Compiling the procurement function

Emeritor is involved on a daily basis in arranging procurement functions and therefore possesses the most up-to-date knowledge in this field. The Emeritor House of Procurement®, the MSU-model and the Emeritor Procurement Maturity Model® (see also approach) make up an important guidance. We can advise you in this matter or we can execute it together with you.

Depending on the current situation:

  1. A qualitative and financial analysis will be executed and a plan of improvement with possible improvements and saving potentials will be developed in a business case.
  2. The execution of Quick Wins and selected procurement packages and composition projects in order to realise procurement savings and improvements, will be filled in.

Presentation

Based on the organisation’s strategy and the qualitative and financial analysis, our first conclusions will be discussed in order to validate and brainstorm with the most important players. Subsequently we present you with a Plan of Action which includes our findings, recommendations, potential savings and improvements. Emeritor uses a practical and pragmatic approach that matches the customers’ culture and its desired approach to customers and suppliers. We make use of Emeritor’s House of Procurement® and Emeritor’s Procurement Development Model structure, whereby we fill in the differences in the development of parts of your organisation regarding the procurement function and market dynamics.

Quick Wins and projects

After acceptance of the recommendations the continuance of the program will be compiled in accordance. First of all, the major procurement products, which are to be developed into projects plans, are chosen. These are:

  1. Quick win savings, projects which lead to purchasing results in the short term (6 to 8 weeks). In this case the purchasing results often come from the supplier. By negotiation, better buying conditions and better prices are accomplished.
  2. Projects regarding procurement packages have a lead time of 8 to 16 weeks. Hereby the entire purchasing cycle is completed.  For the chosen procurement packages the information from the quantitative analysis is elaborated in more detail and in multidisciplinary project teams with representatives from organisational divisions, in order to execute the 8-steps from the project plan together, according to “Teamwork in the Supply chain”.
  3. Structure projects have a lead time of 12 to 16 weeks and will be presented to the procurement-structure-group to be executed. They create the requirements for structural optimisation of procurement and will be completed when the program is in process.

Hereby you can think of:

  • Compiling procurement function and steering committee;
  • Communication as part of change management;
  • organisational culture of the procurement function, roles and responsibilities;
  • Assessment of the current level of ‘procurement staff’;
  • Educate and recruit procurement staff.

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