Before beginning to draft a high-level strategic document in which to outline the institution's future strategic procurement direction, it is recommended that you:
- Consider the different types of procurement function and take stock of the institution’s current procurement structure and the level of professional procurement influence it has over its procurement (and purchasing) function.
- Make an assessment of whether the current methods of working are providing the desired value for money, addressing areas of risk and meeting the ever-demanding needs of a complex organisation, and
- Determine how the issues raised in these assessments should be addressed in the strategic document.
The assessment may highlight an issue that is so serious that it is necessary to make an immediate, fundamental change in the institution's method of operation. An example of this was the number of organisations in the late 1990's that replaced or updated computer systems to deal with year 2000 concerns. Alternatively, an issue may be better managed by an incremental approach, for example, an intention to rationalise the institution's supplier base.
There are a number of ways to help you determine where your institution is and to help highlight areas that need to be addressed:
- IBIS - Integrated Benchmarking Information System - a model, to be used annually, to help review the institution's current suppliers and the general commodity areas they supply. This analysis can help you identify areas of concern and help you determine where to focus resources in the short to medium term.
- Transactional Analysis - simple measures of transactions, value and volume to help determine the best use of staff time.
- Self Assessment Exercise - a simple spreadsheet model to help determine your institution's current and desired, future, procurement structures
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