WHAT GOOD PROCUREMENT GOVERNANCE LOOKS LIKE
Strategy · Procurement has formal and measurable targets. · The role of procurement is considered strategic. Procurement contributes to innovation, speed to market, profitability and the overall growth of the organisation. · A central procurement function is responsible for most, if not all, third-party spend on products and services. · There is clear accountability, roles and responsibilities in procurement e.g. RACI. · A clear procurement policy is in place, is regularly updated, is mandated and is monitored for compliance across the organisation. · There is a procurement programme in place with specific targets and milestones. Process · Procurement processes are documented, regularly updated and communicated across the organisation. · Standard templates are readily available for use by internal stakeholders. · The performance of procurement is formally measured by KPIs, internal stakeholders and suppliers. · Collaboration with other functions is routine practice to ensure that objectives and activities are aligned. People · Procurement-related objectives are included in people’s personal development plans (PDPs). · A skills development diagnostic is conducted to identify the training needs of the procurement team. · A training programme is designed to address the capability gaps of the team and assist in the execution of the procurement strategy. · There is a well-managed career path for procurement team members. · Resources are sufficient to execute the procurement strategy.
Strategy
Procurement Governance
Process
People
Technology
Technology · Technology is used to make procurement processes, tools and templates readily available to both the procurement team and other stakeholders. · The technology architecture for procurement is reviewed and a technology roadmap is designed to support the execution of the procurement strategy. · Technology is used as a change agent in procurement transformation projects. · Technology is used to enable the implementation of efficient processes, not make up for non-existent or inadequate processes.
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