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									Strategic Process 1
Insourcing/outsourcing decision
General description                                      Various aspects    Notes                                                                                                                               0 (N/A)             1                   2                  3                  4                   5                   6                     7                 8                    9                   10
Making a strategic choice between insourcing (in 1.1 Documentation          Records of the decision-making process used to reach a specific decision.                                                                     Little or no        Little evidence of                                                              Recording of the      Evidence of a                         Explicit
house) or outsourcing. Outsourcing refers to                                                                                                                                                                              evidence of a       a structured                                                                    reasoning             structured                            recording of
processes that were originally performed in house,                                                                                                                                                                        structured          implementation                                                                  behind this           implementation                        results based on
but are now carried out by an external supplier (for                                                                                                                                                                      decision making     process                                                                         objective             process                               evaluation
a more detailed definition and examples refer to                                                                                                                                                                          process                                                                                             analysis
the MSU+ model)
                                                     1.2 Strategy           Is the decision based on a long term strategy or short term objectives.                                                                                           Short term                              Short and long
                                                                                                                                                                                                                                              objectives                              term strategy
                                                  1.3 Cost/benefit          Complete a costs/benefits analysis on the basis of political and/or legal risk, time, costs, capacity, know-how, etc. required to                                 Decision based                                                                  Decision based
                                                      analysis              carry out the activities within the organisation.                                                                                                                 on a limited                                                                    on integral set of
                                                                                                                                                                                                                                              number of                                                                       evaluation criteria
                                                                                                                                                                                                                                              evaluation criteria

                                                  1.4 Information           Use of internal and/or external information for decision making (external information such as that originating from suppliers or                                  Internal              And external      Benchmark
                                                                            general market information)                                                                                                                                       information           information       studies if
                                                  1.5 Team composition      Functional or multi-disciplinary team that will reach a decision (a multi-disciplinary team includes employees from both                                          Multi-disciplinary                                                                                                                                             Multi-disciplinary
                                                                            purchasing and other disciplines)                                                                                                                                 team                                                                                                                                                           decision making
                                                                                                                                                                                                                                                                                                                                                                                                             process that
                                                                                                                                                                                                                                                                                                                                                                                                             includes others
                                                                                                                                                                                                                                                                                                                                                                                                             outside the
                                                  1.6 Supplier              Use of market research and assessment to identify potential suppliers (in the case of insourcing, including associated public                                                                             Do short and        Identification of
                                                                            organisations)                                                                                                                                                                                            long term           potential
                                                                                                                                                                                                                                                                                      strategy and        suppliers on the
                                                                                                                                                                                                                                                                                      capacities          basis of market
                                                                                                                                                                                                                                                                                      involve the         research and
                                                                                                                                                                                                                                                                                      current supplier    supplier
                                                                                                                                                                                                                                                                                      in the decision     evaluation (also
                                                                                                                                                                                                                                                                                      making process?     take into account
                                                                                                                                                                                                                                                                                                          the strategy and
                                                                                                                                                                                                                                                                                                          capacities of

                                                  1.7 Approach to           From ad hoc decision making to a more structured decision making process, with systems in place to deal with various aspects                  Ad hoc approach Systematic
                                                      decision making       including risk management.                                                                                                                    to decision     decision making
                                                                                                                                                                                                                          making process process
                                                                                                                                                                                                                          depends on
                                                                                                                                                                                                                          specific key

                                                  1.8 Primary/secondary Differentiation of core and non-core competencies                                                                                                                     Decision making                         Takes into                                                                                                             Evaluation of core
                                                      activities                                                                                                                                                                              process based                           account current                                                                                                        competencies on the
                                                                                                                                                                                                                                              on differentiation                      and future                                                                                                             basis of cross-border
                                                                                                                                                                                                                                              between core                            requirements                                                                                                           insight (internal,
                                                                                                                                                                                                                                              and non-core                                                                                                                                                   clients, suppliers
                                                                                                                                                                                                                                              competencies                                                                                                                                                   and other public
                                                  1.9 Assessment/evalu      Comparing actual performance against objectives using measuring instruments and performance indicators. This should also                      Few or no                                                                                           Evaluation                                                  Formal
                                                      ation process         include the methods by which outsourced activities are monitored and supervised.                                                              measuring                                                                                           process of all                                              evaluation
                                                                                                                                                                                                                          instruments/perfo                                                                                   cost elements                                               process based
                                                                                                                                                                                                                          rmance                                                                                              before and after                                            on objectives
                                                                                                                                                                                                                          indicators                                                                                          insourcing/outso                                            (including
                                                                                                                                                                                                                          (before/after)                                                                                      urcing.                                                     analysis of
                                                                                                                                                                                                                                                                                                                              Assessment                                                  initiatives and
                                                                                                                                                                                                                                                                                                                              based on                                                    corrective
                                                                                                                                                                                                                                                                                                                              objectives                                                  measures where

                                                  1.1 Implementation        Structured implementation of insourcing or outsourcing. Implementation is structured if the outsourced/insourced tasks are clear              Ad hoc crisis       Little evidence of                                                                                    Implementation     Formal
                                                  0   process               for the organisation and the supplier and have been recorded in outsourcing/insourcing agreements. The outcomes for the                       related             a structured                                                                                          process is         implementation
                                                                            internal organisation must also be clear.                                                                                                     implementation      implementation                                                                                        structured.        process and the
                                                                                                                                                                                                                                              process                                                                                               Defined            outcomes for the
                                                                                                                                                                                                                                                                                                                                                    outsourcing/inso   internal
                                                                                                                                                                                                                                                                                                                                                    urcing             organisation are
                                                                                                                                                                                                                                                                                                                                                    agreement          clear
                                                                                                                                                                                                                                                                                                                                                    available. Some
                                                                                                                                                                                                                                                                                                                                                    objectives have
                                                                                                                                                                                                                                                                                                                                                    been defined.
                                                  1.1 Involvement of     The degree to which purchasing expertise is involved in the decision making process, implementation and evaluation                               Purchasing                                Purchasing                                                Purchasing
                                                  1   purchasing experts                                                                                                                                                  expertise not                             expertise                                                 expertise is also
                                                                                                                                                                                                                          involved or only                          involved as                                               involved in
                                                                                                                                                                                                                          in/during                                 information                                               general
                                                                                                                                                                                                                          implementation                            source with                                               commercial
                                                                                                                                                                                                                                                                    regard to                                                 considerations
                                                  1.1 Communication         Communication about insourcing and outsourcing with internal and external stakeholders                                                        No                  Communication                           Communication                           An extensive                                                And
                                                  2                                                                                                                                                                       communication       only within the                         between                                 communication                                               communication
                                                                                                                                                                                                                                              project                                 departments,                            plan that                                                   on
                                                                                                                                                                                                                                                                                      within the entire                       includes various                                            insourcing/outso
                                                                                                                                                                                                                                                                                      organisation                            internal                                                    urcing with the
                                                                                                                                                                                                                                                                                                                              stakeholders                                                suppliers market
                                                  1.1 Legislation and       The extent to which there is evidence that, when making a decision on insourcing or outsourcing, legislation and regulations                  No evidence of      Some evidence         Evidence of                                                                                        Evaluation of
                                                  3   regulations           such as EU tendering guidelines are sufficiently taken into account (appropriate and in accordance with the law)                              adequate            of attention to       compliance with                                                                                    compliance with
                                                                                                                                                                                                                          attention to        legislation and       legislation and                                                                                    legislation and
                                                                                                                                                                                                                          legislation and     regulations           regulations                                                                                        regulations
                                                                                                                                                                                                                          regulations                                                                                                                                  within framework
                                                                                                                                                                                                                                                                                                                                                                       of the
                                                                                                                                                                                                                                                                                                                                                                       urcing decision

                                           1.1 External       The extent to which partnerships with external parties have been considered (including public private partnerships, but also                      Little or no                              Careful                                 Formal                                                         Decision making
                                           4   partnerships   between authorities if outside the legal entity of the organisation). A considered decision is made on the basis of a clear                       attention to                              consideration                           considered                                                     about
                                                              understanding of various insourcing/outsourcing options and understanding of the most suitable option, using specific methods                     external                                  has been given                          decision making                                                partnerships
                                                              and approaches.                                                                                                                                   partnerships                              to external                             on whether or                                                  with suitable
                                                                                                                                                                                                                                                          partnerships                            not to form                                                    parties is
                                                                                                                                                                                                                                                                                                  partnerships                                                   evaluated
                                                                                                                                                                                                                                                                                                  with suitable

Summary                                                                                                                                                                                       The process       Little or no         Systematic,          As 2, but based     As 3, but based     As 4, but            As 5, where          As 6, and there      There is a formal   As 8, but there is   Multi-disciplinary
                                                                                                                                                                                              does not apply    evidence of the      multi-disciplinary   on internal and     on current and      decisions on         decisions on         is evidence of a     decision making     also a formal        decision making
                                                                                                                                                                                              to the            presence of a        decision-making      external            future              insourcing/outso     insourcing/outso     structured           process for         high level           process that
                                                                                                                                                                                              organisation or   structured           process around       information.        requirements:       uring are not        urcing have          implementation       insourcing/outso    process for          transcends the
                                                                                                                                                                                              part of the       decision making      core and non-        Purchasing is       decisions have      solely based on      clearly been         process. Clearly     urcing and a        assessing/evalua     organisation:
                                                                                                                                                                                              organisation      process for          core                 integrated in the   clearly been        knowledge of the     based on             defined              formal              ting the results     assessment of the
                                                                                                                                                                                                                insourcing or        competences,         decision making     taken on the        short/long term      cost/benefit         outsourcing          implementation      on the basis of      core competences
                                                                                                                                                                                                                outsourcing. An      based on             process as an       basis of the        strategy of          analyses that        contracts are        process. The        objectives           with no distinctions
                                                                                                                                                                                                                ad hoc approach      internal             information         organisation's      current suppliers    use an               available that       outcomes for the    (including           between the various
                                                                                                                                                                                                                is employed.         information,         source for          strategy and with   and their            integrated set of    cover all relevant   internal            analysis of          parties (internal,
                                                                                                                                                                                                                Specific crisis-     cost/benefit         knowledge of the    knowledge of the    skills/qualities,    assessment           aspects. Some        organisation are    initiatives and      clients, suppliers).
                                                                                                                                                                                                                related decision     analyses based       current supplier    short and long      but also on          criteria. There is   terms of             clear. In           any corrective
                                                                                                                                                                                                                making and           on a limited         base. Evidence      term strategy of    those of potential   a clear picture of   reference have       addition, the       measures).
                                                                                                                                                                                                                implementation       number of            of compliance       current suppliers   suppliers.           all costs and        been formulated.     extent of           Results are
                                                                                                                                                                                                                may                  assessment           with legislation    and their           Potential            there is a                                compliance with     explicitly
                                                                                                                                                                                                                occasionally         criteria and short   and regulations.    skills/qualities    suppliers have       process for                               legislation and     recorded.
                                                                                                                                                                                                                take place           term goals. Little   Careful             (with the           been identified      evaluating all                            regulations is      Communication
                                                                                                                                                                                                                depending on         evidence of a        consideration       possible addition   by purchasing        cost elements                             evaluated to        on
                                                                                                                                                                                                                the key persons      structured           has been given      of benchmark        market research      before and after                          enable decisions    insourcing/outso
                                                                                                                                                                                                                involved. Driven     implementation       to external         studies).           and supplier         insourcing/outso                          to be taken         urcing also takes
                                                                                                                                                                                                                by capacity          process.             partnerships.       Communication       assessment.          urcing. The                               about               place with the
                                                                                                                                                                                                                considerations.      Communication                            takes place         There is             reasoning                                 insourcing/outso    suppliers market.
                                                                                                                                                                                                                Few or no            only takes place                         between the         evidence of          behind this                               urcing. Decision
                                                                                                                                                                                                                measuring            within the                               departments         compliance with      objective                                 making about
                                                                                                                                                                                                                instruments/perfo    project. There is                        within the total    legislation and      analysis has                              partnerships
                                                                                                                                                                                                                rmance               little evidence of                       organisation.       regulations and      been recorded.                            with suitable
                                                                                                                                                                                                                indicators           attention to                                                 formal               There is                                  parties is also
                                                                                                                                                                                                                (before/after).      legislation and                                              considered           evidence of clear                         evaluated.
                                                                                                                                                                                                                Purchasing           regulations.                                                 decision making      objectives and
                                                                                                                                                                                                                expertise is not                                                                  takes place on       measurement
                                                                                                                                                                                                                employed or                                                                       whether or not to    take place on the
                                                                                                                                                                                                                only at the                                                                       form                 basis of these.
                                                                                                                                                                                                                implementation                                                                    partnerships         Purchasing is
                                                                                                                                                                                                                stage. Little or                                                                  with suitable        also involved in
                                                                                                                                                                                                                no                                                                                external parties.    general
                                                                                                                                                                                                                communication                                                                                          commercial
                                                                                                                                                                                                                takes place with                                                                                       considerations.
                                                                                                                                                                                                                stakeholders. No                                                                                       A detailed
                                                                                                                                                                                                                evidence that                                                                                          communication
                                                                                                                                                                                                                attention is paid                                                                                      plan exists that
                                                                                                                                                                                                                to legislation and                                                                                     includes the
                                                                                                                                                                                                                regulations.                                                                                           various internal

Strategic process 2
Commodity/purchase family strategy development
General description                                    Aspects             Notes                                                                                                                                      1                 2                     3                    4                 5                   6                   7                  8                  9                       10
Define the organisation's requirements and         2.1 Supplier market     Using external information such as market research, market consultation and benchmarking to draw up specifications.                No or ad hoc                           Thorough                                                                                                                Benchmarking        Formal risk
formulate an appropriate purchasing strategy for       analysis                                                                                                                                               supplier market                        understanding of                                                                                                                            assessment of
each commodity/purchase family.                                                                                                                                                                               research                               structure and                                                                                                                               suppliers market
                                                                                                                                                                                                                                                     development of
                                                                                                                                                                                                                                                     the suppliers
                                                   2.2 Internal client     Using internal information to define requirements.                                                                                                   Reactive                                   Agreement         Pro-active                                                  Intensive
                                                       analysis                                                                                                                                                                 approach and                               reached           approach                                                    collaboration
                                                                                                                                                                                                                                consultation the                           reactively                                                                    (commitment)
                                                                                                                                                                                                                                internal client
                                                   2.3 Strategy            Is the definition of purchasing requirements based on a long term strategy or short term objectives?                               No or very little Short term focus                           Focus on long                         There are
                                                                                                                                                                                                              evidence of the   and                                        term                                  partnerships
                                                                                                                                                                                                              existence of a    consideration is                                                                 across
                                                                                                                                                                                                              strategy for each given to the                                                                     organisations
                                                                                                                                                                                                              commodity/purch market approach                                                                    and various
                                                                                                                                                                                                              ase family                                                                                         innovative forms
                                                                                                                                                                                                                                                                                                                 of purchasing
                                                                                                                                                                                                                                                                                                                 and tendering
                                                                                                                                                                                                                                                                                                                 have received
                                                   2.4 Purchasing flows    Application of purchasing flows and risk analyses                                                                                                    Purchasing                                 Purchasing                                                Purchasing
                                                       and risk analyses                                                                                                                                                        flows and risk                             flows and risk                                            flows and risk
                                                                                                                                                                                                                                analysis with                              analysis with                                             analysis with
                                                                                                                                                                                                                                respect to price                           respect to cost                                           respect to
                                                                                                                                                                                                                                and volume                                                                                           process
                                                   2.5 Documentation       Documentation of strategic commodity/purchase families and product requirements                                                    No documented Documentation            Documentation                           Documented                              Explicit
                                                                                                                                                                                                              strategy for each on team              showing                                 process for                             recording of
                                                                                                                                                                                                              commodity/purch meetings               understanding of                        developing a                            results that have
                                                                                                                                                                                                              ase family        available            suppliers market                        strategy for each                       been achieved
                                                                                                                                                                                                                                                     available                               commodity/purch                         and improved on
                                                                                                                                                                                                                                                                                             ase family                              .

