Design and deploy processes and systems that deliver highly effective Commodity Use Forecasting and Planning, Market Analysis, Supplier Evaluation, Sourcing Strategy Development and Execution, Contract Implementation and Management, and Supplier Management capability.
The Intuitivum Approach
For most organizations, this is the right place to start. Low hanging fruit in this area will always deliver quick hits and show that the procurement organization understands how to add value to the bottom line.
Strategic Sourcing is an organized and collaborative approach to leverage spend across commodities with select suppliers that are best suited to meet the organization’s needs. Strategies must be aligned with the company’s goals and across all business units. An effective sourcing strategy optimizes quality, technology, cycle time, delivery, reliability, performance, profitability and price.
As in other areas, the Intuitivum Group has management systems standards that set minimum expectations as to how strategies are developed and what they should include. These documents are also used as a basis for supporting client organizations when they develop standardized practices for their own organizations. At the top level, these documents include significant coverage of:
- Strategic Sourcing Oversight – documents needed executive sponsorship, managerial oversight, and client engagement in sourcing strategy development and execution.
- Forecast and Plan – ensures that commodity forecasts and plans are documented and maintained for all strategic or leveraging commodities.
- Commodity Market Analysis – ensures that the market for the commodity is well understood and methods for leverage are determined.
- Supplier Evaluation – ensures that potential suppliers for the commodity are determined and the list is reduced to a limited few that can successfully meet the needs.
- Sourcing Strategy Development – ensures that sourcing strategies are developed and maintained for all commodities according to their respective priority.
- Sourcing Strategy Execution – sets minimum requirements for strategic sourcing plan execution.
- Contract Implementation – ensures that the contract owner implements the contract effectively, including appropriate communication of the contract terms and requirements with Key Stakeholders and other appropriate personnel who are responsible for administering the contract requirements.
- Contract Management – ensures that safekeeping, tracking, and monitoring of original contract documents are in accordance with company requirements.
- Contract Compliance and Utilization – ensures contract compliance and appropriate utilization
Standards, Procedures, and Benchmark Protocols in this area include:
Procurement Management Processes
Organization Performance Management
Strategic Sourcing – Strategic Sourcing Oversight
Strategic Sourcing – Forecast and Plan
Strategic Sourcing – Commodity Market Analysis
Strategic Sourcing – Supplier Evaluation
Strategic Sourcing – Strategy Development
Strategic Sourcing – Strategy Execution
Strategic Sourcing – Contract Implementation
Strategic Sourcing – Contract Management
Strategic Sourcing – Contract Compliance and Utilization
Benchmark and Audit Protocols
Procurement Management Standards and Procedures
Procurement Organization Design
Organization Effectiveness and Development Needs