IMPROVING PROCUREMENT

The Six Dimensions of Procurement

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THE SIX PROCUREMENT DIMENSIONS

Supplier Relationship Management. Examples: Risk

Management, Supplier Assessment Programmes, Lean & Agile.
6 6. Benefits Tracking, Procurement Budget integration, Financial
SRM Reporting.

5 Dealmaking Dealmaking. Examples Top 20, e RFX, Negotiating Capability,

5. Agreement Closure, Value of Agreements, 4 Types of Deal,
Supplier Compliance and SJI.

4 Strategic Sourcing Strategic Sourcing. Examples Product & Service Classification,

4. Lifecycles, Supply Chain Mapping, SIPOC, Sourcing Choices. Single
to Multi-Sourcing, Collaborative Supply Chain.
3
Processes & Tools Processes & Tools. Examples E Marketplace, Reverse Auction.
3. Project Management, P Cards, P2P, MRP/ERP, S&OP & Demand
Management, Tender Pack & Evaluation, PQQ.
2
Customer, Cost & Spend
Customer, Cost & Spend. Examples CRM, Total Cost, Cash
2. Management, 6 Sigma Cost Improvement, Spend Coverage.
1
Leadership & People Leadership & People. Examples Talent Plan, Job Descriptions,
1. Appraisal, Broad Banding, Focus & Goals, Training

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CREATE THE SIX DIMENSIONS MODEL ON YOUR INTRANET

Create an intranet / shared drive Procurement Management system with six main folders & their
sub folders covering all Procurement elements.

z 1. Procurement – Leadership & People

z 2. Procurement – Cost, Cash & Spend

z 3. Procurement – Processes & Tools

z 4. Procurement – Strategic Sourcing

z 5. Procurement – Dealmaking

z 6. Procurement – Supplier & Results Management

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1. LEADERSHIP & PEOPLE FOLDER & SUB FOLDER

1. Leadership & People Folder – Sub Folders Responsibility / Accountability

1.1. Supply / Procurement Organization Structure Procurement Leader

1.2. Job Descriptions / Categories / Responsibilities Procurement Leader

1.3. Career & Succession Plans Procurement Leader

1.4. Quarterly Focus & Smart Goals Procurement Leader / Category Managers

1.5. Six Dimensions Education & Testing Procurement Leader

1.6. QHSE, Regulatory, 6 σ / Lean Training Procurement Leader / Category Managers

1.7. Business Knowledge & Strategy Awareness Procurement Leader / Category Managers

1.8. Values / Results Grid Procurement Leader

1.9. Customer, Stakeholder, Supplier Communication Pack Procurement Leader / Category Managers

1.10. Broadbanding Procurement Leader

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2. CUSTOMER, COST AND SPEND FOLDER & SUB FOLDER

2. Customer, Cost & Spend – Sub Folders Responsibility / Accountability

2.1. Spend & Customer Territory Map (P&L) Procurement Leader / Category Managers

2.2. Cost Centre Management - Budget and Reviews Procurement Leader / Category Managers

2.3. Inventory Management Programme Category Managers / Procurement Leader

2.4. Asset Management Programme Procurement Leader / Category Managers

2.5. Capital Expenditure Procurement Leader / Category Managers

2.6. Lease versus Buy & Asset Register Category Managers / Procurement Leader

2.7. Standardisation / Rationalisation Programme Category Managers / Procurement Leader

2.8. Procurement Budgets Procurement Leader / Category Managers

2.9. Standard Costs Procurement Leader

2.10. Currency Management Category Managers / Procurement Leader

2.11. Key Procurement Projects Category Managers / Procurement Leader

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3. PROCESSES & TOOLS FOLDER & SUB FOLDER

3. Processes & Tools – Sub Folders Responsibility / Accountability

3.1. Procurement Policy, Ethics and Values Procurement Leader / Category Managers

3.2. How to do Business with us – internal & external guide Procurement Leader / Category Managers

3.3. Procurement Terms & Conditions Procurement Leader / Legal / Finance

3.4. Company Authorisation Policy & Limits Procurement Leader / Finance

3.5. Procurement Process - Cost & Efficiency Procurement Leader / Finance

3.6. New Supplier Set Up Process Category Managers / Procurement Leader

3.7. ERP – Requisition 2 Pay Process Procurement Leader / Finance

3.8. e Commerce / e Tender / e Auction Process Procurement Leader / Category Managers

3.9. Procurement Cards Procurement Leader / Finance

3.10. Payment Terms Procurement Leader / Finance

3.11. Procurement Assessment & Internal Audit Procurement Leader / Finance

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4. STRATEGIC SOURCING - FOLDER & SUB FOLDER

4. Strategic Sourcing – Sub Folders Responsibility / Accountability

4.1. Product / Service and Supplier Positioning Category Managers / Procurement Leader

4.2. Global Market Evaluation Category Managers / Procurement Leader

4.3. Sourcing Process Category Managers / Procurement Leader

4.4. Risk Maps and Priorities Category Managers / Procurement Leader

4.5. RFQ’s – Templates and Issues Category Managers / Procurement Leader

4.6. RFQ – Scorecards & Results Category Managers / Procurement Leader

4.7. Tenders, Negotiation – Results Category Managers / Procurement Leader

4.8. Sourcing Plans Procurement Leader / Category Managers

4.9. Sales, Marketing, Negotiation & Meeting Training Procurement Leader / Category Managers

4.10. Insourcing & Outsourcing Procurement Leader

4.11. Total Value Planning Category Managers / Procurement Leader

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5. DEALMAKING - FOLDER & SUB FOLDER

5. Dealmaking – Sub Folders Responsibility / Accountability

5.1. CDA’s Category Managers / Procurement Leader

5.2. Development Agreements Category Managers / Development

5.3. Supply & Service Level Agreements Procurement Leader / Category Managers

5.4. Exploitation, Licence and Royalties Procurement Leader / Legal

5.5. Draft Agreements Procurement Leader / Legal

5.6. Expired Agreements Category Managers / Procurement Leader

5.7. e Auction Outcomes Category Managers / Procurement Leader

5.8. Indirect / Third party deals Procurement Leader

5.9. e Catalogues Category Managers / Procurement Leader

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6. SUPPLIER & RESULTS MANAGEMENT - FOLDER & SUB FOLDER

6. Supplier Management & Results – Sub Folders Responsibility / Accountability

6.1. Complete Supplier Spend & Risk Map Procurement Leader / Category Managers

6.2. Supplier Performance Measures & Reporting Procurement Leader / Category Managers

6.3. Supplier Volume / Pricing Proposals Category Managers / Procurement Leader

6.4. Supplier Total Value Plan Category Managers / Procurement Leader

6.5. Top Supplier Assessment & Performance Maps Procurement Leader / Category Managers

6.6. Supplier Conference and Awards Procurement Leader / Category Managers

6.7. Supplier Intelligence / Quality and Lean Audits Category Managers / Procurement Leader

6.8. Reporting Timetable Procurement Leader

6.9. Procurement Monthly Reports Procurement Leader / Category Managers

6.10. Category Plans, Reports and Benefits Tracking Category Managers / Procurement Leader

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