                                                   2.6 Decision making     Formalisation of decision making process                                                                                           No obvious        Managers define                                              Formal and
                                                       process                                                                                                                                                decision making   objectives and                                               structured
                                                                                                                                                                                                              process           coordinate the                                               process for
                                                                                                                                                                                                                                decision making                                              developing a
                                                                                                                                                                                                                                process                                                      strategy for each
                                                                                                                                                                                                                                independently of                                             commodity/purch
                                                                                                                                                                                                                                teams                                                        ase family

                                                   2.7 Communication       Communication with internal and external stakeholders on commodity/purchase families (consultation and coordination)               No                                                                             Some evidence                                               Regular
                                                                                                                                                                                                              communication                                                                  of                                                          consultation with
                                                                                                                                                                                                              with direct                                                                    communication                                               internal and
                                                                                                                                                                                                              stakeholders                                                                   with direct                                                 external (as
                                                                                                                                                                                                                                                                                             stakeholders.                                               applicable)
                                                                                                                                                                                                                                                                                                                                                         stakeholders on
                                                                                                                                                                                                                                                                                                                                                         development of
                                                                                                                                                                                                                                                                                                                                                         a strategy for
                                                                                                                                                                                                                                                                                                                                                         ase family.
                                                   2.8 Team composition    Functional or multi-disciplinary team, which takes decisions. Multi-disciplinary means that employees work within different                          Multi-disciplinary
                                                                           departments of the same organisation                                                                                                                 teams have
                                                                                                                                                                                                                                been put in
                                                                                                                                                                                                                                place to develop
                                                                                                                                                                                                                                a strategy.
                                                                                                                                                                                                                                assess whether
                                                                                                                                                                                                                                teams have the

                                                   2.9 Procurement         Identification of commodity/purchase families on the basis of procurement models (such as Kraljic Portfolio Analysis and the 80-   No deliberate                          Deliberate use of                                                                                                       Benchmark
                                                       models              20 rule), differentiation of commodity/purchase families is aligned to the strategy                                                use of                                 procurement                                                                                                             studies are
                                                                                                                                                                                                              procurement                            models                                                                                                                  taken into
                                                                                                                                                                                                              models                                                                                                                                                         account in
                                                                                                                                                                                                                                                                                                                                                                             developing a
                                                                                                                                                                                                                                                                                                                                                                             strategy for each
                                                                                                                                                                                                                                                                                                                                                                             ase family

                                                   2.1 Identification of   Extent to which product definition limits have been considered on the basis of information on suppliers and internal/external                        Product              Knowledge of          Strategy also     Both internal       Strategy based
                                                   0   product             clients. Includes preparing a programme with respect to the function of the product or services to be purchased, the technical                       requirements are     skills,               based on          and external        on development
                                                       requirements        requirements, logistics specifications                                                                                                               identified           performance and       commodity/purch   (client)            plans for
                                                                                                                                                                                                                                internally           results of both       ase family        requirements        technology that
                                                                                                                                                                                                                                                     current and           requirements                          have been
                                                                                                                                                                                                                                                     potential suppliers   identified by                         agreed and
                                                                                                                                                                                                                                                                           clients                               clustered within
                                                                                                                                                                                                                                                                                                                 the organisation
                                                                                                                                                                                                                                                                                                                 and with the
                                                                                                                                                                                                                                                                                                                 suppliers market.

                                                   2.1 Purchasing          Drawing up purchasing plans as part of the purchasing policy including tasks, responsibilities and information as well as                                                                                         Detailed plan of                        Including
                                                   1   planning            financial structures and budgets.                                                                                                                                                                                 action is                               specific,
                                                                                                                                                                                                                                                                                             available.                              measurable,
                                                                                                                                                                                                                                                                                             Critical path has                       time-bound
                                                                                                                                                                                                                                                                                             been made                               (SMART) and
                                                                                                                                                                                                                                                                                             explicit. Little                        pioneering
                                                                                                                                                                                                                                                                                             evidence of                             objectives, in
                                                                                                                                                                                                                                                                                             pioneering                              line with
                                                                                                                                                                                                                                                                                             objectives                              organisational
                                                                                                                                                                                                                                                                                                                                     and purchasing

                                           2.1 Evaluation of     Evaluation of (product) requirements with respect to quality, cost, logistics, technology, service, the environment, etc.                                                                                                            Formal                                Structured                                                Continuous
                                           2   results                                                                                                                                                                                                                                                evaluation                            pursuit and                                               evaluation of the
                                                                                                                                                                                                                                                                                                      process for                           evaluation of                                             tendering strategy.
                                                                                                                                                                                                                                                                                                      prioritising all                      results,
                                                                                                                                                                                                                                                                                                      relevant                              including
                                                                                                                                                                                                                                                                                                      requirements                          corrective actions

                                           2.1 Legislation and   Is there is evidence of sufficient attention to legislation and regulations, such as EU tendering guidelines (appropriate and in                     There is no         Some evidence                             Legislation and   Legislation and                                           The way in
                                           3   regulations       accordance with the law), with attention to the risks associated with purchasing processes arising from regulations.                                 evidence of         of attention to                           regulations are   regulations are                                           which the
                                                                                                                                                                                                                      attention to        legislation and                           taken into        complied with.                                            organisation
                                                                                                                                                                                                                      legislation and     regulations                               account                                                                     complies with
                                                                                                                                                                                                                      regulations.                                                                                                                              legislation and
                                                                                                                                                                                                                                                                                                                                                                regulations is
Summary                                                                                                                                                                                             The process       There is no         Multi-disciplinary   As 2, but the        As 3, but also    Formal,            As 5, but the        As 6, but         As 7, there is      As 8, benchmark   As 9, formal risk
                                                                                                                                                                                                    does not apply    process for         teams have           strategy for each    based on the      structured and     strategy is based including            intensive           studies are       assessment of the
                                                                                                                                                                                                    to the            developing a        been put in          commodity/purch      requirements for documented          on development specific,               collaboration       taken into        suppliers market is
                                                                                                                                                                                                    organisation or   strategy for each   place to develop     ase family is also   the               process for        plans for            measurable,       with internal       account in the    an integral part of the
                                                                                                                                                                                                    part of the       commodity/purch     a strategy for       based on a           commodity/purch developing a         technology that      time-bound        markets to draw     strategy          commodity/purchase
                                                                                                                                                                                                    organisation      ase family. No or   each                 thorough             ase family that   strategy for each have been             (SMART) and       up the strategy     development       family strategy.
                                                                                                                                                                                                                      very little         commodity/purch      understanding of     have been         commodity/purch agreed and              pioneering        resulting in a      process.          Continuous
                                                                                                                                                                                                                      evidence of the     ase family.          the structure and    identified and    ase family based clustered within objectives, in          high degree of                        evaluation of the
                                                                                                                                                                                                                      existence of        Managers have        development of       agreed with the   on both internal the organisation line with               commitment.                           tendering strategy
                                                                                                                                                                                                                      commodity/purch     been appointed       the suppliers        internal client.  and external       and with the         organisational    There is regular                      takes place.
                                                                                                                                                                                                                      ase family          with the role of     market               The focus of the (customer)          suppliers            and               feedback/agreem                       Identification and
                                                                                                                                                                                                                      strategies within   formulating the      (documented),        strategy is on    requirements,      market. There        procurement       ent on the                            pursuit of
                                                                                                                                                                                                                      the purchasing      team objectives,     including the        the long term.    including a        are partnerships policy. An            strategy for each                     improvements in the
                                                                                                                                                                                                                      department. No      coordinating         specific situation   Legislation and   formal             across               analysis of       commodity/purch                       development of
                                                                                                                                                                                                                      documented          decision making      on the ground in     regulations are   evaluation         organisations.       purchasing flows ase family with                        tendering strategies
                                                                                                                                                                                                                      strategy.           about teams,         the business,        taken into        process for        Various              and risks takes   the most                              takes place.
                                                                                                                                                                                                                      Supplier market     thoroughly           skills,              account when      prioritising all   innovative forms place for the         important
                                                                                                                                                                                                                      research does       assessing the        performance and      determining       the relevant       of tendering         process.          internal and
                                                                                                                                                                                                                      not take place or   competences of       results of both      tendering         requirements.      have received        Structured        possibly external
                                                                                                                                                                                                                      takes place on      teams to ensure      current and          strategies. There There is a         formal               pursuit and       stakeholders.
                                                                                                                                                                                                                      an ad hoc basis.    that they match      potential            is also analysis  proactive          consideration        evaluation of     Inter-
                                                                                                                                                                                                                      No                  the aims of the      suppliers.           of purchasing     approach           (contractual         results           relationships
                                                                                                                                                                                                                      communication       strategy and         Procurement          flows and risk on towards the        structures,          (including        and
                                                                                                                                                                                                                      with direct         arranging            models are also      the basis of      internal market    selection criteria). corrective        mechanisms in
                                                                                                                                                                                                                      stakeholders        participation by     used for the         costs.            when                                    actions). There   the suppliers
                                                                                                                                                                                                                      and no              the right            different                              determining                             is explicit       market are taken
                                                                                                                                                                                                                      deliberate use of   individuals.         commodity/purch                        strategy.                               recording of      into account in
                                                                                                                                                                                                                      procurement         There is             ase families.                          Detailed plan of                        results that have the tendering
                                                                                                                                                                                                                      models to draw      evidence that                                               action is                               been achieved     strategy. The
                                                                                                                                                                                                                      up a strategy.      team meetings                                               available, which                        and improved on. degree to which
                                                                                                                                                                                                                      There is no         take place.                                                 includes tasks,                                           the organisation
                                                                                                                                                                                                                      evidence of         Strategy                                                    responsibilities                                          complies with
                                                                                                                                                                                                                      attention to        development for                                             and dates. The                                            legislation and
                                                                                                                                                                                                                      legislation and     each                                                        critical path is                                          regulations is
                                                                                                                                                                                                                      regulations.        commodity/purch                                             made explicit.                                            evaluated.
                                                                                                                                                                                                                                          ase family is                                               Some evidence
                                                                                                                                                                                                                                          based on                                                    of
                                                                                                                                                                                                                                          internally                                                  communication
                                                                                                                                                                                                                                          defined product                                             with direct
                                                                                                                                                                                                                                          requirements.                                               stakeholders.
                                                                                                                                                                                                                                          This information                                            Little evidence of
                                                                                                                                                                                                                                          is obtained on                                              pioneering
                                                                                                                                                                                                                                          the basis of                                                objectives.
                                                                                                                                                                                                                                          reactive                                                    Legislation and
                                                                                                                                                                                                                                          consultation with                                           regulations are
                                                                                                                                                                                                                                          the internal                                                complied with.
                                                                                                                                                                                                                                          customer. The
                                                                                                                                                                                                                                          focus is on the
                                                                                                                                                                                                                                          short term and
                                                                                                                                                                                                                                          consideration is
                                                                                                                                                                                                                                          given to the
                                                                                                                                                                                                                                          flows and risks
                                                                                                                                                                                                                                          are analysed on
                                                                                                                                                                                                                                          the basis of price
                                                                                                                                                                                                                                          and volume.
                                                                                                                                                                                                                                          There is some
                                                                                                                                                                                                                                          evidence of
                                                                                                                                                                                                                                          attention to
                                                                                                                                                                                                                                          legislation and

