Assessment of Procurement Capability
The second step in transformation is to compare existing capability of your procurement function.
At Velocity, our belief is that true transformation requires a cultural shift driven by behavioral change in your organization. Our 9-Dynamics approach is a proven methodology to help you move your organization from where it is today to the vision you have for tomorrow. Velocity has established world-class benchmarks on the 9 key dynamics of successful Procurement organizations. Our cross-industry experience and market analysis have determined the people, process, and technology aspects that determine a company’s level of maturity.
"The Nine" Dynamics of Procurement Proficiency
Our Procurement Proficiency Assessment, using the 9-Dynamics methodology delivers a detailed capability gap analysis, recommended improvements, priorities, directional roadmap and business case to enable sustainable Procurement Transformation. Following the assessment, actually developing the improvements and deploying the renewed Procurement environment is what creates change.
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.
Our Proficiency Assessment
We work with your key business process owners for each of the 9-Dynamics to define where you are today, where you want to be tomorrow, and the actions that will bridge any gaps. These 9-Dynamics are the foundations that support your organization and mirror the solutions that form the basis of Velocity’s transformation services.
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