Assessment of Procurement Capability
The most critical step in transformation is to evaluate the roots of the of existing capability.
At Velocity, our belief is that true transformation requires a deep behavioral change in your organization based on the principles of your unique culture. Velocity maintains world-class benchmarks for 9 key dynamics of successful Procurement organizations across people, process, and technology that help to identify your level of capability and establish the right continuous improvement program specific to your business and, more importantly, your culture. Our approach is a proven methodology to help you move your organization from where it is today to the vision you have for tomorrow.
"The Nine" Dynamics Of
Many business leaders understand the challenges that exist in their organizations. Velocity’s proficiency assessment will attempt to affirm those hypotheses but will also uncover new areas of potential improvement and value that may have previously been overlooked.
Utilizing the 9-Dynamics methodology allows Velocity to deliver a detailed capability gap analysis, recommended improvements, priorities, a directional roadmap and a business case to enable a sustainable Procurement Transformation journey. Our clients value the continuity following the assessment, working collaboratively with Velocity to develop the improvements and deploy the renewed Procurement design while embracing a guided organizational change.
Velocity works with your key business process owners to identify, map, and define where you are, where you want to be, and the actions that will help to bridge any gaps. Velocity then provides detailed recommendations and best practices specific to your business and your industry to take into consideration for the process re-design. Our approach upholds your procurement organization’s structure and provides the basis for Velocity’s transformation services.
Is your existing technology meeting the procurement needs of your organization? Velocity will assess the functionality, process, and procurement scope of your organization to develop recommendations for your current technology or help you assess what will be needed for your optimum future state. This assessment is a useful tool early in the Transformation Journey
Digital transformation will never replace your most valuable resource, your people. The Capability Assessments will provide you with an in-depth understanding of your organization's procurement true maturity and how the people will activate the technology to meet your automation goals. Including this assessment as part of the transformation takes the project to the next level.
As with our clients, you will see tremendous value in the proficiency assessment because it will not only affirm your theories, but will also uncover new areas for improvement you may have not considered previously.
Deploy a balanced procurement scorecard to fully measure value to the organization. Focus is on procurement metrics, supplier metrics, use of data, compliance management and use of benchmarking.
Division of organizational responsibility and it’s operational alignment and effectiveness. Focus is on organizational structure & alignment with business demand, integration with procurement process and staff capability.
Ability to influence corporate change in policy, process and performance. Focus is on mandate vs maverick purchasing, influence of change, level of cross-functional collaboration, team work & values.
Structured oversight including procurement policy and regulatory compliance. Focus on use alignment of corporate strategy, use of formal steering committee, supply chain innovation, integration of best-practices and the procurement operating model.
Formal strategic sourcing process providing a holistic approach to driving cost savings. Focus is on use of spend and category analysis, use of market intelligence, RFx facilitation, formal supplier qualification and negotiations, contract management and line of business integration.
Operationalized procurement process that leverages automation and best-practices. Focus is on the purchase requisition; order process, invoice payment processing and use of automation, utilization of catalogs, supplier portals and other innovative buying techniques.
Formal supplier management program focused on compliance and risk mitigation. Focus is on supplier participation and prioritization, use of strategic alliances, approach to supplier diversity and approach to continuous improvement and innovation.
Review operational and financial planning in order to achieve new supply chain value. Focus is on the use of spend portfolio strategies, strategic vs tactical segmentation and planning, split of direct vs indirect procurement, and…
Operational systems strategies in place with cross-functional business alignment. Focus is on the use of procurement systems, master data management, ERP integration, solutions efficiency and effectiveness.
Capability GAP Report
Our methodology will produce a report that identifies the gaps in procurement capability across the 9 Dynamics. Each capability will compare your existing procurement against the average companies and the leading companies in your industry. This comparison tool will become useful as you determine which areas of your procurement transformation to focus on first.
“An investment in knowledge always pays the best interest.”
― Benjamin Franklin