Planning, Managing, and Measuring Procurement Success Using Degrees of Implementation
Procurement projects or initiatives often used to be managed with simple Excel templates. Now, there is special software for project management in strategic procurement. The underlying idea is to apply ideas for savings success as procurement initiatives or projects and to plan them…
Tight project management – realizing more savings
Throughout the course of the described sourcing initiatives, the projects perambulate various degrees of implementation or milestones. The planned savings solidify further until they are finally actually measureable using the actual data in the form of order, invoices or offers.
Diagram 2 shows one example for a pipeline with the degrees of implementation in the columns and the savings types in the rows.
Pipeline of the planned sourcing initiatives - incl. degree of implementation & savings KPI’sDiagram 2: Pipeline of procurement initiatives according to degrees of implementation
From a procurement project to the individual activities
Diagram 3 shows an example for activities and initiatives within a procurement initiative. Each procurement initiative follows specific degrees of implementation or milestones.Diagram 3: Degrees of implementation: Definition of initiatives and activities of an initiative
The Savings Pipeline
A savings pipeline systematically designed and progressively cared-for in this manner allows strategic procurement to find answers to numerous questions, such as:
- Which purchasers are currently working on which topics or projects?
- Have any initiatives already been executed for individual categories? (gap analysis)
- Are the best strategic purchasers also collaborating with the monetarily most importance initiatives? (capacity analyses)
- How great are the planned savings in the individual periods? (savings pipeline)
- With what probability can the savings be measured depending on the degree of implementation? (measured savings pipeline)
- Why were certain savings not capable of being achieved? (cause analysis)
- Which savings levers have been proven in practice?
- How is procurement success divided into the units of the procurement organization?
- And much more
We offer you a holistic solution for increased transparency, potential analyses and measuring your procurement success regarding indirect purchasing with our DataCategorizer, SpendControl and InitiativeTracker modules.
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In this blog you will find expert knowledge about initiative management and project management in strategic procurement. InitiativeTracker is a software for planning and monitoring your sourcing initiatives, controlling your procurement organization and measuring your procurement performance.