Understand where you are compared to your peers and performance leaders, set your vision of where you want to be based on total return on investment, and build strong execution plans that include near term quick hits and longer term differential improvement.

Click here to review a sample Procurement Transformation Value Report which is based on one of our assessments.

Do you know your current process capability and the potential return on investment for a procurement transformation?

We have proven process maturity model based methods and benchmarking techniques to help you understand your current level of performance compared to best in class organizations. We’ll work with you to create a transformation plan based on this assessment with a target to implement known, highly effective, procurement practices while meeting your total cost of ownership expectations. We’ll also help you execute this plan, ensuring that you deliver both near term quick hits and longer term differential improvement.

Our assessment of your performance and recommendations for future targets will cover all aspects of your processes and systems including the organization design, organization performance, transactional processes effectiveness, strategic sourcing capability, and relationship management activities. Additionally, your performance level will be set based on a maturity model that is aligned with the best models available:

 Level 0 Process Icon

Level 0 (Survival)

No concept of processes. Just get it done.

 Level 1 Process Icon

Level 1 (Ad-Hoc)

Some local processes are in place, but firefighting still rules the day.

 Level 2 Process Icon

Level 2 (Localized)

Local processes are defined and managers work within a process framework.

 Level 3 Process Icon

Level 3 (Aligned)

Processes are employed with strategic intent. Intra-company cooperation is in place.

 Level 4 Process Icon

Level 4 (Integrated)

The organization structure is process based, intra-company processes are fully integrated and inter-company processes begin to be integrated.

 Level 5 Process Icon

Level 5 (Optimized and Extended)

Advanced process practices take hold. Process integration and collaboration with external partners is routine.

 

After your assessment, you will have a complete understanding of your process and systems maturity compared to your peers, knowledge of what is achievable over the next several years, and a solid view of the cost and value of the transformation you are expecting to make.

Maturity Chart

Click here to see a printable version of this page.

Detailed information on the value you can deliver with a procurement transformation and other information on our procurement services can be found at the following links:

Procurement Process Benchmarking

How can the Intuitivum Group accelerate my Procurement Transformation?

Procurement Transformation isn’t easy. If you are like most procurement leaders, you’ve already started a strategic sourcing effort to get quick savings, but you’re finding it hard to figure out what to do next. Do I improve my IT systems to gain efficiency and reduce errors? What if I focus on cleaning up my master data to better understand and control my spend? Should I modify my processes to align them with those I know to be highly effective? Do I focus on changing my organization and improving my staff capability? By now, you’ve probably concluded that you will need to do all of this and more, but you’re struggling to prioritize your efforts.

Procurement Transformation Value

What is the short version of how a procurement transformation will improve my variable and fixed costs?

A procurement transformation effort can reduce your costs significantly. For a typical implementation, you will see annual cost savings of 4 to 9% on your services and materials spend. You will also capture fixed cost savings of 20 to 30%. With normal program execution costs equal to 1 to 2% of one year of spend, depending on your organization’s size and current capabilities, most procurement organizations will break even during the third year of program execution.

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