How to Introduce Successful Initiative Management in Procurement (Part 1)
Currently, many companies in procurement are still focusing on the automation of their operative procurement processes using SRM software modules, such as RfX, e-Procurement, Contract-Management, etc. However, on a strategic level in procurement and initiative management, there is at least a equally great potential for utilization ...
Challenges on a strategic level
Initiative management functions as a central “grip” around all operative systems, activities, and projects in procurement. It is intended to help to depict the company goals (e.g. from a scorecard), to break them down into the performing units, and to put them into operation with clear responsibilities by means of concrete initiatives.
10 Design Criteria for Successful Initiative Management in Procurement
Through modified organizational structures in procurement, the multiplicity of operative SRM systems, their quantities of data (see the image on the right) as well as through increasing globalization and “frequency” of procurement, it is becoming increasingly more difficult for the strategic level (CPO, CFO, Controlling, and Category Management) to maintain an overview or transparency of the following topics:
The New Planning and Control Instrument for CPOs and CFOs
An initiative tool that meets these requirements is an extremely valuable planning and control instrument for the CPO and CFO for achieving a high level of transparency of the activities of the procurement organization on the strategic level and for decisively improving the reliability and forecasting of goal attainment. The following applies:
Modern initiative management is what lacks the most
So what are the reasons and “stumbling blocks” as to why initiative management and controlling still play more of a secondary role in many companies? This question and that of proper “design criteria” will be discussed in brief in the following blog article:
The second part of this article with the 10 “lessons learned” for the establishment of initiative management is already in the works and will be published on this blog soon. Write to use if you would like us to notify you per e-mail: Contact us.
And this is your next step
We would be happy to offer you a personal online presentation on this topic or invite you to our seminars.
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.
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