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 recording house) or outsourcing. Outsourcing refers to evidence of a a structured reasoning behind structured of results based processes that were originally performed in house, structured implementation this objective implementation on evaluation but are now carried out by an external supplier (for decision making process analysis process a more detailed definition and examples refer to process 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 necessary 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 organisation 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 potential suppliers) 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 personnel 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 and competencies other public organisations) 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 necessary) 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 agreement organisation are available. Some clear measurable 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 suppliers 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 such No evidence of Some evidence Evidence of Evaluation of 3 regulations 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 within regulations framework of the insourcing/outso urcing decision 5416ba68-ee72-44ad-b586-297af4271665.xls 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 with and approaches. partnerships to external on whether or not suitable parties is partnerships to form evaluated partnerships with suitable parties Summary The process Little or no Systematic, multi- As 2, but based As 3, but based As 4, but As 5, where As 6, and there is There is a formal As 8, but there is Multi-disciplinary does not apply to evidence of the disciplinary on internal and on current and decisions on decisions on evidence of a decision making also a formal decision making the organisation presence of a decision-making external future insourcing/outso insourcing/outso structured process for high level process that or part of the structured process around information. requirements: uring are not urcing have implementation insourcing/outso process for transcends the organisation decision making core and non- Purchasing is decisions have solely based on clearly been process. Clearly urcing and a assessing/evalua 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 internal process as an basis of the strategy of analyses that use contracts are process. The objectives with no distinctions ad hoc approach information, information organisation's current suppliers an integrated set available that outcomes for the (including between the various is employed. cost/benefit source for strategy and with and their of assessment cover all relevant internal analysis of parties (internal, Specific crisis- analyses based knowledge of the knowledge of the skills/qualities, criteria. There is aspects. Some organisation are initiatives and clients, suppliers). related decision on a limited current supplier short and long but also on those a clear picture of terms of clear. In addition, any corrective making and number of base. Evidence term strategy of of potential all costs and reference have the extent of measures). implementation assessment of compliance current suppliers suppliers. there is a been formulated. compliance with Results are may occasionally criteria and short with legislation and their Potential process for legislation and explicitly take place term goals. Little and regulations. skills/qualities suppliers have evaluating all regulations is recorded. depending on the evidence of a Careful (with the possible been identified cost elements evaluated to Communication key persons structured consideration addition of by purchasing before and after enable decisions on involved. Driven implementation has been given benchmark market research insourcing/outso to be taken about insourcing/outso by capacity process. to external studies). and supplier urcing. The insourcing/outso urcing also takes considerations. Communication partnerships. Communication assessment. reasoning behind urcing. Decision place with the Few or no only takes place takes place There is this objective making about suppliers market. measuring within the project. between the evidence of analysis has partnerships with instruments/perfo There is little departments compliance with been recorded. suitable parties is rmance evidence of within the total legislation and There is also evaluated. indicators attention to organisation. regulations and evidence of clear (before/after). legislation and formal objectives and Purchasing regulations. considered measurement expertise is not decision making take place on the employed or only takes place on basis of these. at the whether or not to Purchasing is implementation form partnerships also involved in stage. Little or no with suitable general communication external parties. commercial takes place with considerations. A stakeholders. No detailed evidence that communication attention is paid plan exists that to legislation and includes the regulations. various internal stakeholders. 5416ba68-ee72-44ad-b586-297af4271665.xls 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 market 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 formal consideration. 2.4 Purchasing flows Application of purchasing flows and risk analyses Purchasing flows Purchasing flows Purchasing flows and risk analyses and risk analysis and risk analysis and risk analysis with respect to with respect to with respect to price and volume cost process 2.5 Documentation Documentation of strategic commodity/purchase families and product requirements No documented Documentation Documentation Documented Explicit recording strategy for each on team showing process for of results that commodity/purch meetings understanding of developing a have been ase family available suppliers market strategy for each achieved and available commodity/purch 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 each commodity/purch 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. Managers thoroughly assess whether teams have the right competencies. 