Strategic process 3
Supply base development and leveraging
General description                                  Aspects                  Notes                                                                                                                               0 (N/A)           1                   2                 3                   4                 5                  6                      7                     8                   9                   10
Supply base development and leveraging is the    3.1 Supplier selection       The existence of a supplier selection process. This means that supplier selection criteria and a formal evaluation procedure need             Supplier           Formal and                                                                                                              Formally
process of determining the right number and most                              to be defined. Examples of criteria include solvency requirements, being able to guarantee nationwide cover, turnover volume,                 selection is       documented                                                                                                              documented
suitable suppliers for the organisation and                                   availability of certificates. These are all used to draw up a long list of suppliers.                                                         based on price     supplier                                                                                                                process for
ensuring that the supply base is up to date.                                                                                                                                                                                and availability   selection                                                                                                               supplier
                                                                                                                                                                                                                                               process based                                                                                                           selection based
                                                                                                                                                                                                                                               on current                                                                                                              on future
                                                                                                                                                                                                                                               requirements of                                                                                                         requirements
                                                                                                                                                                                                                                               the organisation
                                                3.2 Evaluation of             The way in which suppliers are evaluated. This includes monitoring, analysis, quality assessment, cost and purchasing risk                    Qualitative                           Simple supplier      Supplier         Supply base has                         Advanced               Regular                                  Performance of the
                                                    existing suppliers        associated with current suppliers.                                                                                                            perception of                         assessment           assessment       been extensively                        supplier               assessment of                            correct number/type
                                                                                                                                                                                                                            supplier                              system (quality,     system,          analysed on the                         assessment             strategic                                of suppliers is
                                                                                                                                                                                                                            performance and                       delivery             supplemented     basis of                                system available       suppliers                                maximised on the
                                                                                                                                                                                                                            basic evaluation                      reliability of       by simple        purchasing                              with objective         (assessment of                           basis of
                                                                                                                                                                                                                            of costs and                          strategic            supplier         turnover and                            assessments            capacity and                             differentiated
                                                                                                                                                                                                                            purchasing risk.                      suppliers)           classification   purchasing risk                         including              updating the                             commodity/purchase
                                                                                                                                                                                                                                                                                       system to                                                communication of       supplier's profile)                      family strategies
                                                                                                                                                                                                                                                                                       classify                                                 their performance
                                                                                                                                                                                                                                                                                       suppliers                                                to suppliers and
                                                                                                                                                                                                                                                                                       according to                                             discussion of
                                                                                                                                                                                                                                                                                       performance                                              improvement
                                                3.3 Team composition          The degree of multi-disciplinary collaboration in selecting and drawing up contracts with suppliers.                                                                                                                                                              Multi-disciplinary
                                                3.4 Organisational            Understanding of current and future requirements of the internal organisation                                                                                                                                                                                                            Clear picture of      Good
                                                    requirements                                                                                                                                                                                                                                                                                                       the current and       understanding of
                                                                                                                                                                                                                                                                                                                                                                       future                the
                                                                                                                                                                                                                                                                                                                                                                       requirements of       organisation's
                                                                                                                                                                                                                                                                                                                                                                       the organisation      requirements in
                                                                                                                                                                                                                                                                                                                                                                                             respect of the
                                                                                                                                                                                                                                                                                                                                                                                             supplier base
                                                3.5 Suppliers market          Supplier market analysis carried out to allow suppliers to be evaluated and selected                                                                             Ad hoc supplier                                                                                                                               Fundamental
                                                    analysis                                                                                                                                                                                   market research                                                                                                                               supplier market
                                                3.6 Supplier                  Differentiation of suppliers as strategic and non-strategic on the basis of (supplier) procurement models                                     Where                                                                       Differentiation    Supplier             Information                                                     Supply base
                                                    differentiation                                                                                                                                                         differentiation                                                             not yet aligned    differentiation on   available to                                                    development and
                                                                                                                                                                                                                            takes place,                                                                to (purchasing)    the basis of         strategic                                                       leveraging on the
                                                                                                                                                                                                                            suppliers are                                                               analyses that      procurement          suppliers: status                                               basis of
                                                                                                                                                                                                                            categorised as                                                              have been          models (analyses)    of the supply                                                   differentiated
                                                                                                                                                                                                                            strategic and                                                               carried out                             base, supplier                                                  commodity/purchase
                                                                                                                                                                                                                            non-strategic                                                                                                       performance and                                                 family strategies
                                                                                                                                                                                                                                                                                                                                                initiatives to bring
                                                3.7 Supply base               Plan to improve the supplier base by taking specific measures.                                                                                No or few                                                  Supply base                         Differentiated       Improvement            Clear
                                                    development                                                                                                                                                             initiatives for                                            development                         supplier base        programmes are         understanding of
                                                                                                                                                                                                                            supply base                                                and leveraging                      management           in place               current and
                                                                                                                                                                                                                            development                                                plan based on                       process based on                            future
                                                                                                                                                                                                                            and leveraging                                             supplier                            procurement                                 capacities/skills
                                                                                                                                                                                                                                                                                       assessment                          models                                      of suppliers on
                                                                                                                                                                                                                                                                                       system                                                                          the basis of
                                                3.8 Differentiated policy Degree to which the purchasing policy addresses the differences between the various suppliers. Does the purchasing policy                                            Policy does not                                                             Differentiated
                                                                          recognise that there are different types of suppliers (e.g. on the basis of Kraljic) and that they need to be treated differently.                                   address the                                                                 purchasing policy
                                                                                                                                                                                                                                               difference                                                                  on the basis of
                                                                                                                                                                                                                                               between                                                                     differentiation
                                                                                                                                                                                                                                               strategic and                                                               using
                                                                                                                                                                                                                                               non-strategic                                                               procurement
                                                                                                                                                                                                                                               suppliers or                                                                models
                                                                                                                                                                                                                                               does so to a
                                                                                                                                                                                                                                               limited extent
                                                3.9 Documentation             Documenting of decisions, analyses carried out on the basis of procurement models and/or research related to supplier base                                       Little or no                                             Documentation      Documented           Evidence that the                            Documented
                                                                              development                                                                                                                                                      evidence of a                                            of analyses in     proof of             approach is                                  purchasing
                                                                                                                                                                                                                                               differentiated                                           the form of        differentiated       yielding results                             market research
                                                                                                                                                                                                                                               policy for                                               purchasing         strategy towards     and objectives are
                                                                                                                                                                                                                                               strategic and                                            models available   suppliers            being achieved
                                                3.1 Communication             The degree to which communication takes place on the supplier base.                                                                                                                 Little evidence of                                                            Communication
                                                0                                                                                                                                                                                                                 formal                                                                        about
                                                                                                                                                                                                                                                                  communication                                                                 performance with
                                                                                                                                                                                                                                                                  about the                                                                     suppliers and
                                                                                                                                                                                                                                                                  supplier base                                                                 discussion of
                                                                                                                                                                                                                                                                  with                                                                          improvement
                                                                                                                                                                                                                                                                  stakeholders.                                                                 programmes
                                                3.1 Legislation and           Is there evidence of compliance with legislation and regulations such as EU tendering guidelines (appropriate and in accordance               No evidence of     Some evidence                                            Evidence of                                                    Evaluation of
                                                1   regulations               with the law) when selecting and entering into contracts with suppliers. With regards European Tender Regulations, prior                      attention to       of attention to                                          compliance with                                                compliance with
                                                                              reporting, observance of the correct procedure and reporting of the award result are of particular importance.                                legislation and    legislation and                                          legislation and                                                legislation and
                                                                                                                                                                                                                            regulations        regulations                                              regulations                                                    regulations
Summary   The process       Supplier            There is a          As 2, but a         As 3, but with a   As 4, but the      As 5, but with      As 6, but an           As 7, and there     As 8, but with     There is a
          does not apply    selection is        formal,             simple supplier     supplier           supply base has    clear evidence of   advanced supplier      is a formally       the opportunity    differentiated
          to the            based on price      documented          measurement         measurement        been extensively   a differentiated    measurement            documented          to invest time     strategy for each
          organisation or   and availability.   supplier            system is used      system and a       analysed on the    supply base         system is also         process for         and resources in   commodity/purchase
          part of the       There are no        selection           to measure at       simple supplier    basis of           management          used. This system      supplier            fundamental        family (at least score
          organisation.     initiatives for     process based       least the quality   qualification      purchasing         process. This is    covers both            selection based     supplier market    7 in element 2) for
                            supply base         on the current      and delivery        system that        turnover and       based on            current products       on future           research           the purposes of
                            development         requirements        reliability of      supports the       purchasing risk.   analyses drawn      and a new              requirements. In    (starting with a   supply base
                            and leveraging,     and capacities of   strategic           supply base        Documentation      from procurement    product and            addition, regular   good               development and
                            or supplier         the organisation.   suppliers. Little   development        is available in    models.             process                assessment of       understanding of   leveraging and to
                            selection is        Little or no        evidence of         and leveraging     the form of        Documented          development            all strategic       organisational     maximise the
                            based to a          evidence of a       formal              plan.              analyses based     proof of            process. The           suppliers takes     requirements       performance of the
                            limited extent on   differentiated      communication                          on procurement     differentiated      criteria have been     place (e.g.         and the supply     correct number and
                            the qualitative     policy for          on this subject                        models. Little     strategy and        weighted in            assessment of       base). The         type of suppliers.
                            perception of       strategic and       with                                   evidence that      practice towards    accordance with        capacity and        planning and
                            suppliers'          non-strategic       stakeholders.                          differentiation    suppliers.          the organisation's     updating the        implementation
                            performance and     suppliers. Ad                                              between                                policy, multi-         supplier's          of purchasing
                            a basic             hoc supplier                                               suppliers takes                        disciplinary           profile) with the   market research
                            evaluation of       market research                                            place on the                           involvement and        aim of obtaining    has been clearly
                            costs and           takes place.                                               basis of these                         objective              and keeping a       documented.
                            purchasing          Some evidence                                              analyses. There                        measurements.          clear, up to date
                            risks. Suppliers    of attention to                                            is evidence of                         There is evidence      picture of the
                            are categorised     legislation and                                            compliance with                        that the approach      supplier and his
                            as strategic or     regulations.                                               legislation and                        is yielding results    current and
                            non-strategic.                                                                 regulations.                           and objectives are     future capacity
                            No evidence of                                                                                                        being achieved.        and skills (in
                            attention to                                                                                                          This information is    relation to the
                            legislation and                                                                                                       communicated to        current and
                            regulations.                                                                                                          suppliers and          future
                                                                                                                                                  programmes for         requirements of
                                                                                                                                                  improvement are        the
                                                                                                                                                  regularly              organisation).
                                                                                                                                                  discussed. The         Evaluation of
                                                                                                                                                  following              compliance with
                                                                                                                                                  information about      legislation and
                                                                                                                                                  current                regulations.
                                                                                                                                                  requirements and
                                                                                                                                                  skills is available
                                                                                                                                                  to all strategic
                                                                                                                                                  suppliers and the
                                                                                                                                                  main parties
                                                                                                                                                  involved: status of
                                                                                                                                                  the supply base,
                                                                                                                                                  performance and
                                                                                                                                                  initiatives to bring
Strategic process 4
Developing and managing strategic supplier alliances
General description                                     Aspects           Notes                                                                                                                                 0 (N/A)            1                   2                     3                   4                   5                    6                    7                    8                   9                     10
Developing, managing and improving alliances        4.1 Procurement       Relates to descriptions of the requirement for and definition of supplier alliances included in the purchasing policy (strategic or             There is a formal
with strategic suppliers based on a professional,       policy            non-strategic). The definition includes terms such as mutual dependence and establishment of mutual trust                                       definition in the
transparent approach.                                                                                                                                                                                                     procurement
                                                                                                                                                                                                                          policy stating the
                                                                                                                                                                                                                          suppliers with
                                                                                                                                                                                                                          whom a strategic
                                                                                                                                                                                                                          alliance should
                                                                                                                                                                                                                          be formed

                                                    4.2 Evaluation        Formal process in place for intermediate evaluations of the criteria and objectives for each supplier relationship in accordance                There is a formal                                                                                                            Open book                                Clear evidence
                                                        process           with the purchasing plan. This process also covers contract administration and contract management. Contract administration                     process for                                                                                                                  policy to share                          of achievement
                                                                          covers the definition, storage and updating of contract data in order to highlight and implement specific actions. Contract                     recording the                                                                                                                cost calculations                        of goals and
                                                                          management refers to the optimum utilisation of the supplied products and services that are part of 1 contract                                  criteria and                                                                                                                 and cost                                 improvement in
                                                                                                                                                                                                                          objectives for                                                                                                               breakdowns                               results
                                                                                                                                                                                                                          each alliance in
                                                                                                                                                                                                                          accordance with
                                                                                                                                                                                                                          the procurement
                                                                                                                                                                                                                          plan and the

                                                    4.3 Documentation     Documentation of decision making processes with respect to selection and contracting to suppliers                                                                    Documented           Documentation                                                                                           Clear evidence
                                                                                                                                                                                                                                               and structured       showing that a                                                                                          of an ambitious
                                                                                                                                                                                                                                               process for          supplier alliance                                                                                       agenda for
                                                                                                                                                                                                                                               identifying,         programme is                                                                                            improvements
                                                                                                                                                                                                                                               assessing and        being developed
                                                    4.4 Collaboration     The way in which collaboration with (critical) strategic suppliers takes place                                                                                       Little evidence of   If relevant,          Senior             If applicable, the   Joint terms of       Costs analysed       Continuous                               Formal agreement
                                                        with supplier                                                                                                                                                                          joint formulation    contracts are in      management         strategic            reference have       in conjunction       evaluation of the                        and mutual plans for
                                                                                                                                                                                                                                               of objectives        place for most        from both sides    supplier             been formulated      with supplier.       alliance in the                          the future in the area
                                                                                                                                                                                                                                                                    strategic suppliers   are involved in    relationship has     for current          Open book            light of the                             of technology,
                                                                                                                                                                                                                                                                                          developing and     been integrated      projects. Some       policy in order to   intended                                 objectives and
                                                                                                                                                                                                                                                                                          managing           into the "Product    objectives have      share cost           objectives                               strategies. Open
                                                                                                                                                                                                                                                                                          alliances. Role    process              been defined         structure and                                                 sharing of information
                                                                                                                                                                                                                                                                                          separation takes   innovation (PPI)"    jointly and there    calculations
                                                                                                                                                                                                                                                                                          place and          process              is a joint           across the entire
                                                                                                                                                                                                                                                                                          purchasing                              planning             value chain
                                                                                                                                                                                                                                                                                          expertise has a                         process. No
                                                                                                                                                                                                                                                                                          separate role                           evidence that
                                                                                                                                                                                                                                                                                          within the                              strategies for the
                                                                                                                                                                                                                                                                                          relationship.                           future are
                                                                                                                                                                                                                                                                                                                                  geared to one
                                                    4.5 Improvement       Programme to develop supplier alliances and performance, including integral cost analyses and benchmarking                                                                                                      Joint (with                                                  Integral costs       Ambitious joint     Joint (with
                                                        programmes                                                                                                                                                                                                                        suppliers)                                                   and processes        (with supplier)     supplier) training
                                                                                                                                                                                                                                                                                          improvement                                                  have been            agenda for          programme has
                                                                                                                                                                                                                                                                                          programmes are                                               analysed             improvements        been formulated
                                                                                                                                                                                                                                                                                          still in their                                                                    has been drawn
                                                                                                                                                                                                                                                                                          infancy                                                                           up on the basis
                                                                                                                                                                                                                                                                                                                                                                            of benchmarking
                                                    4.6 Communication     Communication channels between the organisation and the supplier.                                                                                                    Little evidence of                         Supplier                                                                                                                   Open
                                                                                                                                                                                                                                               existence of                               alliances                                                                                                                  communication with
                                                                                                                                                                                                                                               structured                                 occasionally                                                                                                               supplier
                                                                                                                                                                                                                                               communication                              form an item on
                                                                                                                                                                                                                                               channels                                   the agenda for
                                                                                                                                                                                                                                                                                          the management
                                                                                                                                                                                                                                                                                          within the
                                                                                                                                                                                                                                                                                          takes place on a
                                                                                                                                                                                                                                                                                          formal basis

                                                    4.7 Legislation and   Is there evidence that legislation and regulations are sufficiently taken into account when developing and managing supplier                    No evidence of       Some evidence                                                 Evidence of                                                    Evaluation of
                                                        regulations       alliances?                                                                                                                                      attention to         of attention to                                               compliance with                                                compliance with
                                                                                                                                                                                                                          legislation and      legislation and                                               legislation and                                                legislation and
                                                                                                                                                                                                                          regulations          regulations                                                   regulations                                                    regulations
Summary   The process       There is a formal    There is a        As 2, and            As 3, and senior    As 4, (if           As 5, joint terms    As 6, the integral   As 7, there is      As 8, a joint      As 9, formal
          does not apply    definition in the    documented and    contracts are        management          applicable) the     of reference         costs and            clear evidence      (with supplier)    agreement and
          to the            procurement          structured        available (if        from both sides     strategic           have been            processes have       that an             training           mutual plans for the
          organisation or   policy stating the   process for       relevant) for most   are involved in     supplier            formulated for       been analysed        ambitious joint     programme has      future in the area of
          part of the       suppliers with       identifying,      strategic            developing and      relationship has    current projects.    jointly. Open        (with supplier)     been formulated.   technology,
          organisation.     whom a strategic     assessing and     suppliers,           managing            been integrated     Some objectives      book policy to       agenda for          Clear evidence     objectives and
                            alliance should      selecting         including            alliances. Role     into the "Product   have been            share cost           improvements        of achievement     strategies.
                            be formed            potential         documentation        separation takes    process             defined jointly      breakdowns and       has been drawn      of goals and       Information on future
                            and/or               (strategic)       showing that a       place and           innovation (PPI)"   and there is a       calculations         up on the basis     improvement in     products and
                            developed.           suppliers based   supplier alliance    purchasing          process. There      joint planning       across the whole     of                  results.           technical
                            There is a formal    on defined        programme is         expertise has a     is evidence of      process. No          supply chain.        benchmarking.                          developments are
                            process for          criteria (as      being developed.     separate role       compliance with     evidence that                             Continuous                             openly shared.
                            recording the        defined in 1.).                        within the          legislation and     strategies for the                        evaluation of the
                            criteria and         There is little                        relationship.       regulations.        future are                                alliance in the
                            objectives for       evidence of the                        Supplier                                geared to one                             light of the
                            each alliance in     existence of                           alliances                               another.                                  intended
                            accordance with      structured                             occasionally                                                                      objectives.
                            the procurement      channels of                            form an item on                                                                   Evaluation of
                            plan and the         communication                          the agenda for                                                                    compliance with
                            organisation's       and the joint                          the management                                                                    legislation and
                            objectives. No       formulation of                         team and joint                                                                    regulations takes
                            evidence of          objectives.                            (with suppliers)                                                                  place.
                            attention to         Some evidence                          improvement
                            legislation and      of attention to                        programmes are
                            regulations.         legislation and                        still in their
                                                 regulations.                           infancy.
                                                                                        between the
                                                                                        various levels in
                                                                                        the organisation
                                                                                        is organised on
                                                                                        a formal basis.
Strategic process 5
Optimisation of product/process innovation and development
General description                                  Aspects                 Notes                                                                                                                         0 (N/A)           1                  2                   3                    4                  5                   6                 7               8                 9                  10
Making the most effective use of the knowledge   5.1 Supplier market         Research into the supplier market and the utilisation of technical know-how available in the market.                                                                           In-depth                                                                                                                         Extensive supplier
available in the market for the purposes of          research                                                                                                                                                                                               knowledge of                                                                                                                     market research,
developing new products and processes.                                                                                                                                                                                                                      suppliers market                                                                                                                 ongoing analysis of
                                                                                                                                                                                                                                                                                                                                                                                             relevant sectors of
                                                 5.2 PPI policy and          PPI = product/process innovation. A PPI policy is in place. Role of purchasing described/defined in PPI policy. Policy also             No or limited      Explicit decision
                                                     procedures              indicates how specific client requirements and needs should be handled.                                                                 application of     making on
                                                                                                                                                                                                                     PPI policy and     innovation or
                                                                                                                                                                                                                     procedures         development

                                                 5.3 Purchasing              Employee involvement in purchasing function when creating products and services                                                         Role of            Purchasing
                                                     involvement                                                                                                                                                     purchasing and     involved in PPI
                                                                                                                                                                                                                     suppliers is       from (pre)
                                                                                                                                                                                                                     defined in PPI     development
                                                                                                                                                                                                                     policy (if         phase
                                                 5.4 Supplier selection      Supplier selection in line with PPI policy                                                                                                                                     Selection of                                                                                                                     Overview of strategic
                                                                                                                                                                                                                                                            suppliers based                                                                                                                  suppliers available
                                                                                                                                                                                                                                                            on requirements                                                                                                                  for each technology
                                                                                                                                                                                                                                                            defined in                                                                                                                       cluster
                                                                                                                                                                                                                                                            strategic process
                                                                                                                                                                                                                                                            2 and in line with
                                                                                                                                                                                                                                                            policy and project

