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Procurement Organization Maturity Model

The document outlines a 5-level procurement organization maturity model. Level 1 organizations have an administrator role that reacts to needs and complaints. Level 2 has an advisor role that shops for best prices reactively. Level 3 enables processes to influence preferred supplier treatment reactively. Level 4 is process-focused and proactive, aiming for total economic value. Level 5 creates competitive advantages through automated tools and proactive processes to be a market leader.

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495 views1 page

Procurement Organization Maturity Model

The document outlines a 5-level procurement organization maturity model. Level 1 organizations have an administrator role that reacts to needs and complaints. Level 2 has an advisor role that shops for best prices reactively. Level 3 enables processes to influence preferred supplier treatment reactively. Level 4 is process-focused and proactive, aiming for total economic value. Level 5 creates competitive advantages through automated tools and proactive processes to be a market leader.

Uploaded by

edoelric1
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

procurement organization maturity model

Level 1 2 Maturity Beginner Basic Typical Activities/ Characteristics


Administrator. Issue POs. Make it safe and easy to buy things. Reactive environment. Value measured by tolerable level of complaints. Advisor. Shop the world. You have commodity knowledge. You understand costs and technology. You make good decisions aligned with enterprise needs. Primarily reactive environment. Value measured by period-to-period price takedowns. Process Enabler. Influence suppliers to get preferred treatment. You understand costs, availability, market trends, risk. Preferred treatment is managed as a process. Primarily reactive environment. Value measured by period-to-period price takedowns. Contributing Partner. Process focused, tool enabled environment. Worldwide access to suppliers for materials and services. Decisions are well-thought out and holistic in context. Primarily pro-active environment. Value measured by total economic value. Competitive Differentiator. Create clear and defined competitive advantages for enterprise enabled by automated tools and processes. Pro-active environment. Value measured by total economic value created.

Results
Understand total spend. Price at or above market Understand total spend and market opportunities. Price at or below market. No surprises. Excellent price (better than market) and assurance of supply. Better total costs.

Competitive

Leader

World Class

Leader in market.

e3 associates proprietary 2004

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