Efficio’s Procurement Effectiveness Diagnostic delivers a road map for improving the effectiveness of your Procurement organization.
We will help you become a strategic partner not just in cost management but in value creation through the introduction of new structures, strategies, processes and technologies. Our road map is based on an analysis of the following 10 dimensions of procurement effectiveness:
- Category Planning
- Strategic Sourcing
- Category Management
- Measuring, Reporting and Tracking
- Engagement and Change Management
- Process, Policy and Risk
- Technology and Research/Insight
Assess the 'as is' state
Efficio starts with the ‘as is’ state, a detailed assessment of the current Procurement organization and its supporting processes using appropriate combinations of data collection, surveys and face to face interviews.
Important questions include:
- Resources: Are the right levels of Procurement resource in place?
- Technology: Is it being used to best advantage?
- Strategy: Is Procurement aligned to the needs of its business unit customers?
- Sourcing: Are current efforts actually delivering?
- Processes: Are clear procurement processes being operated, especially across category planning, sourcing and Supplier Relationship Management (SRM)?
We use the weightings to categorize the operation, or its components, in terms of procurement maturity, and thus the distance they have to travel.
Determine the desired 'to be' state
Next, we work with you to determine the desired ‘to be’ state, and draft the road map based on your business’s priorities. Our team takes into account the dependencies and inter-relationships between different aspects of procurement, and recognizes that it is not achievable for an organization to strive to become world-class, across the board, in one go.
At Efficio, Procurement Effectiveness Diagnostic is just the starting point. We will support you to the desired level in ensuring that the road map is implemented correctly, efficiently and on time, and our service is often the foundation for continuing involvement.
Our clients include waste management company Biffa, which used our Procurement Effectiveness Diagnostic to better align current and new resources to the category groups that offered the largest value creation opportunities. At Thames Water, we used the approach to design OJEU-compliant process improvements around sourcing, SRM and supplier appliances, while at BGL the Procurement Effectiveness Diagnostic framework has been the basis for a completely new Procurement function with associated technologies.