                                                 5.5 Evaluation of           Evaluation of supplier processes                                                                                                                                               More thorough
                                                     supplier processes                                                                                                                                                                                     assessment of
                                                                                                                                                                                                                                                            processes only if
                                                 5.6 Evaluation of        Evaluation of supplier performance on the basis of written agreements.                                                                                                                                                                                           Supplier                         Formal
                                                     supplier performance                                                                                                                                                                                                                                                                  performance is                   evaluation
                                                                                                                                                                                                                                                                                                                                           measured and                     process for
                                                                                                                                                                                                                                                                                                                                           compared                         assessing
                                                                                                                                                                                                                                                                                                                                           against                          development
                                                                                                                                                                                                                                                                                                                                           expectations.                    projects with
                                                                                                                                                                                                                                                                                                                                           Because it is                    suppliers
                                                                                                                                                                                                                                                                                                                                           difficult to
                                                                                                                                                                                                                                                                                                                                           aspects, an
                                                                                                                                                                                                                                                                                                                                           system is
                                                                                                                                                                                                                                                                                                                                           required to
                                                                                                                                                                                                                                                                                                                                           achievement of
                                                                                                                                                                                                                                                                                                                                           goals and
                                                                                                                                                                                                                                                                                                                                           improvement in
                                                 5.7 Corrective action       Planning and implementation of corrective action on the basis of supplier performance evaluation results                                                                                                                                                      Corrective                       Programmes for
                                                                                                                                                                                                                                                                                                                                           measures                         improvement in
                                                                                                                                                                                                                                                                                                                                           planned and                      the future are
                                                                                                                                                                                                                                                                                                                                           implemented                      defined on the
                                                                                                                                                                                                                                                                                                                                                                            basis of
                                                 5.8 Decision making         Decision making process on how to integrate suppliers in the innovation process                                                                                                                     Formal decision
                                                     process                                                                                                                                                                                                                     making process
                                                                                                                                                                                                                                                                                 to determine the
                                                                                                                                                                                                                                                                                 best time and
                                                                                                                                                                                                                                                                                 way to involve
                                                                                                                                                                                                                                                                                 the supplier in
                                                                                                                                                                                                                                                                                 the process

                                                 5.9 Project objectives      Existence of project objectives (incl. milestones)                                                                                                                                                                      Clear project
                                                                                                                                                                                                                                                                                                     objectives that
                                                                                                                                                                                                                                                                                                     have been
                                                                                                                                                                                                                                                                                                     translated into
                                                                                                                                                                                                                                                                                                     purchasing and
                                                 5.1 Collaboration with      Collaboration with supplier including contents of contract (confidentiality statement, intellectual property rights, etc.)              Little of no                                                Contract and        Development        If relevant,
                                                 0   supplier                                                                                                                                                        evidence of                                                 terms of            contracts, in      physical
                                                                                                                                                                                                                     supplier                                                    reference have      which objectives   presence of the
                                                                                                                                                                                                                     integration into                                            been drawn up       for the supplier   suppliers'
                                                                                                                                                                                                                     product process                                             to a limited extent have been          developers in
                                                                                                                                                                                                                     innovation (PPI)                                                                formulated, are    the
                                                                                                                                                                                                                                                                                                     in place           organisation's
                                                 5.1 Communication           Communication on improving product and process innovation and development with suppliers and other disciplines within the                                                                                                                  Regular                             Open book                        Discussions on
                                                 1                           organisation                                                                                                                                                                                                                               meetings                            policy on                        direction of joint
                                                                                                                                                                                                                                                                                                                        planned. Multi-                     sharing of                       technological
                                                                                                                                                                                                                                                                                                                        disciplinary and                    knowledge and                    research
                                                                                                                                                                                                                                                                                                                        multi-level                         development
                                                                                                                                                                                                                                                                                                                        communication                       plans with
                                                 5.1 Multi-disciplinary      Collaboration with other disciplines within the organisation                                                                                                                                                                               Project
                                                 2   approach                                                                                                                                                                                                                                                           objectives
                                                                                                                                                                                                                                                                                                                        defined across
                                                                                                                                                                                                                                                                                                                        boundaries of
          5.1 Use of IT systems   Interlinked internal/external information systems to facilitate the exchange of information and to save time and money (financial                                                                                                                                                                                         Interlinked
          3                       IT, general information and e-procurement systems)                                                                                                                                                                                                                                                                        internal/external
                                                                                                                                                                                                                                                                                                                                                            systems (EDI,
                                                                                                                                                                                                                                                                                                                                                            databases) to
                                                                                                                                                                                                                                                                                                                                                            facilitate the
                                                                                                                                                                                                                                                                                                                                                            exchange of
                                                                                                                                                                                                                                                                                                                                                            information to
                                                                                                                                                                                                                                                                                                                                                            save time and
          5.1 Legislation and     Is there evidence that legislation and regulations are taken into account when optimising product and process innovation and                          No evidence of      Some evidence        Explicit attention                       Checks for                                                     Effective
          4   regulations         development (appropriate and in accordance with the law)?                                                                                             attention to        of attention to      to compliance                            compliance with                                                compliance with
                                                                                                                                                                                        legislation and     legislation and      with legislation                         legislation and                                                legislation and
                                                                                                                                                                                        regulations         regulations          and regulations                          regulations                                                    regulations
                                                                                                                                                                                                                                                                          embedded in the                                                achieved by
                                                                                                                                                                                                                                                                          procedures                                                     means of
                                                                                                                                                                                                                                                                                                                                         analysis and
                                                                                                                                                                                                                                                                                                                                         evaluation of
Summary                                                                                                                                                               The process       Little or no        As 1, explicit       As 2, there is a     As 3, there is a    As 4, clear          As 5, and             As 6, the           As 7, an open      As 8, interlinked   As 9, an overview of
                                                                                                                                                                      does not apply    evidence of         decision making      good knowledge       formal decision     project              regular meetings      supplier's          book policy with   internal/external   strategic suppliers is
                                                                                                                                                                      to the            supplier            on innovation or     of the suppliers     making process      objectives have      have been             performance is      regards to         information         available for each
                                                                                                                                                                      organisation or   integration into    development          market and           to determine the    been formulated      planned. The          measured and        sharing            systems (e.g.       technology cluster
                                                                                                                                                                      part of the       product process     projects takes       selection of the     best time and       (including time,     project               compared            knowledge and      EDI, databases)     based on extensive
                                                                                                                                                                      organisation.     innovation (PPI).   place. There is      supplier is          way to involve      costs and            objectives have       against             development        facilitate the      supplier market
                                                                                                                                                                                        No or limited use   clear evidence       explicitly based     the supplier in     quality) that        been                  expectations.       plans is           exchange of         research, continuous
                                                                                                                                                                                        of PPI policy and   that Purchasing      on the               PPI. Contract       have been            communicated          Relevant            pursued.           information to      research into
                                                                                                                                                                                        procedures, in      is involved in       requirements         and terms of        translated into      and defined           corrective          Effective          save time and       relevant sectors of
                                                                                                                                                                                        which (if           PPI from the         defined in           reference have      purchasing and       (more than just       measures are        compliance with    money. There is     industry and
                                                                                                                                                                                        available) the      (pre-                process 2 and is     been drawn up       supplier             the product           planned and         legislation and    a formal            discussions about
                                                                                                                                                                                        role of             )development         in line with the     to a limited        objectives.          functionalities) at   implemented.        regulations        evaluation          the direction of joint
                                                                                                                                                                                        procurement         stage of projects.   policy and the       extent (as a        Development          various levels of     There is an         achieved by        process with        technical research.
                                                                                                                                                                                        and suppliers is    Some evidence        project. A more      minimum,            contracts have       the organisation      advanced            means of           suppliers for
                                                                                                                                                                                        described/define    of attention to      thorough             confidentiality     been drawn up        and beyond the        supplier            analysis and       evaluating
                                                                                                                                                                                        d. No evidence      legislation and      assessment of        statements and      in which the         boundaries of         measurement         evaluation of      development
                                                                                                                                                                                        of attention to     regulations.         the suppliers'       guidelines          objectives for the   the different         system for          procedures.        projects and
                                                                                                                                                                                        legislation and                          processes only       relating to         supplier have        disciplines. If       supplier                               defining
                                                                                                                                                                                        regulations.                             takes place if       intellectual        been formulated.     relevant,             performance in                         programmes for
                                                                                                                                                                                                                                 necessary.           property rights).   Checks for           arrangements          PPI (this is                           improvement in
                                                                                                                                                                                                                                 There is explicit                        compliance with      are made for the      because                                the future.
                                                                                                                                                                                                                                 attention to                             legislation and      physical              measuring
                                                                                                                                                                                                                                 compliance with                          regulations for      presence of the       innovation is
                                                                                                                                                                                                                                 legislation and                          optimising           suppliers'            difficult). Clear
                                                                                                                                                                                                                                 regulations in                           product and          developers in         evidence of
                                                                                                                                                                                                                                 order to optimise                        process              the                   achievement of
                                                                                                                                                                                                                                 PPI.                                     innovation and       organisation's        goals and
                                                                                                                                                                                                                                                                          development are      development           improvement in
                                                                                                                                                                                                                                                                          embedded in the      department.           results.
Strategic process 6
Supplier integration into the order fulfilment process
General description                                    Aspects              Notes                                                                                                                                    0 (N/A)                1                  2                   3                  4                 5                   6                    7                    8                    9                   10
Coordinate/optimise internal and suppliers'        6.1 Supplier integration The integration of the supplier in the order fulfilment process to use this process to maximum effect.                                                Little or no                                                Supplier is
operational management, i.e. take contracted                                                                                                                                                                                      evidence of                                                 involved in
supplier processes into account in internal                                                                                                                                                                                       supplier                                                    process of
processes. This relates to the optimisation of all                                                                                                                                                                                integration                                                 optimising
repetitive, operational processes (operational                                                                                                                                                                                                                                                operational
purchasing). Optimisation is achieved by reducing                                                                                                                                                                                                                                             purchasing
turnaround times, using capacity to maximum
effect, improving collaboration within the
organisation, decision making processes and
                                                   6.2 Multi-disciplinary   Collaboration within the organisation, for example between those who define requirements, the finance department, logistics,                          Internal multi-                                                                                   Teams with                                Forces joined        Best use of
                                                       collaboration        specific experts and purchasing, and collaboration between the purchasing department and suppliers in order to coordinate                             disciplinary                                                                                      client and                                and integrated       qualities and
                                                                            demand with the suppliers' capacity                                                                                                                   collaboration                                                                                     supplier                                  across the entire    skills is made
                                                                                                                                                                                                                                                                                                                                    representatives                           supply chain to      throughout the
                                                                                                                                                                                                                                                                                                                                                                              improve              entire supply
                                                                                                                                                                                                                                                                                                                                                                              planning, stock      chain
                                                                                                                                                                                                                                                                                                                                                                              levels, invoicing,

                                                   6.3 Communication          Formalisation of communication within the organisation, with suppliers and clients                                                                  Formal internal      Automated           Terms of           Communication                                              Information
                                                                                                                                                                                                                                  communication        (production         reference only     with (strategic)                                           system that
                                                                                                                                                                                                                                  structure            planning and)       discussed          suppliers on                                               enables the
                                                                                                                                                                                                                                                       coding system to    internally         (automated)                                                exchange of
                                                                                                                                                                                                                                                       optimise internal                      requirement                                                information
                                                                                                                                                                                                                                                       exchange of                            forecasts                                                  across the entire
                                                                                                                                                                                                                                                       information                            (demand)                                                   supply chain
                                                                                                                                                                                                                                                                                                                                                         including the
                                                                                                                                                                                                                                                                                                                                                         client (e.g. using
                                                   6.4 Documentation          Recording of decisions taken with respect to the order fulfilment process and analyses that formed the background to these                                                                   Evidence that      Strategic                                                  Documentation                             Evidence of
                                                                              decisions                                                                                                                                                                                    terms of           suppliers are                                              of evaluation                             effective design
                                                                                                                                                                                                                                                                           reference have     clearly involved                                           process                                   of systems and
                                                                                                                                                                                                                                                                           been formulated    in planning                                                                                          processes to
                                                                                                                                                                                                                                                                                                                                                                                                   utilisation of
                                                                                                                                                                                                                                                                                                                                                                                                   qualities and
                                                                                                                                                                                                                                                                                                                                                                                                   skills in the
                                                                                                                                                                                                                                                                                                                                                                                                   supply chain
                                                   6.5 Planning process       Improvement of product/service delivery requirement planning                                                                                        Attempts to                                                 Requirement
                                                                                                                                                                                                                                  improve                                                     planning
                                                                                                                                                                                                                                  requirement                                                 process based
                                                                                                                                                                                                                                  planning                                                    on forecasts
                                                                                                                                                                                                                                  process internally

                                                   6.6 Improvement plan       The extent to which the purchasing plan focuses on optimising the logistics process and reducing transaction costs, for example                                                              Terms of                              Proactive          Action and                                                     Focus on            Improvement
                                                                              by reducing turnaround times, decreasing the number of logistics process steps, reducing stock levels and order times                                                                        reference in                          process to         implementation                                                 effective design    programme at world
                                                                                                                                                                                                                                                                           purchasing plan                       reduce the         plans to reduce                                                of systems and      class level
                                                                                                                                                                                                                                                                           to shorten                            number of steps    stock levels,                                                  processes and
                                                                                                                                                                                                                                                                           turnaround                            in the logistics   order times and                                                the use of e-
                                                                                                                                                                                                                                                                           times, etc.                           process, the       turnaround                                                     tools and other
                                                                                                                                                                                                                                                                                                                 number of          times, and to                                                  innovative forms
                                                                                                                                                                                                                                                                                                                 invoices, the      improve internal
                                                                                                                                                                                                                                                                                                                 amount of stock,   accounting
                                                                                                                                                                                                                                                                                                                 etc.               procedures
                                                   6.7 Evaluation process Assessing the actual situation and analysing the differences between the plan and the actual situation (including the financial                                                                                                                           Process for                                                                        Benchmarking of the
                                                                          plan in the budget)                                                                                                                                                                                                                                       evaluating results                                                                 entire supply chain

Summary                                                                                                                                                                                                         The process       There is little or   As 1, there is an   As 2, there is     As 3, there is     As 4, there is a   As 5, there is       As 6, an             As 7, forces are     As 8, there is      Benchmarking of the
                                                                                                                                                                                                                does not apply    no evidence of       automated           evidence that      evidence that      proactive          evidence that        information          joined and           clear evidence      entire supply chain
                                                                                                                                                                                                                to the            supplier             (production         terms of           (strategic)        process to         teams with           system is in use     integrated           that the best use   resulting in an
                                                                                                                                                                                                                organisation or   integration into     planning and)       reference have     suppliers have     reduce the         members from         that enables the     across the entire    of qualities and    improvement
                                                                                                                                                                                                                part of the       the order            coding system to    been formulated,   been integrated    number of steps    the customer's       exchange of          supply chain         skills is made      programme at world
                                                                                                                                                                                                                organisation.     fulfilment           optimise the        e.g. to shorten    in the             in the logistics   and the              information          (contractors/clien   throughout the      class level.
                                                                                                                                                                                                                                  process. There       internal            turnaround times   requirement        process, to        supplier's side      across the whole     ts) to improve       entire supply
                                                                                                                                                                                                                                  are attempts to      exchange of         as part of the     planning           reduce the         have been            supply chain         planning, stock      chain by the
                                                                                                                                                                                                                                  improve the          information.        procurement        process.           number of          formed to reduce     including the        levels, invoicing,   effective design
                                                                                                                                                                                                                                  requirement                              plan (only         (Automated)        invoices, the      stock levels,        client (e.g. using   etc.                 of systems and
                                                                                                                                                                                                                                  planning                                 discussed          forecasts are      amount of stock,   order times and      EDI). The                                 processes and
                                                                                                                                                                                                                                  process                                  internally).       exchanged with     etc.               turnaround           evaluation                                the use of e-
                                                                                                                                                                                                                                  internally. There                                           these suppliers.                      times, and to        process is also                           tools and other
                                                                                                                                                                                                                                  is a formal                                                 Suppliers are                         improve internal     documented.                               innovative forms.
                                                                                                                                                                                                                                  internal                                                    also involved in                      accounting
                                                                                                                                                                                                                                  communication                                               the process of                        procedures, etc.
                                                                                                                                                                                                                                  structure in                                                optimising                            An action plan,
                                                                                                                                                                                                                                  which internal                                              operational                           implementation
                                                                                                                                                                                                                                  multi-disciplinary                                          purchasing.                           plan and
                                                                                                                                                                                                                                  teams are                                                                                         procedure for
                                                                                                                                                                                                                                  incorporated to                                                                                   evaluating
                                                                                                                                                                                                                                  agree with                                                                                        results are in
                                                                                                                                                                                                                                  suppliers the                                                                                     existence.
                                                                                                                                                                                                                                  determined by
Strategic process 7
Improving supplier performance and quality management
General description                                        Aspects             Notes                                                                                                                                    0 (N/A)                 1                   2                    3                    4                    5                     6                   7                   8                      9                   10
Buyers' reactive and pro-active/strategic activities   7.1 Existence of        Existence of a supplier performance improvement programme with or without the use of incentives (negative or positive)                                  Ad hoc initiatives                                                                                                                                                     Official ’zero
aimed at identifying opportunities for improvement         supplier                                                                                                                                                                    for supplier                                                                                                                                                           faults
and facilitating improvements in the supplier's            improvement                                                                                                                                                                 improvement                                                                                                                                                            programme’ for
performance and capacity.                                  programme                                                                                                                                                                   and no or limited                                                                                                                                                      critical
                                                                                                                                                                                                                                       programme for                                                                                                                                                          deliveries, incl.
                                                                                                                                                                                                                                       supplier                                                                                                                                                               incentives

