing Offer Arrangement (DSDMIP-0972-18 – Local Content – Specialist Procurement Services). 
• Local Buy Panel Arrangements for
  • Project Management Services (Contract No. LB279) 
  • Business Management Services (Contract No. BUS272)
  • Engineering & Environmental (Contract No. BUS262) 

For more information on our Technical Consulting Advisory Services, contact Brian Jackson, Director – Consulting and Technical Advisory Services on 0467 767 825. or email