2.9 Procurement Identification of commodity/purchase families on the basis of procurement models (such as Kraljic Portfolio Analysis and the 80- No deliberate use Deliberate use of Benchmark models 20 rule), differentiation of commodity/purchase families is aligned to the strategy of procurement procurement studies are taken models models into account in developing a strategy for each commodity/purch 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 and 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 external (client) on development requirements requirements, logistics specifications identified performance and commodity/purch requirements plans for internally results of both ase family 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 financial Detailed plan of Including 1 planning structures and budgets. action is specific, available. Critical measurable, time- path has been bound (SMART) made explicit. and pioneering Little evidence of objectives, in line pioneering with objectives organisational and purchasing policy. 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, including relevant corrective actions requirements 5416ba68-ee72-44ad-b586-297af4271665.xls 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 which 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 the organisation attention to legislation and taken into complied with. complies with legislation and regulations account legislation and regulations. regulations is evaluated. 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 to process for teams have been strategy for each based on the structured and strategy is based including intensive studies are taken assessment of the the organisation developing a put in place to commodity/purch requirements for documented on development specific, collaboration with into account in suppliers market is or part of the strategy for each develop a ase family is also the process for plans for measurable, time- internal markets the strategy an integral part of the organisation commodity/purch strategy for each based on a commodity/purch developing a technology that bound (SMART) to draw up the development commodity/purchase ase family. No or commodity/purch thorough ase family that strategy for each have been and pioneering strategy resulting process. family strategy. very little ase family. understanding of have been commodity/purch agreed and objectives, in line in a high degree Continuous evidence of the Managers have the structure and identified and ase family based clustered within with of commitment. evaluation of the existence of been appointed development of agreed with the on both internal the organisation organisational There is regular tendering strategy commodity/purch with the role of the suppliers internal client. and external and with the and procurement feedback/agreem takes place. ase family formulating the market The focus of the (customer) suppliers market. policy. An ent on the Identification and strategies within team objectives, (documented), strategy is on the requirements, There are analysis of strategy for each pursuit of the purchasing coordinating including the long term. including a partnerships purchasing flows commodity/purch improvements in the department. No decision making specific situation Legislation and formal evaluation across and risks takes ase family with development of documented about teams, on the ground in regulations are process for organisations. place for the the most tendering strategies strategy. Supplier thoroughly the business, taken into prioritising all the Various process. important internal takes place. market research assessing the skills, account when relevant innovative forms Structured and possibly does not take competences of performance and determining requirements. of tendering have pursuit and external place or takes teams to ensure results of both tendering There is a received formal evaluation of stakeholders. place on an ad that they match current and strategies. There proactive consideration results (including Inter- hoc basis. No the aims of the potential is also analysis of approach (contractual corrective relationships and communication strategy and suppliers. purchasing flows towards the structures, actions). There is mechanisms in with direct arranging Procurement and risk on the internal market selection criteria). explicit recording the suppliers stakeholders and participation by models are also basis of costs. when of results that market are taken no deliberate use the right used for the determining have been into account in of procurement individuals. different strategy. Detailed achieved and the tendering models to draw There is commodity/purch plan of action is improved on. strategy. The up a strategy. evidence that ase families. available, which degree to which There is no team meetings includes tasks, the organisation evidence of take place. responsibilities complies with attention to Strategy and dates. The legislation and legislation and development for critical path is regulations is regulations. each made explicit. evaluated. commodity/purch Some evidence ase family is of based on communication internally defined with direct product stakeholders. requirements. Little evidence of This information pioneering is obtained on objectives. the basis of Legislation and reactive regulations are consultation with complied with. the internal customer. The focus is on the short term and consideration is given to the market approach. Purchasing flows and risks are analysed on the basis of price and volume. There is some evidence of attention to legislation and regulations. 