New procurement best practices Benchmark Service launched
Purchasing Index is launching its international Procuretrak service locally, aimed at benchmarking Procurement leading practices in increasing detail. The attached graph compares the amount of spend controlled by purchasing to best in class companies.
Alan Low, Managing Director at Purchasing Index told Smart Procurement that” “Updated reports every 6 months, incorporating participating members’ own information, will seek, among many other things, to highlight the following:
– Techniques that enable Procurement to work closely with their clients
– Ways in which organisations that undertake strategic sourcing initiatives ensure that savings are sustained and enhanced over time
– How participants win and sustain senior management sponsorship
– How Procurement obtains a complete view on how and on what the organizations money is being spent with suppliers
– Which e-procurement tools actually deliver what results and in what circumstances
– How organisations are dealing with the obligations to spend more of their money with BBBEE and SME suppliers and
– Ongoing comparative analyses on a multitude of key performance indicators.
The graph below shows a sample comparison of the numbers of items purchased that has been codified in comparison to best in class.
“Coupled to this each client will receive a focused commentary, highlighting relevant, new initiatives, processes, techniques, systems, etc, aimed at assisting them to be more effective and deliver greater value within their organization. Purchasing Index analysts will be responsible for detailed feedback sessions with each client,” says Low.
Procurement has the opportunity to provide a commercial interface into most of the organisation’s departments. But the delivery of savings is highly dependent on:
– how the Procurement function is led, set up, managed, staffed, and funded
– the level of senior management sponsorship
– the quality and quantity of skills, systems and information that is available, and
– how Procurement liaises and interacts with its clients.”
“This service will help organisations understand how Procurement is developing and delivering on its potential within the organization.”
This commentary will not only draw on the data being collected from an increasing client base but will also include Purchasing Index’s market intelligence as to general procurement changes and innovations, both here and overseas.
“Over the last five years Senior Management has been turning a spotlight on to Procurement. It is now demanding savings from Procurement, proof that savings are being achieved and sustained and, increasingly, proof that the savings get to the bottom line. Many of the leading Procurement Departments within forward-thinking organisations are developing their services along commercial lines, not least to ensure their survival in the face of increasing threats from Outsourced Procurement companies,” says Low.