Procurement development
1. The document outlines the key steps in procurement development including identifying demands and specifications, defining roles of participants in the procurement process, conducting market analysis and understanding supplier requirements, establishing a cost structure and pricing model, developing procurement strategies by sector, and defining procurement processes and contracts management. 2. It discusses analyzing the supplier market, having internal knowledge of the procurement market, understanding supplier requirements and acceptance, and knowing the cost model and prices for each sector when developing procurement strategies. 3. The document also mentions defining procurement processes, guaranteeing adherence to processes, using appropriate models and considerations, and orienting activities back-to-back when executing procurement.
Procurement development
- 2. Procurement development 1º: Business orientation. • Identifying the demand. Specifications. PROCESS • Definition of participants in the purchasing to pay process COMPLIANCE • Role of each participant. COMPLIANCE • Requirements definitions: demand, delivery time, prices, quality, etc. PROCESS 2º: Market 2º M k t analysis. l i • Supplier´s market analysis. PROCESS • Internal procurement market knowledge. p g PROCESS • Supplier´s requirements. COMPLIANCE • Supplier acceptance. PROCESS 3: 3º: Cost structure. • Knowledge of cost model and prices for each sector. PROCESS
- 3. Procurement development 4º: Strategy by sector. • Products/services and suppliers. PROCESS • Negotiation model & process BOTH • Strategy definition and procurement decisions. COMPLIANCE 5º: Execution. • Procurement processes definition. PROCESS • Guarantee procurement processes. COMPLIANCE • Models to use, considerations, premises, etc. Contracts & Orders. , ,p , BOTH • Back to back orientation. PROCESS 6º: Contract mangement. • Approval process. COMPLIANCE • Responsibilities definition. PROCESS • Follow-up of the contract . PROCESS
- 4. Procurement development 1ª Purchasing to pay processes. 2ª Suppliers development. 3ª Definition of purchasing strategies by purchasing family. 4ª Contract Management.
- 5. Procurement development 1ª Requirements to pay. • Process per purchasing family. • Who buy • Existence of purchasing orders. • Control of evidences • etc 2ª Needs and advantages of supplier development. • Supplier strategy per purchasing family family. • Number of suppliers. • Numbers of suppliers per purchasing volume. • Purchasing volume per Supplier and purchasing order. • % of purchasing volume and number of suppliers per purchasing category. • Number of new suppliers per year. • Key performance indicators for supplier development. Delivery time, quality, etc. • etc. •3ª Needs and advantages of purchasing categories. • Organization development and knowkedge knowkedge. • Savings • Lead buyers organization. • Fine purchasing volume control. • Improvement of stocks management. • Cross-functional coordination. • etc. 4ª Needs and advantages of contract management. • Purchasing volume covered by purchasing orders. • Purchasing volume covered by contracts contracts. • Need of continuos improvement. • etc.