5416ba68-ee72-44ad-b586-297af4271665.xls 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 selection process for ensuring that the supply base is up to date. and availability process based supplier selection on current based 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 supplier Regular Performance of the existing suppliers associated with current suppliers. perception of assessment assessment been extensively assessment assessment of correct number/type supplier system (quality, system, analysed on the system available strategic of suppliers is performance and delivery reliability supplemented by basis of with objective suppliers maximised on the basic evaluation of strategic simple supplier purchasing assessments (assessment of basis of differentiated of costs and suppliers) classification turnover and including capacity and commodity/purchase purchasing risk. system to classify purchasing risk communication of updating the family strategies suppliers their performance supplier's profile) according to to suppliers and performance discussion of improvement programmes 3.3 Team composition The degree of multi-disciplinary collaboration in selecting and drawing up contracts with suppliers. Multi-disciplinary involvement 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 organisation's requirements of requirements in the organisation 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 research 3.6 Supplier Differentiation of suppliers as strategic and non-strategic on the basis of (supplier) procurement models Where Differentiation not Supplier Information Supply base differentiation differentiation yet aligned to differentiation onavailable to development and takes place, (purchasing) the basis of strategic suppliers: leveraging on the suppliers are analyses that procurement status of the basis of differentiated categorised as have been models (analyses) supply base, commodity/purchase strategic and non- carried out supplier family strategies strategic performance and initiatives to bring about improvements 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 and supplier base programmes are in understanding of supply base leveraging plan management place current and development and based on process based on future leveraging supplier procurement capacities/skills assessment models of suppliers on system the basis of regular assessment 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 strategic differentiation and non-strategic using suppliers or does procurement so to a limited models extent only 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 of Documented proof Evidence that the Documented development evidence of a analyses in the of differentiated approach is purchasing differentiated form of strategy towards yielding results market research policy for purchasing suppliers and objectives are strategic and non- models available being achieved strategic suppliers. 3.1 Communication The degree to which communication takes place on the supplier base. Little evidence of Communication 0 formal about performance communication with suppliers and about the discussion of supplier base improvement with programmes stakeholders. 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 formal, 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 is As 8, but with the There is a does not apply to selection is documented simple supplier supplier supply base has clear evidence of advanced supplier a formally opportunity to differentiated strategy the organisation based on price supplier selection measurement measurement been extensively a differentiated measurement documented invest time and for each or part of the and availability. process based system is used to system and a analysed on the supply base system is also process for resources in commodity/purchase organisation. There are no on the current measure at least simple supplier basis of management used. This system supplier selection fundamental family (at least score initiatives for requirements and the quality and qualification purchasing process. This is covers both based on future supplier market 7 in element 2) for supply base capacities of the delivery reliability system that turnover and based on current products requirements. In research (starting the purposes of development and organisation. of strategic supports the purchasing risk. analyses drawn and a new product addition, regular with a good supply base leveraging, or Little or no suppliers. Little supply base Documentation is from procurement and process assessment of all understanding of development and supplier selection evidence of a evidence of development and available in the models. development strategic organisational leveraging and to is based to a differentiated formal leveraging plan. form of analyses Documented proof process. The suppliers takes requirements and maximise the limited extent on policy for communication based on of differentiated criteria have been place (e.g. the supply base). performance of the the qualitative strategic and non- on this subject procurement strategy and weighted in assessment of The planning correct number and perception of strategic with models. Little practice towards accordance with capacity and and type of suppliers. suppliers' suppliers. Ad hoc stakeholders. evidence that suppliers. the organisation's updating the implementation performance and supplier market differentiation policy, multi- supplier's profile) of purchasing a basic research takes between disciplinary with the aim of market research evaluation of place. Some suppliers takes involvement and obtaining and has been clearly costs and evidence of place on the objective keeping a clear, documented. purchasing risks. attention to basis of these measurements. up to date picture Suppliers are legislation and analyses. There There is evidence of the supplier categorised as regulations. is evidence of that the approach and his current strategic or non- compliance with is yielding results and future strategic. No legislation and and objectives are capacity and evidence of regulations. being achieved. skills (in relation attention to This information is to the current and legislation and communicated to future regulations. suppliers and requirements of programmes for the organisation). improvement are Evaluation of regularly compliance with discussed. The legislation and following regulations. information about current requirements and skills is available to all strategic suppliers and the main parties involved: status of the supply base, supplier performance and initiatives to bring about improvements. 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 and/or developed. 