                                                       7.2 Monitoring of       Extent to which monitoring of the supplier performance improvement programme is structured/systematic.                                                  No or little                              Ad hoc and                                                                                              Pro-active                               Joint training in order
                                                           improvement                                                                                                                                                                 structured follow                         reactive follow-                                                                                        approach and                             to learn from one
                                                           programme                                                                                                                                                                   up of                                     up of                                                                                                   managers                                 another
                                                                                                                                                                                                                                       improvement                               improvement                                                                                             specifically
                                                                                                                                                                                                                                       initiatives                               programmes only                                                                                         trained in
                                                                                                                                                                                                                                                                                                                                                                                         development in
                                                                                                                                                                                                                                                                                                                                                                                         the company
                                                       7.3 Supplier            Extent to which strategic suppliers have been assessed for relevant aspects (proportional) before entering into a contract.                             Strategic
                                                           certification       Suppliers who comply with the applicable definition in the purchasing policy are considered to be strategic suppliers.                                  suppliers have
                                                                                                                                                                                                                                       been assessed
                                                                                                                                                                                                                                       for relevant
                                                                                                                                                                                                                                       before entering
                                                                                                                                                                                                                                       into contracts
                                                       7.4 Supplier            The existence of a supplier performance assessment system (such as a vendor rating system) and evaluation of the measured                                                    Formal system        Identification of    Evidence a           Some audits          Audits and           Process control     Supplier             Advanced            Supplier evaluations
                                                           performance         performance with respect to terms of reference and contracts with suppliers. Supplier audits and process studies to evaluate                                                 for simple           poor                 working system       carried out on       process studies      system has been     assessments          quality             are organised
                                                           evaluation          current and future skills/qualities. Regular analysis of purchasing data (contract, quantitative and qualitative analyses)                                                   supplier             performance          that follows up      strategic            carried out on all   agreed with         carried out at       measurement
                                                                                                                                                                                                                                                            performance          (poor quality/late   corrective           suppliers            strategic            strategic           suppliers'           systems in use
                                                                                                                                                                                                                                                            assessment           delivery)            measures by the                           suppliers in         suppliers           premises (quick      (to assess the
                                                                                                                                                                                                                                                                                                      supplier (based                           order to fully                           scans)               costs of 'non
                                                                                                                                                                                                                                                                                                      on complaints                             evaluate current                                              quality')
                                                                                                                                                                                                                                                                                                      and supplier                              and future
                                                                                                                                                                                                                                                                                                      measurement).                             supplier
                                                       7.5 Identification of   Extent to which corrective action is defined on the basis of the outcomes of the evaluation process. Collaboration with suppliers                                            Little evidence of                  Corrective                                                           Evidence that       Particular focus Targets defined         Improvement
                                                           corrective action   aimed at reducing costs.                                                                                                                                                     analysis of these                   measures by                                                          corrective          on the most      for suppliers           programme
                                                                                                                                                                                                                                                            results and plans                   supplier (on the                                                     measures have       important                                (including terms of
                                                                                                                                                                                                                                                            for corrective                      basis of                                                             been planned (if    commodity/purch                          reference and follow-
                                                                                                                                                                                                                                                            action (by                          complaints and                                                       necessary)          ase families and                         up) set up jointly
                                                                                                                                                                                                                                                            supplier)                           supplier                                                                                 suppliers
                                                       7.6 Communication       Communication with supplier and other parties involved within and outside the organisation on the results of not only the                                                    Little evidence of Feedback on      Communication              Visit to suppliers   This information                                              Targets
                                                                               evaluation of the supplier's performance, analyses and corrective action to be taken by the supplier, but also the organisation                                              these results      poor performance of internal                to evaluate the      is documented,                                                communicated
                                                                               strategy and purchasing objectives.                                                                                                                                          being fed back                      complaints to              supplier and to      regularly                                                     to suppliers and
                                                                                                                                                                                                                                                            to suppliers                        supplier on the            communicate          updated and                                                   other parties
                                                                                                                                                                                                                                                                                                basis of                   the                  effectively                                                   involved
                                                                                                                                                                                                                                                                                                complaints                 organisation's       communicated
                                                                                                                                                                                                                                                                                                procedure                  strategy and         to the main
                                                                                                                                                                                                                                                                                                                           purchasing           parties involved

                                                       7.7 Complaints          The availability of a formal complaints procedure to enable complaints to be identified as efficiently as possible and to                                                                                              Formal                                                         Evaluation of
                                                           procedure           communicate on these matters with suppliers (complaints handling, claims, conflicts).                                                                                                                                  complaints                                                     complaints
                                                                                                                                                                                                                                                                                                      procedure has                                                  procedure
                                                                                                                                                                                                                                                                                                      been set up
                                                       7.8 Documentation       The existence of recorded information on the quality of the supplier's performance.                                                                                                                                                                              Information is       Statistical                              Evidence of
                                                                                                                                                                                                                                                                                                                                                documented           evidence of the                          achievement of
                                                                                                                                                                                                                                                                                                                                                                     stability/compete                        goals and
                                                                                                                                                                                                                                                                                                                                                                     nce of these                             improvement in
                                                                                                                                                                                                                                                                                                                                                                     suppliers or                             results
                                                                                                                                                                                                                                                                                                                                                                     evidence that
                                                                                                                                                                                                                                                                                                                                                                     measures have
                                                                                                                                                                                                                                                                                                                                                                     been planned
Summary                                                                                                                                                                                                            The process         No or limited        As 1, there is a     As 2,                As 3, a formal       As 4, visits to      As 5, there is       As 6, a process     As 7, the            As 8, an            As 9, supplier
                                                                                                                                                                                                                   does not apply to   programme for        formal system        communication        complaints           suppliers are        evidence that        control system      organisation         advanced quality    evaluations and joint
                                                                                                                                                                                                                   the organisation    supplier             for simple           with suppliers       procedure has        arranged to          the customer         has been agreed     takes a proactive    measurement         training is organised
                                                                                                                                                                                                                   or part of the      improvement.         measurement of       takes place on       been drawn up        evaluate the         has carried out      with strategic      approach to          system is in use.   to enable both sides
                                                                                                                                                                                                                   organisation.       Ad hoc initiatives   supplier             an ad hoc basis      to communicate       supplier and to      audits and           suppliers. There    supplier             As part of this,    to learn from one
                                                                                                                                                                                                                                       for supplier         performance.         in the case of       internal             communicate          process studies      is statistical      development.         the costs of ‘non   another and to draw
                                                                                                                                                                                                                                       improvement          There is little      poor                 complaints to        the                  with all strategic   evidence of the     Efforts are          quality’ are        up a joint
                                                                                                                                                                                                                                       with no or little    evidence of          performance          suppliers as         organisation's       suppliers in         stability/compete   directed in          measured and        improvement
                                                                                                                                                                                                                                       structured follow    these results        (poor quality,       efficiently as       strategy and         order to fully       nce of these        particular at the    targets are         programme
                                                                                                                                                                                                                                       up of                being fed back       late deliveries):    possible. There      purchasing           assess the           suppliers or        most important       defined and         (including terms of
                                                                                                                                                                                                                                       improvement          to suppliers with    reactive supplier    is (evidence of) a   objectives in a      current and          evidence that       commodity/purch      communicated        reference and follow-
                                                                                                                                                                                                                                       initiatives. For     analysis and         improvement.         working system       structured way.      future               corrective          ase families and     to the relevant     up).
                                                                                                                                                                                                                                       strategic            suggestions for                           that follows up      A number of          competence of        measures have       suppliers. The       suppliers and
                                                                                                                                                                                                                                       suppliers,           corrective action.                        corrective           strategic supplier   these suppliers.     been planned.       organisation has     the most
                                                                                                                                                                                                                                       relevant aspects                                               measures by the      audits are also      This information     The complaints      employees who        important parties
                                                                                                                                                                                                                                       have been                                                      supplier (based      carried out.         is documented,       procedure is        have been            involved. There
                                                                                                                                                                                                                                       checked on the                                                 on complaints                             regularly            evaluated.          specifically         is an official
                                                                                                                                                                                                                                       process side for                                               and supplier                              updated and                              trained for          ’zero faults
                                                                                                                                                                                                                                       the purposes of                                                measurement).                             effectively                              supplier             programme’ for
                                                                                                                                                                                                                                       the contract                                                                                             communicated                             development.         critical
                                                                                                                                                                                                                                       (including ISO,                                                                                          to the main                              Evaluation of        deliveries. Clear
                                                                                                                                                                                                                                       AQAP, audits).                                                                                           parties involved.                        suppliers takes      evidence of
                                                                                                                                                                                                                                                                                                                                                                                         place on site (for   achievement of
                                                                                                                                                                                                                                                                                                                                                                                         example quick        goals and
                                                                                                                                                                                                                                                                                                                                                                                         scans).              improvement in
Strategic process 8
Strategic cost management
General description                                         Aspects               Notes                                                                                                                                0 (N/A)               1                 2                    3                     4                5                      6                     7                     8                 9                     10
Total cost of ownership (TCO) = theory based            8.1 Cost improvement      Existence of cost improvement programmes                                                                                                          No cost           Management on        Promotion             Supplier          Task based             Structural use of                          Structured and     Systematic focus     Formal, structured
around the total cost involved in the entire life           programme                                                                                                                                                               improvement       the basis of total   campaign for          contracts contain budget for all         various cost                               formally           on integral cost     and documented
cycle of a product, i.e. not just the purchase price.                                                                                                                                                                               programmes or     cost of ownership    employees and         clauses that      projects in PPI        models, e.g. to                            organised          reduction with       decision making
                                                                                                                                                                                                                                    straightforward                        multi-disciplinary    encourage                                improve cost                               promotion          suppliers and        process for cost
                                                                                                                                                                                                                                    purchase price                         teams to              suppliers to                             structures                                 campaign to        clients              improvements that
                                                                                                                                                                                                                                    management                             generate cost         generate ideas                                                                      encourage                               covers the entire
                                                                                                                                                                                                                                    with the focus on                      saving ideas.         and targets for                                                                     suppliers to                            supply chain
                                                                                                                                                                                                                                    (price)                                                      cost reduction                                                                      generate cost-
                                                                                                                                                                                                                                    negotiations and                                             (efficiency                                                                         saving ideas
                                                                                                                                                                                                                                    the effect of                                                targets)
                                                        8.2 Impact of sales       Impact of the sales market on costs management. For example, are the prevailing prices in the market taken into account when                                                                                                        Targets set in      Purchasing price
                                                            market                defining targets.                                                                                                                                                                                                                   line with the       is in line with the
                                                            developments                                                                                                                                                                                                                                              market              market as a
                                                        8.3 Evaluation process Evaluation of the differences between standards and actual costs.                                                                                                                                                                                                                Measurement                              Task setting,
                                                                                                                                                                                                                                                                                                                                                                and analysis of                         measurement
                                                                                                                                                                                                                                                                                                                                                                results                                 and follow-up
                                                                                                                                                                                                                                                                                                                                                                                                        mechanisms in
                                                        8.4 Selection             Use of cost models, including requesting and assessing quotations.                                                                                                    TCO procedure                                                                     Purchasing uses
                                                            procedures                                                                                                                                                                                  used for some                                                                     cost models
                                                        8.5 Multi-disciplinary    Collaboration with various disciplines within the organisation and with suppliers and clients                                                                                            Multi-disciplinary    Limited              Client defines                            Joint teams set      Collaboration      Multi-disciplinary   All suppliers and
                                                            collaboration                                                                                                                                                                                                  collaboration         consultation with    maximum price                             up to achieve        with supplier in   teams with           (external) clients are
                                                                                                                                                                                                                                                                           within the            supplier on cost     for a specific                            cost reductions      order to           supplier and         involved in decision
                                                                                                                                                                                                                                                                           organisation, but     reduction            product or                                (supplier/purchas    generate cost      (external) client    making process on
                                                                                                                                                                                                                                                                           little supplier                            service                                   ing organisation)    saving ideas       involvement          cost improvements
                                                        8.6 Documentation         The presence of documents and other evidence to demonstrate the existence of specific activities                                                                                                               Little evidence of                       Evidence that       Evidence of cost-                         Evidence of          Decision making
                                                                                                                                                                                                                                                                                                 consultation                             purchasing price saving initiatives                           achievement of       process around cost
                                                                                                                                                                                                                                                                                                 (brainstorming)                          is in line with the and results                               goals and            improvements is
                                                                                                                                                                                                                                                                                                 with suppliers on                        market                                                        improvement in       documented
                                                                                                                                                                                                                                                                                                 cost reduction                                                                                         results

                                                        8.7 Communication         Consultations on cost structures and cost reducing measures with the parties involved                                                                                                    The focus of     Little evidence of                                               Brainstorming
                                                                                                                                                                                                                                                                           communication is consultation with                                                sessions with
                                                                                                                                                                                                                                                                           internal         supplier                                                         current supplier
                                                                                                                                                                                                                                                                                                                                                             and purchasing
                                                                                                                                                                                                                                                                                                                                                             organisation with
                                                                                                                                                                                                                                                                                                                                                             the aim of
                                                                                                                                                                                                                                                                                                                                                             reducing costs
                                                        8.9 Use of specific       The way in which a specific financing method, such as the accounts method (non depreciation) is used in the non profit sector                     Specific                                                                                              Use of cost        Cost analysis
                                                            financing methods                                                                                                                                                       methods of                                                                                            models that take takes into
                                                                                                                                                                                                                                    funding are not                                                                                       into account the account specific
                                                                                                                                                                                                                                    taken into                                                                                            specific           characteristics of
                                                                                                                                                                                                                                    account                                                                                               characteristics of funding
                                                                                                                                                                                                                                                                                                                                          funding            arrangements in
                                                                                                                                                                                                                                                                                                                                          arrangements       the not for profit

