Procurement Performance Assessment
The performance of your procurement function correlates directly with the financial performance of your organisation. An increase in procurement functional capability is directly proportional to increasing profitability. Consequently, organisations are increasingly focussing on how they can raise the bar when it comes to the capability of their procurement functions.
The first step in developing procurement capability lies in understanding exactly how the existing function is currently performing.
The Procura Diagnostic
Procura have developed a suite of tools and methodologies which allow us to accurately assess the structure, functional capability and key performance metrics of procurement functions at all levels of development and sophistication.
Our Procurement Capability Assessment tool measures 60 key criteria against the Enablers of Procurement Excellence
The assessment provides a very clear understanding of how a function is performing on a bench marked scale (e.g - from ‘Operational’ to ‘Standard’ to ‘Professional’ to ‘Excellent’).
Our Procurement Effectiveness Model provides clients with clarity on the Return-on-Investment being generated by their procurement functions. The model has evolved over several years to reflect the growing level of sophistication and potential in today’s procurement functions. In addition to the core analysis of ‘savings versus costs’ we also examine yield, compliance, velocity and spend influence – all factors which will ultimately underpin a culture of continuous improvement.
Procura’s expert diagnostic will help you to:
- Understand how good your procurement function is
- Benchmark your function against sector comparisons
- Identify, precisely, the areas that require improvement and build a plan to achieve this
- Provide the basis for your procurement strategy
- Align your procurement function to your business objectives
- Provide a development roadmap for improvement
- Measure Key Performance Indicators and set-up a Procurement Balanced Scorecard
Start your organisation’s journey to procurement excellence
With a clear understanding of the starting point in place, Procura work with organisations to build procurement transformation plans, mapping out the journey to procurement excellence.
Using the performance assessment tools and models (outlined above) enables our clients to define staged targets for improvement (and the consequent financial improvements in delivery). A roadmap for improvement is then developed into a detailed Procurement Transformation Plan.
Every organisation is of course unique with different starting points, goals and challenges. Procura’s assessment tools are customised and aligned to the requirements of each unique organisation, sector and industry. For example, for the NHS, we work with the NHS Procurement & Commercial Standards, helping to build the Procurement Transformation Plans (PTPs) required for each NHS Trust following the Carter Report.
Whatever your organisation, if you are starting out on the journey to Procurement Excellence, we can provide you with the roadmap.
We have a tried and tested methodology enabling us to rapidly and efficiently deliver clear and actionable analysis to clients. We deliver more than 20 spend analysis projects a year for clients.
Our clients range from small companies to global corporations, as well as Private Equity portfolio investors.
We are specialists in procurement cost reduction. Our consultants work closely with all kinds of organisations to improve their profitability through identifying, delivering and maintaining savings in procurement expenditure. A relentless focus on bottom-line results combined with our deep supply-market knowledge ensures that spend is optimised – and stays optimised.
- Our team has achieved over £25m in savings
- Projects are self-funding with no risk for clients
- We work closely with your people to embed best practice
- Our unique spend intelligence service ensures ongoing savings