Integrating Strategies, Levers, and Methods in Procurement PPT
This PPT slide, part of the 24-slide Purchasing Chessboard PowerPoint presentation, presents a comprehensive framework known as the Purchasing Chessboard, which integrates 3 critical layers: strategies, levers, and methods. The top layer outlines 4 primary purchasing strategies aimed at optimizing procurement processes. These strategies include changing the nature of demand, managing spend, seeking joint advantages with suppliers, and leveraging competition among suppliers. Each strategy serves as a guiding principle for the subsequent layers.
The second layer consists of 16 levers that operationalize these strategies. For instance, under the strategy of managing spend, levers such as innovation breakthrough, risk management, and demand management are highlighted. These levers represent specific areas where organizations can focus their efforts to enhance procurement effectiveness.
The third layer dives deeper into execution, showcasing 64 methods that can be employed to implement the identified levers. This granular approach allows organizations to select tailored methods based on their unique circumstances. For example, methods under risk management include cost analysis and compliance management, while those under demand management feature techniques like volume bundling and sourcing commitments.
The visual structure of the slide effectively illustrates the hierarchical relationship between strategies, levers, and methods, enabling executives to grasp how various components interconnect. This framework not only aids in strategic planning, but also serves as a practical guide for procurement teams to drive value through informed decision-making. Understanding this framework can empower organizations to refine their procurement strategies and enhance overall operational efficiency.
This slide is part of the Purchasing Chessboard PowerPoint presentation.
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Procurement Strategy Supplier Negotiations Strategic Planning Risk Management Cost Analysis Innovation Compliance
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