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 policy Clear evidence of process with the purchasing plan. This process also covers contract administration and contract management. Contract administration process for to share cost achievement of covers the definition, storage and updating of contract data in order to highlight and implement specific actions. Contract recording the calculations and goals and management refers to the optimum utilisation of the supplied products and services that are part of 1 contract criteria and cost breakdowns improvement in objectives for results each alliance in accordance with the procurement plan and the organisation's objectives. 4.3 Documentation Documentation of decision making processes with respect to selection and contracting to suppliers Documented and Documentation Clear evidence of structured showing that a an ambitious process for supplier alliance agenda for identifying, programme is improvements assessing and being developed selecting potential suppliers 4.4 Collaboration with 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 supplier joint formulation contracts are in management strategic supplier reference have in conjunction evaluation of the and mutual plans for of objectives place for most from both sides relationship has been formulated with supplier. alliance in the the future in the area strategic suppliers are involved in been integrated for current Open book policy light of the of technology, developing and into the "Product projects. Some in order to share intended objectives and managing process objectives have cost structure objectives strategies. Open alliances. Role innovation (PPI)" been defined and calculations sharing of information separation takes process jointly and there across the entire place and is a joint planning value chain purchasing process. No expertise has a evidence that separate role strategies for the within the future are geared relationship. to one another 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 communication existence of alliances with supplier structured occasionally form communication an item on the channels agenda for the management team. Communication within the organisation 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 (with As 9, formal does not apply to definition in the documented and contracts are management applicable) the of reference have costs and clear evidence supplier) training agreement and the organisation procurement structured available (if from both sides strategic supplier been formulated processes have that an ambitious programme has mutual plans for the or part of the policy stating the process for relevant) for most are involved in relationship has for current been analysed joint (with been formulated. future in the area of organisation. suppliers with identifying, strategic suppliers, developing and been integrated projects. Some jointly. Open supplier) agenda Clear evidence of technology, whom a strategic assessing and including managing into the "Product objectives have book policy to for improvements achievement of objectives and alliance should selecting documentation alliances. Role process been defined share cost has been drawn goals and strategies. be formed and/or potential showing that a separation takes innovation (PPI)" jointly and there breakdowns and up on the basis improvement in Information on future developed. There (strategic) supplier alliance place and process. There is is a joint planning calculations of benchmarking. results. products and is a formal suppliers based programme is purchasing evidence of process. No across the whole Continuous technical process for on defined being developed. expertise has a compliance with evidence that supply chain. evaluation of the developments are recording the criteria (as separate role legislation and strategies for the alliance in the openly shared. criteria and defined in 1.). within the regulations. future are geared light of the objectives for There is little relationship. to one another. intended each alliance in evidence of the Supplier objectives. accordance with existence of alliances Evaluation of the procurement structured occasionally form compliance with plan and the channels of an item on the legislation and organisation's communication agenda for the regulations takes objectives. No and the joint management place. evidence of formulation of team and joint attention to objectives. Some (with suppliers) legislation and evidence of improvement regulations. attention to programmes are legislation and still in their regulations. infancy. Communication between the various levels in the organisation is organised on a formal basis. accordance with the procurement plan and the organisation's objectives. No evidence of attention to legislation and regulations. 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 industry 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 PPI making on policy and innovation or procedures development projects 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 available) 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 supplier Evaluation of supplier processes More thorough processes assessment of suppliers' processes only if necessary 5.6 Evaluation of supplier Evaluation of supplier performance on the basis of written agreements. Supplier Formal performance performance is evaluation measured and process for compared assessing against development expectations. projects with Because it is suppliers difficult to assess innovative aspects, an advanced supplier assessment system is required to demonstrate achievement of goals and improvement in results 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 evaluation 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 supplier objectives 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 to for the supplier suppliers' product process a limited extent have been developers in the innovation (PPI) formulated, are in organisation's place development department 5.1 Communication Communication on improving product and process innovation and development with suppliers and other disciplines within the Regular Open