Summary                                                                                                                                                                                                           The process       No cost             As 1, the total    As 2, there is also   As 3, supplier       As 4, there is      As 5, structural      As 6, it is clear    As 7, there is a   As 8, multi-         As 9, there is a
                                                                                                                                                                                                                  does not apply    improvement         cost of            a promotion           contracts contain    clear evidence of   use is made of        that joint           structured and     disciplinary         formal, structured
                                                                                                                                                                                                                  to the            programmes or       ownership          campaign for          clauses that         task setting (in    various cost          brainstorming        formally           teams                and documented
                                                                                                                                                                                                                  organisation or   straightforward     (TCO) principle    employees and         encourage or         budgets) for PPI    models to select      sessions take        organised          systematically       decision making
                                                                                                                                                                                                                  part of the       purchase price      is used (e.g. in   multi-disciplinary    force suppliers      costs for all       suppliers and         place (between       promotion          work on integral     process for cost
                                                                                                                                                                                                                  organisation      management          supplier           teams to              to generate          projects. A         improve cost          the current          campaign to        cost reduction       improvements that
                                                                                                                                                                                                                                    with the focus on   selection). The    generate cost         ideas and            maximum price       structures. The       supplier and the     encourage          with the             covers the entire
                                                                                                                                                                                                                                    (price)             TCO procedure      saving ideas          targets for cost     that can be paid    purchase price        purchasing           suppliers to       involvement of       supply chain and in
                                                                                                                                                                                                                                    negotiations and    is also formally   (internal             reduction (e.g.      for a specific      is (and can be        organisation)        generate cost-     suppliers and        which all suppliers
                                                                                                                                                                                                                                    the effect of       used for           programmes).          efficiency           service or          shown to be) at       with the aim of      saving ideas.      (external)           involved and
                                                                                                                                                                                                                                    volumes.            important          There is little       targets). Limited    product is          least in line with    reducing costs.                         clients. There       (external) clients are
                                                                                                                                                                                                                                    Specific            products and/or    reason to believe     evidence of joint    calculated on the   the market.           There is                                are mechanisms       taken into
                                                                                                                                                                                                                                    methods of          'special'          that suppliers are    brainstorming        basis of a price    Costs are             evidence of cost-                       for task setting,    consideration.
                                                                                                                                                                                                                                    funding are not     purchases/projec   involved in           sessions             that is in line     analysed using        saving initiatives                      measurement
                                                                                                                                                                                                                                    taken into          ts (e.g. capital   formulating           (between the         with the market.    cost models that      and results.                            and follow-up.
                                                                                                                                                                                                                                    account.            purchases).        ideas. The focus      supplier and the                         take into account     Analysis of                             Clear evidence
                                                                                                                                                                                                                                                                           of communication      procuring                                the specific          costs, taking into                      of achievement
                                                                                                                                                                                                                                                                           is internal.          organisation)                            characteristics of    account the                             of goals and
                                                                                                                                                                                                                                                                                                 with the aim of                          funding               specific                                improvement in
                                                                                                                                                                                                                                                                                                 reducing costs.                          arrangements.         characteristics of                      results.
                                                                                                                                                                                                                                                                                                                                                                arrangements in
                                                                                                                                                                                                                                                                                                                                                                the not for profit
Support process 1
Strategic planning process and policy for procurement
General description                                      Aspects            Notes                                                                                                                                   0 (N/A)           1                    2                   3                    4                    5                     6                    7                   8                   9                    10
Purchasing policy reflects strategic objectives with 9.1 Team composition   Functional or multi-disciplinary team that takes the decision.                                                                                    Procurement                                                                                                                  Procurement
respect to purchasing. The purchasing plan                                                                                                                                                                                    plan drawn up                                                                                                                policy has been
(purchasing tactics) revolves around the activities                                                                                                                                                                           exclusively by                                                                                                               translated into
needed to realise these strategic objectives.                                                                                                                                                                                 purchasing.                                                                                                                  approved
                                                                                                                                                                                                                                                                                                                                                           plans agreed in

                                                 9.2 Documentation          Documentation of procurement policy.                                                                                                                                                       The purchasing                                                  Evidence of self    The                  Evidence that
                                                                                                                                                                                                                                                                       objectives and                                                  evaluation          procurement          outcomes of
                                                                                                                                                                                                                                                                       the relationship                                                                    policy is defined    discussions are
                                                                                                                                                                                                                                                                       with the                                                                            in the general       used to update
                                                                                                                                                                                                                                                                       organisation's                                                                      policy.              the procurement
                                                                                                                                                                                                                                                                       objectives are                                                                                           policy.
                                                                                                                                                                                                                                                                       explicitly stated
                                                                                                                                                                                                                                                                       in formal reports.
                                                 9.3 Understanding of       Developing an understanding of the market by researching the suppliers in the market and the products/services they supply.                                            Good                                                                                                                                             Evaluation of the
                                                     supplier market                                                                                                                                                                               understanding of                                                                                                                                 risk in the
                                                                                                                                                                                                                                                   relationships                                                                                                                                    suppliers market
                                                                                                                                                                                                                                                   and                                                                                                                                              forms an integral
                                                                                                                                                                                                                                                   opportunities in                                                                                                                                 part of the
                                                                                                                                                                                                                                                   the current                                                                                                                                      procurement
                                                                                                                                                                                                                                                   suppliers market.                                                                                                                                policy and the

                                                 9.4 Supplier               Differentiation between various suppliers and in approach to suppliers (e.g. evaluation of performance and improving purchasing).                 No system for        System for                                                                          System for
                                                     differentiation                                                                                                                                                          distinguishing       distinguishing                                                                      differentiating
                                                                                                                                                                                                                              between              between                                                                             between
                                                                                                                                                                                                                              suppliers (using     suppliers (using                                                                    suppliers is in
                                                                                                                                                                                                                              procurement          procurement                                                                         use (using
                                                                                                                                                                                                                              models) or to        models) and to                                                                      procurement
                                                                                                                                                                                                                              indicate the         indicate the                                                                        models) and for
                                                                                                                                                                                                                              approach             approach                                                                            indicating the
                                                                                                                                                                                                                              required for         required for                                                                        approach
                                                                                                                                                                                                                              different            different                                                                           required for
                                                                                                                                                                                                                              suppliers.           suppliers.                                                                          different
                                                 9.5 Communication          Communication of procurement policy to all parties involved.                                                                                                                                                                         Purchasing                                Commitment           Relevant parts of
                                                                                                                                                                                                                                                                                                                 policy                                    (support) for the    the procurement
                                                                                                                                                                                                                                                                                                                 communicated                              procurement          policy are
                                                                                                                                                                                                                                                                                                                 to internal                               policy is actively   communicated
                                                                                                                                                                                                                                                                                                                 stakeholders/little                       sought and           to and discussed
                                                                                                                                                                                                                                                                                                                  evidence of                              obtained from        with strategic
                                                                                                                                                                                                                                                                                                                 communication                             the lowest           suppliers.
                                                                                                                                                                                                                                                                                                                 of (parts of) the                         possible
                                                                                                                                                                                                                                                                                                                 procurement                               authorised body
                                                                                                                                                                                                                                                                                                                 policy to                                 (the lowest level
                                                                                                                                                                                                                                                                                                                 strategic                                 that can take
                                                                                                                                                                                                                                                                                                                 suppliers.                                these decisions)
                                                                                                                                                                                                                                                                                                                                                           and the most

                                                 9.6 Procurement plan       The procurement plan incorporating the tasks, responsibilities, procurement budget and the time parameters for the plan.                          No procurement       Procurement                              The                                        Some objectives                                                                  The outcomes of
                                                                                                                                                                                                                              plan is in place,    plan has been                            procurement                                in the                                                                           benchmark analyses
                                                                                                                                                                                                                              or a limited plan    based on a                               plan is                                    procurement                                                                      are used when
                                                                                                                                                                                                                              has been drawn       detailed                                 implemented as                             policy also focus                                                                drawing up the
                                                                                                                                                                                                                              up. It only          understanding of                         part of a formal                           on the internal                                                                  procurement policy
                                                                                                                                                                                                                              describes which      the suppliers                            budgeting and                              efficiency of the                                                                and procurement
                                                                                                                                                                                                                              activities need to   market and the                           evaluation                                 purchasing                                                                       plans. The
                                                                                                                                                                                                                              be carried out by    supplier base.                           process.                                   process in                                                                       procurement plan is
                                                                                                                                                                                                                              the different                                                                                            addition to                                                                      part of line
                                                                                                                                                                                                                              purchasing                                                                                               getting the most                                                                 organisation policies,
                                                                                                                                                                                                                              organisations.                                                                                           from supplier                                                                    not just the
                                                                                                                                                                                                                              Key policy                                                                                               alliances.                                                                       procurement plan.
                                                                                                                                                                                                                              principles are

                                                 9.7 Evaluation process     Process in which objectives and purchasing plans are compared against actual performance and the differences are analysed.                                                                                      Purchasing                                 Evaluation of                                                                    All objectives aimed
                                                                                                                                                                                                                                                                                            evaluation is part                         purchasing                                                                       at improving
                                                                                                                                                                                                                                                                                            of overall                                 objectives on the                                                                efficiency are taken
                                                                                                                                                                                                                                                                                            evaluation of the                          basis of self                                                                    into account in the
                                                                                                                                                                                                                                                                                            organisation/obje                          evaluation.                                                                      purchasing policy
                                                                                                                                                                                                                                                                                            ctives are                                 Improvement                                                                      and plan.
                                                                                                                                                                                                                                                                                            actively                                   plans are
                                                                                                                                                                                                                                                                                            compared                                   defined.
                                                                                                                                                                                                                                                                                            against the
                                                                                                                                                                                                                                                                                            actual situation
                                                                                                                                                                                                                                                                                            and if necessary
                                                                                                                                                                                                                                                                                            are adjusted by

                                                 9.8 Strategy               The procurement policy is in line with the general organisational strategy and planning with respect to facilities, financial policy,                                                      Purchasing           The                                                            The                                                          Objectives are based
                                                                            technical aspects, environmental and quality policies. In addition to incorporating ethical codes, the procurement policy also                                                             objectives are       procurement                                                    procurement                                                  on benchmarking.
                                                                            addresses issues of social responsibility (such as improving employment opportunities locally or promoting sustainable                                                                     clearly in line      policy is based                                                policy is part of
                                                                            purchasing). The procurement policy may also state that a 'truck system' applies to specific commodity/purchase families.                                                                  with the             on the general                                                 the general
                                                                                                                                                                                                                                                                       organisation's       policy.                                                        policy.
                                                                                                                                                                                                                                                                       objectives.          Purchasing
                                                                                                                                                                                                                                                                                            objectives are in
                                                                                                                                                                                                                                                                                            line with the
                                                                                                                                                                                                                                                                                            and other
                                                                                                                                                                                                                                                                                            Purchasing is
                                                                                                                                                                                                                                                                                            involved in
                                                                                                                                                                                                                                                                                            drafting budgets.
Summary   The process       No procurement       The                As 2, but the        As 3, but the       As 4, there is       As 5, evidence       As 6, the            As 7, and the       As 8, and           As 9, the outcomes
          does not apply    plan is in place,    procurement        purchasing           procurement         good                 that (self)          procurement          relevant parts of   evaluation of the   of benchmark
          to the            or a limited plan    plan has been      objectives are       plan is             communication        evaluations are      policy has been      the procurement     risk in the         analyses are used
          organisation or   has been drawn       based on a         clearly in line      implemented as      of procurement       used to              translated into      policy are          suppliers market    when drawing up the
          part of the       up, in which         detailed           with the             part of a formal    policy matters to    formulate            approved             communicated        forms an integral   procurement policy
          organisation.     case, it has been    understanding of   organisation's       budgeting and       stakeholders         procurement          procurement          to and discussed    part of the         and procurement
                            drawn up             the suppliers      objectives. The      evaluation          internally. Little   objectives and to    plans by multi-      with strategic      procurement         plans. All objectives
                            exclusively by       market and the     purchasing           process. The        evidence of          set priorities for   disciplinary         suppliers. There    policy and the      aimed at improving
                            purchasing. The      supplier base.     objectives and       procurement         communication        undertaking          sessions.            is evidence that    procurement         efficiency are taken
                            procurement          There is a good    the relationship     policy is based     of matters           improvement          Commitment           the outcomes of     plans.              into account in this
                            plan only            understanding of   with the             on the general      relating to the      initiatives. Some    (support) for the    the discussions                         process. These
                            describes which      relationships      organisation's       policy.             procurement          objectives in the    procurement          are used to                             objectives relate
                            activities need to   and                objectives are       Purchasing          policy to            procurement          policy is actively   update the                              partly to purchasing
                            be carried out by    opportunities in   explicitly stated    objectives are in   strategic            policy also focus    sought and           procurement                             and process
                            the different        the current        in formal reports.   line with the       suppliers.           on the internal      obtained from        policy (in the                          optimisation. The
                            purchasing           suppliers          Models such as       organisation's                           efficiency of the    the lowest           future).                                procurement plan is
                            organisations.       market. There is   BSC, INK or          and other                                purchasing           possible                                                     part of line
                            Key policy           a system for       EFQM are used        objectives.                              process in           authorised body                                              organisation policies,
                            principles are       distinguishing     for this purpose.    Objectives are                           addition to          (the lowest level                                            not just purchasing.
                            used. There is       between                                 actively                                 getting the most     that can take
                            no system for        suppliers (using                        compared                                 from supplier        these decisions)
                            distinguishing       procurement                             against the                              alliances. A         and the most
                            between              models) and to                          actual situation                         system for           important
                            suppliers (using     indicate the                            and if necessary                         differentiating      stakeholders.
                            procurement          approach                                are adjusted by                          between              The
                            models) or to        required for                            management.                              suppliers is in      procurement
                            indicate the         different                               Purchasing is                            use (using           policy forms part
                            approach             suppliers.                              involved in                              procurement          of and is
                            required for                                                 drafting budgets.                        models) and for      recorded in the
                            different                                                                                             indicating the       general policy.
                            suppliers.                                                                                            approach
                                                                                                                                  required for
Support process 2
Structure of the purchasing organisation
General description                                         Aspects              Notes                                                                                                                                   0 (N/A)             1                  2                    3                4                       5                   6                    7                    8                    9                     10
Structure of the purchasing organisation, i.e. the      10. Multi-disciplinary   Partnerships with the various disciplines within the organisation and with suppliers and clients.                                                 No or little        Purchasing           Clarity about    Some multi-             Different multi-                         All necessary        Multi-disciplinary   Multi-disciplinary
allocation of tasks, responsibilities and authorities   1   collaboration                                                                                                                                                          coordination and    expertise is         roles and the    disciplinary            disciplinary                             multi-disciplinary   teams also           teams work in
throughout the organisation.                                                                                                                                                                                                       partnership         involved in all      responsibilities collaboration           teams have                               teams have           influence            partnership with
                                                                                                                                                                                                                                   between roles       purchasing and       of team members                          been put in                              been put in          developments         the client and
                                                                                                                                                                                                                                   within the          expenditure                                                   place at the level                       place. A steering    with contracted      the supplier to
                                                                                                                                                                                                                                   organisation,       flows and is also                                             of the part of the                       group provides       suppliers            achieve
                                                                                                                                                                                                                                   between             informed at the                                               organisation                             guidance to the                           improvements/in
                                                                                                                                                                                                                                   different           appropriate time                                                                                       teams (group-                             novations
                                                                                                                                                                                                                                   organisations       in order to                                                                                            wide)
                                                                                                                                                                                                                                   and between the     contribute to the
                                                                                                                                                                                                                                   various             supplier
                                                                                                                                                                                                                                   purchasing          selection and
                                                                                                                                                                                                                                   organisations of    contracting
                                                                                                                                                                                                                                   parts of            process.
                                                        10. Evaluation           Evaluation of the level and performance of purchasing within the organisation.                                                                                                                                                                                               Steering group
                                                        2                                                                                                                                                                                                                                                                                                     evaluates the
                                                                                                                                                                                                                                                                                                                                                              performance and
                                                                                                                                                                                                                                                                                                                                                              the level of the
                                                                                                                                                                                                                                                                                                                                                              purchasing role
                                                                                                                                                                                                                                                                                                                                                              within the
                                                                                                                                                                                                                                                                                                                                                              organisation and
                                                                                                                                                                                                                                                                                                                                                              takes decisions
                                                                                                                                                                                                                                                                                                                                                              about suitable
                                                                                                                                                                                                                                                                                                                                                              participants for
                                                                                                                                                                                                                                                                                                                                                              these teams

