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HIGHLIGHTS
DOCUMENT DESCRIPTION
The Procurement function has advanced tremendously since 1980s. Starting with fulfilling a simple "buyer" function in the 1980s, to now playing a strategic role in prominent organizations. Procurement has come a long way over time and continues to grow increasingly sophisticated.
This PowerPoint presentation discusses a 3-phase Procurement Maturity Model, capturing how the Procurement function evolves from a transactional, centralized function, focused on Cost Reduction, to a strategic function, embedded within the business units, and a driver to Competitive Advantage. Each developmental procurement stage is marked by specific characteristics and milestones.
The 3 developmental phases of the Procurement Maturity Model are:
1. Inception – The first developmental phase is typically symbolized by centralization and a low level of trust in the Procurement system.
2. Development – At the Development stage, senior management (CEO, CFO and CPO) understands the importance and the need for change, and endorse the way forward, for Procurement to evolve into a strategic function
3. Agility – By this stage, Procurement & Sourcing resources and processes are integrated into the business so that they lie close to the pulse of the organization. Procurement best practices are truly embedded in the organization’s culture and business functions, in the form of a continuous cycle.
These sourcing maturity stages are discussed in depth within this framework presentation. By understanding the nuances of this Procurement Maturity Model, we can conduct a Procurement Maturity Assessment. Furthermore, this 3-phase approach can be leveraged as a Procurement Transformation framework, as the series of transformations from one stage to the next significantly increase the ROI of the Procurement & Sourcing function.
Additional topics discussed in this Sourcing Maturity Model presentation include the "Push" model, "Pull" model, "Embedded" model, among others.
This deck also includes slide templates depicting the 3-phase Procurement Maturity Model, Procurement Maturity Model Curve, Push Model, Pull Model, and Embedded Model for you to use in your own business presentations.
Got a question about the product? Email us at flevypro@flevy.com. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Procurement, Maturity Model PowerPoint Slides: Procurement Maturity Model PowerPoint (PPT) Presentation, LearnPPT
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DETAILS
This business document is categorized under: Business Framework Primers
File Type: PowerPoint (ppt)
Tag(s): Procurement Maturity Model
Number of Slides: 22 (includes cover, transition, & marketing slides)
Purchase includes lifetime product updates. After your purchase, you will receive an email to download this document.
Upload date (first version): Oct 5, 2017
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