This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Purchasing Chessboard PPT: Explore 64 proven methods to reduce costs and boost supplier value. Download this procurement framework to optimize your sourcing strategy. Purchasing Chessboard is a 24-slide PPT PowerPoint presentation slide deck (PPT) available for immediate download upon purchase.
The procurement strategies at many organizations lack the flexibility to adapt to radical changes occurring today. Gone are the days when organizations could have managed supply markets using relatively simple tools and techniques—e.g. RFIs, RFPs, bundled products and services, and multi-year contracts etc. Markets, nowadays, are disparate and expect vastly different methods to operate.
To endure the procurement challenges of this age, the Purchasing Chessboard is a broad framework, developed by A.T. Kearney, to address almost any supply and demand market condition. The Purchasing Chessboard is a compilation of insights and experience from thousands of purchasing projects performed worldwide.
This slide deck provides a detailed description of the 4 purchasing strategies under the Purchasing Chessboard and a high-level view of the framework’s implementation. The 4 critical purchasing strategies include:
1. Leverage competition among suppliers
2. Seek joint advantage with suppliers
3. Change the nature of demand
4. Manage spend
Within the Purchasing Chessboard framework, we further break down the 4 purchasing strategies into 16 levers and further into 64 methods. All the 64 standalone methods in the Purchasing Chessboard present a unique differentiating tactic to work with suppliers to reduce costs and increase value. Each method maps to a specific lever, which maps to a specific strategy.
The presentation deck also includes some slide templates for you to use in your own business presentations.
This comprehensive presentation also delves into the practical implementation of the Purchasing Chessboard, offering a 5-step approach to effectively categorize and apply strategies. It emphasizes the importance of cross-functional team involvement and continuous strategy adjustment to align with market dynamics. The PPT includes detailed templates to facilitate your own procurement strategy development and execution, ensuring you have the tools needed to drive cost reduction and value creation in your supply chain operations.
This PPT slide outlines a five-step implementation process for the Purchasing Chessboard, a strategic tool for enhancing purchasing effectiveness. The first step involves identifying and defining relevant purchasing categories, establishing focus areas. The second step applies tailored purchasing strategies to these categories, aligning actions with organizational goals. The third step reviews the competencies of the purchasing function, assessing current capabilities and identifying gaps for effective category management. The fourth step emphasizes involving cross-functional team members to leverage diverse expertise for informed decision-making. Finally, the process requires updating categories on the Purchasing Chessboard and adjusting strategies, ensuring relevance and effectiveness in a changing environment. This structured approach provides a roadmap for optimizing purchasing strategies.
The Purchasing Chessboard framework enhances procurement strategies through 16 levers derived from 4 core strategies: "Change nature of demand," "Manage spend," "Seek joint advantage with supplier," and "Leverage competition among suppliers." Under "Manage spend," levers like "Innovation breakthrough," "Risk management," and "Demand management" optimize expenditure and resource allocation. "Seek joint advantage with supplier" focuses on collaboration, featuring levers such as "Value chain management" and "Cost partnership" to foster partnerships that improve efficiencies and cost savings. "Leverage competition among suppliers" drives down costs with levers like "Tendering" and "Supplier pricing review," emphasizing competitive bidding and regular pricing assessments. This structured approach aids procurement professionals in navigating complex purchasing decisions, highlighting strategic thinking and collaboration for operational efficiencies.
The Purchasing Chessboard framework integrates 3 layers: strategies, levers, and methods. The top layer outlines 4 primary purchasing strategies: changing demand, managing spend, seeking joint advantages with suppliers, and leveraging supplier competition. The second layer features 16 levers that operationalize these strategies, such as innovation breakthrough and risk management under managing spend. The third layer presents 64 methods for executing these levers, including cost analysis and compliance management for risk management, and volume bundling for demand management. This hierarchical structure illustrates the interconnection between strategies, levers, and methods, enabling procurement teams to refine strategies and enhance operational efficiency.
The "Purchasing Chessboard" framework addresses buyer-supplier dynamics when both parties possess equal market power, emphasizing that equal power alone does not guarantee sustainable cost or value benefits. The goal is to cultivate collaborative partnerships that enhance the value chain through joint management and integrated operations planning. Key procurement levers include Value Chain Management, Value Chain Partnership, Integrated Operations Planning, and Cost Partnership. Specific methods like Value Chain Reconfiguration, Supplier Tiering, Profit Sharing, and Strategic Alliance are highlighted to drive efficiency in supplier relationships. These frameworks facilitate alignment of operational strategies and cost structures, fostering synergy and innovation for cost optimization and shared benefits, ultimately leading to long-term strategic alliances.
This PPT slide presents a framework for Smart Spend Management within strategic procurement, particularly beneficial in low-demand, low-supply markets like maintenance, repair, and operations. It leverages 4 key procurement levers: Co-sourcing, Demand Management, Commercial Data Mining, and Volume Bundling. Co-sourcing enhances sourcing effectiveness through collaboration, while Demand Management controls demand via compliance and contract management. Commercial Data Mining extracts insights from procurement data, and Volume Bundling consolidates purchases for better pricing. The slide outlines 16 methods under these levers, including Compliance Management and Supplier Consolidation, emphasizing data-driven approaches like Cost Data Mining and Spend Transparency to optimize procurement strategies and reduce costs while increasing value.
The Purchasing Chessboard framework outlines 64 methods to enhance procurement strategies, categorized by their effectiveness in reducing costs and increasing value. The vertical axis represents supply power (low to high), while the horizontal axis indicates demand power (low to high). Methods like "Invent on demand" and "Leverage innovation network" are positioned at the high supply and demand power intersection, emphasizing proactive sourcing through innovation and supplier collaboration. In contrast, "Demand reduction" and "Contract management" focus on traditional, reactive strategies in lower grid sections. These methods can be applied individually or in combination, allowing organizations to tailor procurement strategies to specific market conditions and supplier relationships. The Purchasing Chessboard serves as a guide for optimizing procurement processes, enabling significant cost savings and enhanced supplier collaboration.
Source: Best Practices in Procurement, Strategic Sourcing, Sourcing Strategy PowerPoint Slides: Purchasing Chessboard PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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