                                                        10. Responsibility       Extent of responsibility: from implementation to a more strategic/responsible role, with a differentiation between tactical and                   The purchasing      Purchasing         Purchasing has                             Supplier             strategic                                                                          Role separation
                                                        3                        operational activities. Strategic activities include defining policy and the main aspects of supplier management. Tactical activities             role is primarily   expertise is       both tactical and                          evaluation,          purchasing is                                                                      between strategic,
                                                                                 include contracting, product design, market research. Operational activities include the ordering and receipt of products.                        executive and       involved in all    strategic role                             selection and        implemented as                                                                     tactical and
                                                                                                                                                                                                                                   administrative      tactical and                                                  integration in       a separate set of                                                                  operational
                                                                                                                                                                                                                                                       operational                                                   product process      activities (in                                                                     purchasing
                                                                                                                                                                                                                                                       purchasing                                                    innovation takes     addition to
                                                                                                                                                                                                                                                       activities in good                                            place in local       tactical and
                                                                                                                                                                                                                                                       time.                                                         (organisation        operational
                                                                                                                                                                                                                                                                                                                     part) teams.         activities)
                                                        10. Documentation        The availability of documents and other evidence to demonstrate the existence of specific activities (including the reasoning                                         Little evidence of                                                                 Formal evidence
                                                        4                        behind a decision).                                                                                                                                                   the existence of                                                                   of strategic
                                                                                                                                                                                                                                                       strategic                                                                          purchasing
                                                        10. Management level     Position of purchasing management within the organisation and level of the organisation at which the responsibility for                                                                    Purchasing is         Some evidence                                               Purchasing is
                                                        5                        purchases is held.                                                                                                                                                                         represented at        of coordination                                             represented on
                                                                                                                                                                                                                                                                            strategic level for   of the                                                      policy-defining
                                                                                                                                                                                                                                                                            which a member        purchasing role                                             committees at
                                                                                                                                                                                                                                                                            of the                across parts of                                             group level
                                                                                                                                                                                                                                                                            management            the organisation
                                                                                                                                                                                                                                                                            team (MT) holds
                                                        10. Optimisation of      Optimisation of the purchasing organisation by distributing purchasing tasks, taking into account the purchasing portfolio and                    Purchasing                                                     Purchasing                              Distribution of                                                                    Role separation
                                                        6   purchasing           characteristics of the organisation.                                                                                                              tasks are                                                      tasks are                               purchasing                                                                         between strategic,
                                                                                                                                                                                                                                   distributed to a                                               distributed in a                        tasks fully                                                                        tactical and
                                                                                                                                                                                                                                   (very) limited                                                 reasonably                              coordinated                                                                        operational
                                                                                                                                                                                                                                   extent,                                                        coordinated way                                                                                                            purchasing, and
                                                                                                                                                                                                                                   distribution is                                                                                                                                                                           between the various
                                                                                                                                                                                                                                   uncoordinated.                                                                                                                                                                            disciplines
                                                        10. Purchasing           Extent to which the purchasing organisation structure is in line with the general organisation strategy, objectives and structure,                Not in line                              Some of the                                                                                                                                      Purchasing
                                                        7   organisation         and the extent to which the purchasing structure supports strategic, tactical and operational purchasing. A specific organisation                                                          purchasing                                                                                                                                       organisation is fully
                                                                                 configuration has been selected on the strength of structural variables, e.g. centralised, decentralised or coordinated.                                                                   organisation is in                                                                                                                               in line with the
                                                                                                                                                                                                                                                                            line with the                                                                                                                                    organisation's policy,
                                                                                                                                                                                                                                                                            policy,                                                                                                                                          objectives and
                                                                                                                                                                                                                                                                            objectives and                                                                                                                                   structure
                                                                                                                                                                                                                                                                            structure of the
                                                        10. Communication        Extent to which the purchasing organisation structure is communicated to stakeholders.                                                            The distribution                                               The distribution
                                                        9                                                                                                                                                                          of purchasing                                                  of purchasing
                                                                                                                                                                                                                                   tasks is not                                                   tasks is
                                                                                                                                                                                                                                   communicated                                                   communicated
                                                                                                                                                                                                                                   to interested                                                  to stakeholders.
                                                        10. Policy relating to   Formalisation of the policy with respect to partnerships between parts of the organisation with different basic principles.                       No policy           Some thought         Formal policy                            Evaluation of the                                             Identification of
                                                        8   partnerships                                                                                                                                                                               has been given       covering the                             current policy on                                             possible areas
                                                                                                                                                                                                                                                       to possible          approach to                              partnerships                                                  for improvement
                                                                                                                                                                                                                                                       partnerships         partnerships                                                                                           and further
                                                                                                                                                                                                                                                                            with other (parts                                                                                      refining of the
                                                                                                                                                                                                                                                                            of) organisations                                                                                      partnership
                                                                                                                                                                                                                                                                            with different                                                                                         policy
                                                                                                                                                                                                                                                                            basic principles.
Summary   The process       Little or no       Purchasing          As 2, purchasing      As 3, with some     As 4, a number       As 5, strategic     As 6, all the       As 7, multi-        As 8, multi-       The current
          does not apply    coordination       expertise is        fulfils both a        evidence of         of multi-            purchasing is       necessary multi-    disciplinary        disciplinary       purchasing
          to the            and/or             involved in all     tactical and a        coordination of     disciplinary         implemented as      disciplinary        teams also          teams work in      organisation is in line
          organisation or   partnership        purchasing and      strategic role.       the purchasing      teams have           a separate set of   teams have          influence           partnership with   with the policy,
          part of the       between the        expenditure         There is clarity      role across parts   been put in          activities in       been put in         developments        the client and     objectives and
          organisation.     purchasing roles   flows and is also   about roles and       of the              place at the level   addition to         place. A steering   with contracted     the supplier to    structure of the
                            within the         informed at the     the                   organisation.       of the part of the   tactical and        group provides      suppliers.          achieve            organisation. The
                            organisation and   appropriate time    responsibilities      Purchasing          organisation to      operational         guidance to the     Identification of   improvements/in    purchasing
                            between other      in order to         of team               tasks are           support supplier     purchasing          teams group-        possible areas      novations.         organisation
                            roles. The         contribute to the   members.              distributed in a    evaluation,          activities.         wide,               for improvement                        maximises strategic,
                            purchasing role    supplier            Purchasing is         reasonably          selection and        Typical strategic   coordinates         and further                            tactical and
                            is primarily       selection and       represented at        coordinated way     integration in       purchasing          decision making     refining of the                        operational
                            executive and      contracting         strategic level for   and are             processes for        activities are      between the         partnership                            purchasing (role
                            administrative.    process. Tactical   which a member        communicated        product and          carried out         teams, evaluates    policy.                                separation takes
                            Purchasing         purchasing has      of the                to stakeholders.    process              formally and        the position and                                           place within this).
                            tasks are          been                management            Some multi-         development.         within a            the level of the                                           Role separation also
                            distributed to a   implemented as      team (MT) holds       disciplinary        The current          structure, for      purchasing role                                            takes place between
                            limited extent     a separate group    ultimate              teams to support    policy on            example             within the                                                 the different
                            only to achieve    of activities in    responsibility.       purchasing          partnerships is      carrying out        organisation and                                           disciplines.
                            leverage,          addition to         Some of the           processes.          evaluated.           fundamental         takes decisions
                            distribution is    operational         purchasing                                                     market research     about suitable
                            uncoordinated      purchasing.         organisation is in                                             or technical        participants in
                            and is not         There is little     line with the                                                  research and        these teams.
                            communicated.      evidence of         policy,                                                        developing a        Purchasing is
                            There is no        strategic           objectives and                                                 strategy for each   represented on
                            policy for         purchasing          structure of the                                               commodity/purch     policy-defining
                            partnership        activities. Some    organisation.                                                  ase family. The     committees at
                            arrangements.      thought has         Formal policy                                                  distribution of     group level.
                                               been given to       covering the                                                   purchasing
                                               possible            approach to                                                    tasks to achieve
                                               partnerships        partnerships                                                   leverage is fully
                                               with other          with other (parts                                              coordinated.
                                               organisations (or   of) organisations
                                               parts of            with different
                                               organisations)      basic principles.
                                               and how this
                                               could work out in
Support process 3
General description   Aspects   Notes   0 (N/A)   1   2   3   4   5   6   7   8   9   10
Support process 4
Performance indicators for purchasing
General description                                    Aspects            Notes                                                                                                                          0 (N/A)            1                   2                   3                   4                    5                   6              7                     8                    9                   10
Information that provides an understanding of   12.1   Indicators         Use of performance indicators to monitor supplier and purchasing performance (including financial and quality indicators).               No supplier                              Formal criteria                         Wide-ranging        Performance                         Qualitative and       Purchasing
supplier performance                                                                                                                                                                                               performance                              and a system in                         integrated set of   indicators in                       quantitative          performance
                                                                                                                                                                                                                   indicators or                            place to identify                       performance         place for                           (TCO)                 indicators form
                                                                                                                                                                                                                   basic set of                             the suppliers                           indicators in       measuring the                       performance           part of an
                                                                                                                                                                                                                   indicators (to                           whose                                   place to            efficiency of                       indicators in         integrated set of
                                                                                                                                                                                                                   evaluate the                             performance                             measure the         purchasing                          place for the         organisational
                                                                                                                                                                                                                   performance of                           should be                               performance of      processes (for                      entire lifecycle of   performance
                                                                                                                                                                                                                   suppliers: e.g.                          measured.                               suppliers in the    optimising                          the purchased         indicators
                                                                                                                                                                                                                   quality, price                                                                   operational and     purchasing                          product.
                                                                                                                                                                                                                   changes,                                                                         improvement         processes)
                                                                                                                                                                                                                   timeliness of                                                                    process
                                                                                                                                                                                                                   deliveries and
                                                                                                                                                                                                                   availability of
                                                                                                                                                                                                                   support) and
                                                12.2                      Extent to which purchasing performance indicators are in line with purchasing policy and the organisation's objectives.                  indicators           Purchasing
                                                       Integration of
                                                       performance                                                                                                                                                                      performance
                                                       indicators and                                                                                                                                                                   indicators are in
                                                       objectives                                                                                                                                                                       accordance with
                                                                                                                                                                                                                                        the procurement
                                                                                                                                                                                                                                        policy and the

                                                12.3   Evaluation         Measuring actual quality and quantity against target and analysis of the differences on the basis of performance indicators,             Supplier                                 Frequent                                                                     Self-evaluations   Measurement of        Purchasing          Measured values are
                                                                          including indicators such as price, quality, delivery service. TCO should also be into account.                                          performance                              evaluation of                                                                are organised on   aspects such as       performance         used to identify,
                                                                                                                                                                                                                   indicators are                           suppliers'                                                                   a regular basis    price, quality,       indicators are      isolate and analyse
                                                                                                                                                                                                                   measured and                             performance.                                                                 to measure the     delivery service      regularly (at       the most important
                                                                                                                                                                                                                   compared                                                                                                              maturity of        and the costs of      least once a        product cost drivers
                                                                                                                                                                                                                   against targets                                                                                                       purchasing         non-                  quarter) and        in the entire supply
                                                                                                                                                                                                                                                                                                                                                            performance by        formally            chain together with
                                                                                                                                                                                                                                                                                                                                                            the supplier. The     evaluated at        suppliers and
                                                                                                                                                                                                                                                                                                                                                            performance           management          customers.
                                                                                                                                                                                                                                                                                                                                                            measures are          level in formal
                                                                                                                                                                                                                                                                                                                                                            used for future       management
                                                                                                                                                                                                                                                                                                                                                            purchasing            reports (using
                                                                                                                                                                                                                                                                                                                                                            plans (sourcing),     tools such as
                                                                                                                                                                                                                                                                                                                                                            new                   Business
                                                                                                                                                                                                                                                                                                                                                            development           Balanced
                                                                                                                                                                                                                                                                                                                                                            plans and             Scorecard,
                                                                                                                                                                                                                                                                                                                                                            continuous            EFQM or INK).
                                                                                                                                                                                                                                                                                                                                                            activities, in
                                                                                                                                                                                                                                                                                                                                                            accordance with
                                                12.4   Documentation      Availability of documents and other evidence to demonstrate the existence of specific activities.                                                             Written evidence                                                                Performance
                                                                                                                                                                                                                                        that indicators                                                                 indicators to
                                                                                                                                                                                                                                        are in                                                                          measure the
                                                                                                                                                                                                                                        accordance with                                                                 efficiency of
                                                                                                                                                                                                                                        purchasing and                                                                  purchasing
                                                                                                                                                                                                                                        organisational                                                                  processes have
                                                                                                                                                                                                                                        objectives                                                                      been defined
                                                                                                                                                                                                                                                                                                                        and explicitly

                                                12.5   Communication      Providing feedback on performance to stakeholders, including suppliers.                                                                                                           Feedback on                                                 Performance                                               Formal
                                                                                                                                                                                                                                                            actual                                                      indicators are                                            evaluation at
                                                                                                                                                                                                                                                            performance                                                 communicated                                              management
                                                                                                                                                                                                                                                            relative to                                                 to and                                                    level via formal
                                                                                                                                                                                                                                                            agreed                                                      understood by                                             management
                                                                                                                                                                                                                                                            performance is                                              the whole                                                 reports.
                                                                                                                                                                                                                                                            given to direct                                             organisation.
                                                12.6   Improvement plan Extent to which improvement plans are developed on the basis of measured performance values.                                                                                                            Measured                                                                    Improvement
                                                                                                                                                                                                                                                                                values are used                                                             plans based on
                                                                                                                                                                                                                                                                                to prepare                                                                  evaluations
                                                                                                                                                                                                                                                                                general plans for                                                           resulting in
                                                                                                                                                                                                                                                                                improvement                                                                 continual
                                                                                                                                                                                                                                                                                together with                                                               improvements in
                                                                                                                                                                                                                                                                                suppliers                                                                   results.
                                                12.7   Classification     Classification system for purchased products.                                                                                            A system for
                                                       system                                                                                                                                                      grouping
                                                                                                                                                                                                                   ase families is in
Summary   The process       No supplier          As 1, and there     As 2, there are     As 3, the           As 4, and there     As 5, and there     As 6, and self-    As 7, there are       As 8, and the       Measured values are
          does not apply    performance          is written          formal criteria     measured            is a wide-          are indicators in   evaluations are    qualitative and       purchasing          used to identify,
          to the            indicators or        evidence that       and a system in     values are used     ranging             place for           organised on a     quantitative          performance         isolate and analyse
          organisation or   basic set of         the purchasing      place to identify   to prepare          integrated set of   measuring the       regular basis to   (TCO)                 indicators form     the most important
          part of the       indicators (to       performance         the suppliers       general plans for   performance         efficiency of       measure the        performance           part of an          product cost drivers
          organisation.     evaluate the         indicators are in   whose               improvement         indicators in       purchasing          maturity of        indicators in         integrated set of   in the entire supply
                            performance of       accordance with     performance         together with       place to            processes (for      purchasing.        place for the         organisational      chain together with
                            suppliers: e.g.      the procurement     should be           suppliers.          measure the         optimising          Benchmarking is    entire lifecycle of   performance         suppliers and
                            quality, price       policy and the      measured.                               performance of      purchasing          also used.         the purchased         indicators. The     customers.
                            changes,             organisation's      Feedback on                             suppliers in the    processes). The                        product. These        indicators are
                            timeliness of        objectives.         actual                                  operational and     performance                            indicators            regularly (at
                            deliveries and                           performance                             improvement         indicators are                         include price,        least once a
                            availability of                          relative to                             process.            communicated                           quality, delivery     quarter) and
                            support) and                             agreed                                                      to and                                 service and the       formally
                            purchasing                               performance is                                              understood by                          costs of non-         evaluated at
                            performance                              given to direct                                             the whole                              performance by        management
                            indicators. The                          stakeholders                                                organisation.                          the supplier. The     level in formal
                            supplier                                 and regularly                                                                                      performance           management
                            performance                              evaluated.                                                                                         measures are          reports (using
                            indicators are                                                                                                                              used for future       tools such as
                            measured and                                                                                                                                purchasing            Business
                            compared                                                                                                                                    plans (sourcing),     Balanced
                            against targets.                                                                                                                            new                   Scorecard,
                            A system for                                                                                                                                development           EFQM or INK).
                            grouping                                                                                                                                    plans and
                            commodity/purch                                                                                                                             continuous
                            ase families is in                                                                                                                          improvement
                            use.                                                                                                                                        activities, in
                                                                                                                                                                        accordance with
                                                                                                                                                                        the regulations.
                                                                                                                                                                        The results
                                                                                                                                                                        show constant
Support process 5
Information technology integration
General description                                    Aspects            Notes                                                                                                                                 0 (N/A)              1                    2                  3              4                    5                   6                  7                   8                    9                   10
Development and use of information technology   13.1   Purchasing         Advanced purchasing information system in use (contract/creditor database/liability accounts/purchasing management reports,                        No purchasing       There is a stand   The purchasing                      Information        Information         Information        If applicable,        Internet
(IT) for purchasing.                                   information        and use of e-procurement technology such as EDI). Purchasing system must be linked to financial system.                                            information         alone              information                         system supports    systems that        system supports    information           functionalities
                                                       system                                                                                                                                                                system is in use.   purchasing         system forms                        the involvement    facilitate          strategic          systems               are extensively
                                                                                                                                                                                                                             The purchasing      information        part of the                         of suppliers in    purchasing          decision making.   facilitate supplier   used (e-
                                                                                                                                                                                                                             department does     system solely      integral                            the order          control. Use of                        involvement in        commerce,
                                                                                                                                                                                                                             not have a          used for           organisation's                      fulfilment         data warehouses                        product               supplier
                                                                                                                                                                                                                             network             operational        information                         process. Links     that support                           development           selection, market
                                                                                                                                                                                                                             connection.         purchasing         system.                             that transcend     volume-                                (e.g. CAD/CAM)        research, e-
                                                                                                                                                                                                                                                 processes.                                             the organisation   bundling,                                                    auctions and e-
                                                                                                                                                                                                                                                                                                        such as extranet   standardisation                                              invoicing)
                                                                                                                                                                                                                                                                                                        and EDI are in     and
                                                                                                                                                                                                                                                                                                        use.               centralisation of
                                                                                                                                                                                                                                                                                                                           ase family

