procurement maturity sketch - tradeshiftdownloads.tradeshift.com/procurement maturity...

4

Click here to load reader

Upload: ngotruc

Post on 21-Mar-2018

212 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Procurement Maturity Sketch - Tradeshiftdownloads.tradeshift.com/Procurement Maturity Sketch_preview.pdf · Procurement Maturity Sketch ... metrics with nebulous goals SNAPSHOT OBJECTIVES

Procurement Maturity Sketch Jason BuschFounder and Head of Strategy

About Tradeshift:

All your suppliers. All in one place.Procurement, payables, risk management. Radically nimble and connected.

Page 2: Procurement Maturity Sketch - Tradeshiftdownloads.tradeshift.com/Procurement Maturity Sketch_preview.pdf · Procurement Maturity Sketch ... metrics with nebulous goals SNAPSHOT OBJECTIVES

• Immature P2P processes / programs are typically loosely connected with overall procurement objectives & metrics with nebulous goals

SNAPSHOT

OBJECTIVES

TECHNOLOGY

• Procurement strategies begin to consis-tently capture indirect spend

• Activities and feedback loops to improve transactional (P2P) metrics

• Procurement and “buying” is about organizational influence via S2P processes that are 100% integrated with supply chain, AP, treasury, finance, etc.

• Transactional and strategic procurement activities become “one”

• Buying is sourcing, sourcing is buying (and everything is supply chain)

• Suites and virtualized suites dominate application usage

• Networks & platforms become “modules” in certain cases

• An increasing proliferation of “app” services

• Networked enrichment and intelligence at the fingertips of all buyers

• Ensure supply without slowing down the business

• Encourage basic technology usage to enable procurement objectives

• Spend capture and savings capture both important

• Transactional compliance, reporting and visibility underpin efforts

• Lack of system automation and integra-tion with other functional areas

• Supplier-funded / leveraged models such as Grainger or Amazon web ordering

• Early eProcurement adoption possible

• Buying process integrated with eProcurement deployments

• P2P programs may include linked invoicing / transactional buying

• Frequent use of supplier networks for on-boarding, information & document exchange

FOUNDATIONAL MODERN BUSINESS-ENABLING

% of organizations:

10-15 %75-90 % A “wee bit”

2  | Procurement Maturity Sketch

Procurement Maturity SketchAREA

Page 3: Procurement Maturity Sketch - Tradeshiftdownloads.tradeshift.com/Procurement Maturity Sketch_preview.pdf · Procurement Maturity Sketch ... metrics with nebulous goals SNAPSHOT OBJECTIVES

FIRST GLANCE

METRICS, ALIGNMENT

TECHNOLOGY, ENVIRONMENT

SUPPLIERS

ASPIRATIONS, MOTIVATIONS

Transactional and strategic procure-ment activities are “one” – buying is sourcing, sourcing is buying (and everything is supply chain)

The organization wants to improve all procurement activities through better access to supplier data across processes / tools; supplier management as an enabler

Organizations want to ensure supply without slowing down the business while encouraging basic tech usage to enable procurement (even if the technology is provided by suppliers)

Suites (or virtualized suites) drive better outcomes for suppliers by actively updating overall master data, profiles, SKU data, etc. tied into buyer transactional systems

Suppliers go through “basic” on-board-ing processes as managed by procure-ment; supplier management activities and P2P begin to come together

Suppliers drive procurement to their own preferred selling channels; rela-tionships managed offline (typically); some suppliers may go through “basic” on-boarding processes

Suites and virtualized suites dominate application usage; networks & plat-forms become “modules” in certain cases as “app” services begin to prolif-erate and simplify integrations

Buying process integrated with ePro-curement deployments and often broader P2P programs; frequent use of supplier networks for information & document exchange

Lack of system automation and integration with other functional areas; possible early, limited usage of ePro-curement tools and/or online supplier systems (e.g., Grainger, Amazon)

Centers of excellence for S2P and related (e.g., AP, treasury, operations) help drive programs for procurement; metrics centered on enablement and continuous improvement

The rise of the CPO and her team (category managers, contract negotia-tors, etc.) influences P2P; new procure-ment org structures shape indirect spend execution (e.g., shared services)

Centralized purchasing with limited stakeholder involvement in policy, decision making, etc. limit KPIs/metrics (if any) to basic areas like cycle or approval times

P2P for transactional buying is ubiquitous; procurement and “buying” is about organizational influence via S2P processes that are 100% integrated with supply chain, AP, treasury, finance, etc.

Procurement strategies begin to consistently capture indirect spend with activities and feedback loops to improve transactional (P2P) metrics; this is “spend management”

Immature P2P processes/programs are loosely connected from overall procurement objectives; nebulous goals (e.g., “spend under manage-ment”) sometimes introduced

TOTAL PAGE SCORE: ____________ Procurement Maturity Sketch | 3

The Procurement Game — Placing the “You Are Here Dot”For each area, select the box that describes your current environment; add up your score when complete.

AREA 1 POINT 2 POINTS 3 POINTS

Page 4: Procurement Maturity Sketch - Tradeshiftdownloads.tradeshift.com/Procurement Maturity Sketch_preview.pdf · Procurement Maturity Sketch ... metrics with nebulous goals SNAPSHOT OBJECTIVES

5 15

high

low128

Long-term sustainability and results

Clear focus on automation Combination of efforts Clear focus on businessvalue and alignment

How to interpret your score

Total Points

LEARN MORE ABOUT TRADESHIFT

Call our sales team at +1.800.381.3585 for a demo or consultation, and learn how you can use Tradeshift to reach your goals.