book policy Discussions on 1 organisation meetings on sharing of direction of joint planned. Multi- knowledge and technological disciplinary and development research multi-level plans with communication suppliers 5.1 Multi-disciplinary Collaboration with other disciplines within the organisation Project objectives 2 approach defined across boundaries of different disciplines 5.1 Use of IT systems Interlinked internal/external information systems to facilitate the exchange of information and to save time and money (financial IT, Interlinked 3 general information and e-procurement systems) internal/external information systems (EDI, databases) to facilitate the exchange of information to save time and money 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 procedures 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 regular As 6, the As 7, an open As 8, interlinked As 9, an overview of does not apply to evidence of decision making good knowledge formal decision project objectives meetings have supplier's book policy with internal/external strategic suppliers is the organisation supplier on innovation or of the suppliers making process have been been planned. performance is regards to information available for each or part of the integration into development market and to determine the formulated The project measured and sharing systems (e.g. technology cluster organisation. product process projects takes selection of the best time and (including time, objectives have compared knowledge and EDI, databases) based on extensive innovation (PPI). place. There is supplier is way to involve costs and quality) been against development facilitate the supplier market No or limited use clear evidence explicitly based the supplier in that have been communicated expectations. plans is pursued. exchange of research, continuous of PPI policy and that Purchasing on the PPI. Contract translated into and defined Relevant Effective information to research into relevant procedures, in is involved in PPI requirements and terms of purchasing and (more than just corrective compliance with save time and sectors of industry which (if from the (pre- defined in reference have supplier the product measures are legislation and money. There is and discussions available) the )development process 2 and is been drawn up to objectives. functionalities) at planned and regulations a formal about the direction of role of stage of projects. in line with the a limited extent Development various levels of implemented. achieved by evaluation joint technical procurement and Some evidence policy and the (as a minimum, contracts have the organisation There is an means of process with research. suppliers is of attention to project. A more confidentiality been drawn up in and beyond the advanced analysis and suppliers for described/define legislation and thorough statements and which the boundaries of the supplier evaluation of evaluating d. No evidence of regulations. assessment of guidelines objectives for the different measurement procedures. development attention to the suppliers' relating to supplier have disciplines. If system for projects and legislation and processes only intellectual been formulated. relevant, supplier defining regulations. takes place if property rights). Checks for arrangements performance in programmes for necessary. There compliance with are made for the PPI (this is improvement in is explicit legislation and physical because the future. attention to regulations for presence of the measuring compliance with optimising suppliers' innovation is legislation and product and developers in the difficult). Clear regulations in process organisation's evidence of order to optimise innovation and development achievement of PPI. development are department. goals and embedded in the improvement in procedures. 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 communication. 6.2 Multi-disciplinary Collaboration within the organisation, for example between those who define requirements, the finance department, logistics, Internal multi- Teams with client Forces joined Best use of collaboration specific experts and purchasing, and collaboration between the purchasing department and suppliers in order to coordinate disciplinary and supplier and integrated qualities and demand with the suppliers' capacity collaboration representatives across the entire skills is made supply chain to throughout the improve entire supply planning, stock chain levels, invoicing, etc. 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 EDI) 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 of Evidence of decisions terms of suppliers are evaluation effective design reference have clearly involved process of systems and been formulated in planning processes to ensure maximum 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 process requirement based on planning process forecasts 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 times, in the logistics order times and the use of e-tools etc. process, the turnaround times, and other number of and to improve innovative forms invoices, the 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 to no evidence of automated evidence that evidence that proactive process evidence that information joined and clear evidence entire supply chain the organisation supplier (production terms of (strategic) to reduce the teams with system is in use integrated across that the best use resulting in an or part of the integration into planning and) reference have suppliers have number of steps members from that enables the the entire supply of qualities and improvement organisation. the order coding system to been formulated, been integrated in the logistics the customer's exchange of chain skills is made programme at world fulfilment optimise the e.g. to shorten in the process, to and the information (contractors/clien throughout the class level. process. There internal turnaround times requirement reduce the supplier's side across the whole ts) to improve entire supply are attempts to exchange of as part of the planning number of have been supply chain planning, stock chain by the improve the information. procurement plan process. invoices, the formed to reduce including the levels, invoicing, effective design requirement (only discussed (Automated) amount of stock, stock levels, client (e.g. using etc. of systems and planning process internally). forecasts are etc. order times and EDI). The processes and internally. There exchanged with turnaround times, evaluation the use of e-tools is a formal these suppliers. and to improve process is also and other internal Suppliers are internal documented. innovative forms. communication also involved in accounting structure in the process of procedures, etc. which internal optimising An action plan, multi-disciplinary operational implementation teams are purchasing. plan and incorporated to procedure for agree with evaluating results suppliers the are in existence. demand determined by requirements. 