                                                13.2   Optimisation of    Extent to which information systems are used to optimise purchasing processes. For example, information systems can support                                                                                                                      Information         Information
                                                       processes          the strategic purchasing role by facilitating volume bundling, standardisation and centralisation of commodity/purchase family                                                                                                                   systems support     system supports
                                                                          management and decentralisation of ordering.                                                                                                                                                                                                     the strategic       and analysis
                                                                                                                                                                                                                                                                                                                           purchasing (role)   processes (e.g.
                                                                                                                                                                                                                                                                                                                                               cost analysis

                                                13.3   Purchasing         Extent to which information systems are used to measure performance indicators.                                                                                                                            Purchasing                                                                   Performance
                                                       performance                                                                                                                                                                                                                   performance                                                                  indicators are
                                                       indicators                                                                                                                                                                                                                    indicators are                                                               used to draw
                                                                                                                                                                                                                                                                                     automatically                                                                comparisons
                                                                                                                                                                                                                                                                                     measured and                                                                 with other
                                                                                                                                                                                                                                                                                     presented by the                                                             organisations
                                                                                                                                                                                                                                                                                     information                                                                  and to learn from
                                                                                                                                                                                                                                                                                     system                                                                       these

                                                13.4   Documentation      Availability of documents and other evidence to demonstrate the existence of specific activities. These documents can be used                                                                              Evidence that                         Evidence of the                                              Evidence that       Evidence of
                                                                          for knowledge management.                                                                                                                                                                                  purchasing                            fact that data                                               internet            participation in
                                                                                                                                                                                                                                                                                     performance                           warehouses are                                               functionalities     information
                                                                                                                                                                                                                                                                                     indicators are                        used                                                         are extensively     system/information
                                                                                                                                                                                                                                                                                     automatically                                                                                      used.               technology
                                                                                                                                                                                                                                                                                     measured and                                                                                                           management
                                                                                                                                                                                                                                                                                     presented by the
                                                13.5   Position within    Collaboration with IS/IT management to identify IT system requirements.                                                                                                                                                                                                                                                           Evidence of formal
                                                       the organisation                                                                                                                                                                                                                                                                                                                                     and proactive
                                                                                                                                                                                                                                                                                                                                                                                                            collaboration with
                                                                                                                                                                                                                                                                                                                                                                                                            information system
                                                                                                                                                                                                                                                                                                                                                                                                            technology (IT)
                                                                                                                                                                                                                                                                                                                                                                                                            management to
                                                                                                                                                                                                                                                                                                                                                                                                            identify purchasing
                                                                                                                                                                                                                                                                                                                                                                                                            requirements and to
                                                                                                                                                                                                                                                                                                                                                                                                            implement strategies

                                                13.6   IS/IT purchasing   Availability of IS/IT policy for purchasing aligned to the general IS/IT policy.                                                                                                                                                                                                                                           IS/IT policy is
                                                       policy                                                                                                                                                                                                                                                                                                                                        aligned to IS/IT
                                                                                                                                                                                                                                                                                                                                                                                                     policy for the entire
Summary                                                                                                                                                                                                    The process       No purchasing       There is a stand   The purchasing   As 3, there is     As 4, and the      As 5, there are     As 6, information As 7, if            As 8, there is  As 9, there is
                                                                                                                                                                                                           does not apply    information         alone              information      evidence that      information        information         systems support applicable,           evidence that   evidence of formal
                                                                                                                                                                                                           to the            system is in use.   purchasing         system forms     purchasing         system supports    systems that        strategic         information         internet        and proactive
                                                                                                                                                                                                           organisation or   The purchasing      information        part of the      performance        the involvement    facilitate          decision making. systems              functionalities collaboration with
                                                                                                                                                                                                           part of the       department does     system solely      integral         indicators are     of suppliers in    purchasing                            facilitate supplier are extensively information system
                                                                                                                                                                                                           organisation.     not have a          used for           organisation's   automatically      the order          control. There is                     involvement in      used (e-        (IS)/information
                                                                                                                                                                                                                             network             operational        information      measured and       fulfilment         evidence of the                       product             commerce,       technology (IT)
                                                                                                                                                                                                                             connection.         purchasing         system.          presented by the   process. Links     use of data                           development         supplier        management to
                                                                                                                                                                                                                                                 processes.                          information        that transcend     warehouses for                        (e.g. CAD/CAM). selection, market identify purchasing
                                                                                                                                                                                                                                                                                     system.            the organisation   example to                            Performance         research, e-    requirements and to
                                                                                                                                                                                                                                                                                                        such as extranet   support the                           indicators are      auctions and e- implement
                                                                                                                                                                                                                                                                                                        and EDI are in     strategic                             used to draw        invoicing).     strategies, an IS/IT
                                                                                                                                                                                                                                                                                                        use.               purchasing                            comparisons                         policy is in place that
                                                                                                                                                                                                                                                                                                                           (function) using                      with other                          is aligned to the IS/IT
                                                                                                                                                                                                                                                                                                                           volume                                organisations                       policy of the whole
                                                                                                                                                                                                                                                                                                                           bundling,                             and to learn from                   organisation.
                                                                                                                                                                                                                                                                                                                           standardisation                       these.
                                                                                                                                                                                                                                                                                                                           centralisation of
                                                                                                                                                                                                                                                                                                                           ase family
Support process 6
Human resource management (HRM)
General description                          Aspects               Notes                                                                                                                              0 (N/A)              1               2                    3                    4                   5                 6                    7                   8                  9                    10
Development of knowledge and skills   14.1   HRM support           Availability of human resource management (HRM) support for the purchasing process (= purchasing role, in this case not the                  little or no HRM                                            HRM is involved     Specific HRM                                                                   Information
(management of competences such as                                 buyer).                                                                                                                                      support for the                                             in individual       policy for                                                                     systems for
knowledge, attitude and skills)                                                                                                                                                                                 purchasing                                                  evaluation of       purchasing,                                                                    knowledge
                                                                                                                                                                                                                process.                                                    knowledge and       including                                                                      management are
                                                                                                                                                                                                                                                                            skills              objectives,                                                                    used across the
                                                                                                                                                                                                                                                                                                succession                                                                     individual parts
                                                                                                                                                                                                                                                                                                planning,                                                                      of the
                                                                                                                                                                                                                                                                                                training,                                                                      organisation
                                                                                                                                                                                                                                                                                                recruitment and

                                      14.2   Purchasing profiles   Availability of purchasing profiles including job descriptions and competences. Profiles are used for recruitment, selection and                                No or limited                            Job profiles are                                                                A career policy
                                                                   development.                                                                                                                                                    availability of up                       used.                                                                           is actively
                                                                                                                                                                                                                                   to date profiles                         Recruitment,                                                                    pursued that
                                                                                                                                                                                                                                   for the                                  selection and                                                                   transcends the
                                                                                                                                                                                                                                   purchasing role                          training based                                                                  boundaries of
                                                                                                                                                                                                                                   (incl. job                               on analysis of                                                                  roles
                                                                                                                                                                                                                                   descriptions and                         required skills
                                                                                                                                                                                                                                   for recruitment
                                                                                                                                                                                                                                   and selection
                                      14.3   Training              Extent to which training is used to develop buyers' knowledge and skills.                                                                    No development     No personal                              Training based                                             Individual
                                                                                                                                                                                                                of competences     competence                               on analysis of                                             training and
                                                                                                                                                                                                                                   development                              required skills                                            career planning

                                      14.4   Multi-disciplinary    Individual objectives are formulated that go beyond the limits of the role and the organisation.                                                                                                                                                                                         Career policy                         Multi-disciplinary
                                             approach                                                                                                                                                                                                                                                                                                       that transcends                       appraisal cycles
                                                                                                                                                                                                                                                                                                                                                            the boundaries
                                                                                                                                                                                                                                                                                                                                                            of roles
                                      14.5   Evaluation            Evaluation and analysis of the differences between actual individual and team performance and individual targets.                                               Each buyer has       Appraisal and       Continuous and      Understanding      Purchasing is       Personal             Organisation       The part of the    Individuals are
                                                                                                                                                                                                                                   an individual        remuneration        formal process      of the             formally            development          actively pursues   organisation       evaluated in multi-
                                                                                                                                                                                                                                   appraisal and        system is related   of appraisal of     competences        included in the     plans are used       a career policy    actively pursues   disciplinary appraisal
                                                                                                                                                                                                                                   individual           to purchasing       individual skills   and specialised    annual (as a        based on the         that transcends    a career policy    cycles take place.
                                                                                                                                                                                                                                   targets are set      performance.        (required versus    knowledge          rule)               purchasing           the boundaries     that transcends    Team targets are set
                                                                                                                                                                                                                                                        There is an         available).         available within   management          profile, disparity   of positions       the boundaries     and regularly
                                                                                                                                                                                                                                                        explicit            Assessment of       the                development         analysis and         (within the part   of the             evaluated on the
                                                                                                                                                                                                                                                        relationship        competence          organisation's     review of all the   staff appraisals     of the             organisation       basis of a formal
                                                                                                                                                                                                                                                        between the                             workforce that     different                                organisation)                         process
                                                                                                                                                                                                                                                        achievement of                          could be           departments
                                                                                                                                                                                                                                                        purchasing                              employed in
                                                                                                                                                                                                                                                        targets and the                         purchasing
                                                                                                                                                                                                                                                        outcomes of staff                       teams
                                                                                                                                                                                                                                                        Appraisal and
                                                                                                                                                                                                                                                        plans are partly
                                                                                                                                                                                                                                                        related to the
                                                                                                                                                                                                                                                        performance of
                                                                                                                                                                                                                                                        the multi-
                                                                                                                                                                                                                                                        disciplinary team
                                      14.6   Remuneration          The method by which the buyer's remuneration is determined.                                                                                                     Buyers'              The
                                                                                                                                                                                                                                   remuneration is      remuneration
                                                                                                                                                                                                                                   set individually     system is linked
                                                                                                                                                                                                                                                        to purchasing

                                      14.7   Communication         Communication of personal development plan by purchasing manager to the individual.                                                                                                                                                                                 The personal
                                                                                                                                                                                                                                                                                                                                       plan is evaluated
                                                                                                                                                                                                                                                                                                                                       at regular
                                                                                                                                                                                                                                                                                                                                       intervals by
                                                                                                                                                                                                                                                                                                                                       manager and
                                      14.8   Teams                 Extent of team based performance.                                                                                                                                                    Appraisal and                                                                                                                             Team targets are set
                                                                                                                                                                                                                                                        remuneration                                                                                                                              and regularly
                                                                                                                                                                                                                                                        system linked to                                                                                                                          evaluated on the
                                                                                                                                                                                                                                                        purchasing                                                                                                                                basis of a formal
                                                                                                                                                                                                                                                        performance                                                                                                                               process.

                                      14.9   Documentation         Availability of documents and other evidence to demonstrate the existence of specific activities.                                            No or limited      Little evidence of   Evidence that       Evidence that                                              Evidence that
                                                                                                                                                                                                                evidence of        personal             remuneration is     job profiles are                                           personal
                                                                                                                                                                                                                HRM support        competence           linked to           used                                                       development
                                                                                                                                                                                                                                   development          purchasing                                                                     plan is regularly
                                                                                                                                                                                                                                                        performance                                                                    evaluated

                                      14.10 Employee integrity     Extent to which employee integrity is supervised.                                                                                                               No specific          Employees are       Employee                                                   Employees                               The part of the
                                                                                                                                                                                                                                   supervision          informed of the     integrity is                                               receive feedback                        organisation
                                                                                                                                                                                                                                                        integrity           evaluated                                                  on the extent to                        takes effective
                                                                                                                                                                                                                                                        principles they                                                                which they are                          measures to
                                                                                                                                                                                                                                                        must uphold                                                                    upholding the                           ensure that
                                                                                                                                                                                                                                                                                                                                       integrity                               employees
                                                                                                                                                                                                                                                                                                                                       principles                              uphold integrity
Summary   The process       There is little or   Up to date job      As 2, the           As 3, there is a    As 4, there is a   As 5, purchasing    As 6, personal       As 7, the part of   As 8, the part of   As 9, there is
          does not apply    no HRM support       profiles for        appraisal and       continuous and      specific HRM       is formally         development          the organisation    the organisation    evidence that multi-
          to the            for the              procurement         remuneration        formal process      policy for         included in the     plans are used       actively pursues    actively pursues    disciplinary appraisal
          organisation or   procurement          (incl. job          system is related   of appraisal of     purchasing,        annual (as a        (including           a career policy     a career policy     cycles take place.
          part of the       process. There       descriptions and    to purchasing       individual skills   including          rule)               individual           that transcends     that transcends     Team targets are set
          organisation.     is no focus on       competences)        performance.        (required versus    objectives,        management          training and         the boundaries      the boundaries      and regularly
                            developing           are available.      There is an         available) and      succession         development         career plans)        of roles (within    of the              evaluated on the
                            competences.         Profiles are used   explicit            recruitment         planning,          review of all the   based on the         the part of the     organisation.       basis of a formal
                                                 for recruitment     relationship        and/or training     training,          different           purchasing           organisation).      Each part of the    process.
                                                 and selection.      between the         on this basis.      recruitment and    departments.        profile, disparity                       organisation
                                                 There is            achievement of      There is            selection. There                       analysis and                             implements
                                                 evidence that       purchasing          evidence that job   is an                                  staff appraisals.                        effective
                                                 personal            targets and the     profiles are used   understanding of                       The purchasing                           measures to
                                                 assessment          outcomes of staff   and HRM is          the                                    manager and the                          ensure that
                                                 takes place and     appraisals (for     involved in this    competences                            individual                               employees
                                                 individual          anyone involved     process.            and specialised                        evaluate the                             uphold integrity
                                                 targets are set     in the              Evaluation of the   knowledge                              personal                                 principles.
                                                 for each            purchasing          integrity of        available within                       development                              Information
                                                 purchaser. Little   process).           employees takes     the                                    plan regularly.                          systems for
                                                 evidence of         Appraisal and       place.              organisation's                         Employees                                knowledge
                                                 personal            remuneration                            workforce that                         receive feedback                         management are
                                                 competence          plans are partly                        could be                               on the extent to                         used across the
                                                 development.        related to the                          employed in                            which they are                           individual parts
                                                 There is no         performance of                          purchasing                             upholding the                            of the
                                                 specific            the multi-                              teams.                                 integrity                                organisation.
                                                 supervision of      disciplinary                                                                   principles.
                                                 employees'          team.
                                                 integrity.          Employees are
                                                                     informed of the
                                                                     principles they
                                                                     must uphold.

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