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 and programme’ for performance and capacity. programme no or limited critical deliveries, programme for incl. incentives supplier improvement. 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-up approach and to learn from one programme up of of improvement managers another improvement programmes only specifically initiatives trained in supplier 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 aspects (proportional) 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 quality Supplier evaluations performance performance with respect to terms of reference and contracts with suppliers. Supplier audits and process studies to evaluate for simple poor performance working system carried out on process studies system has been assessments measurement are organised evaluation current and future skills/qualities. Regular analysis of purchasing data (contract, quantitative and qualitative analyses) supplier (poor quality/late that follows up strategic carried out on all agreed with carried out at systems in use performance delivery) corrective suppliers strategic strategic suppliers' (to assess the assessment measures by the suppliers in order suppliers premises (quick costs of 'non supplier (based to fully evaluate scans) quality') on complaints current and and supplier future supplier measurement). competencies 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 assessment) 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 to strategy and purchasing objectives. being fed back to complaints to supplier and to regularly updated suppliers and suppliers supplier on the communicate the and effectively other parties basis of organisation's communicated to involved complaints strategy and the main parties procedure purchasing involved objectives 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 corrective measures have been planned Summary The process does 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 not apply to the programme for formal system for communication complaints suppliers are evidence that the control system organisation advanced quality evaluations and joint organisation or supplier simple with suppliers procedure has arranged to customer has has been agreed takes a proactive measurement training is organised part of the improvement. Ad measurement of takes place on an been drawn up to evaluate the carried out audits with strategic approach to system is in use. to enable both sides organisation. hoc initiatives for supplier ad hoc basis in communicate supplier and to and process suppliers. There supplier As part of this, to learn from one supplier performance. the case of poor internal communicate the studies with all is statistical development. the costs of ‘non another and to draw improvement There is little performance complaints to organisation's strategic evidence of the Efforts are quality’ are up a joint with no or little evidence of these (poor quality, late suppliers as strategy and suppliers in order stability/compete directed in measured and improvement structured follow results being fed deliveries): efficiently as purchasing to fully assess nce of these particular at the targets are programme up of back to suppliers reactive supplier possible. There is objectives in a the current and suppliers or most important defined and (including terms of improvement with analysis and improvement. (evidence of) a structured way. A future evidence that commodity/purch communicated to reference and follow- initiatives. For suggestions for working system number of competence of corrective ase families and the relevant up). strategic corrective action. that follows up strategic supplier these suppliers. measures have suppliers. The suppliers and the suppliers, corrective audits are also This information been planned. organisation has most important relevant aspects measures by the carried out. is documented, The complaints employees who parties involved. have been supplier (based regularly updated procedure is have been There is an checked on the on complaints and effectively evaluated. specifically official ’zero faults process side for and supplier communicated to trained for programme’ for the purposes of measurement). the main parties supplier critical deliveries. the contract involved. development. Clear evidence of (including ISO, Evaluation of achievement of AQAP, audits). suppliers takes goals and place on site (for improvement in example quick results. scans). 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 cycle programme improvement the basis of total campaign for contracts contain budget for all various cost formally on integral cost and documented 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 generate suppliers to structures campaign to clients improvements that management cost saving ideas. generate ideas encourage covers the entire with the focus on and targets for suppliers to supply chain (price) cost reduction generate cost- negotiations and (efficiency saving ideas the effect of targets) volumes 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 minimum 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 place 8.4 Selection Use of cost models, including requesting and assessing quotations. TCO procedure Purchasing uses procedures used for some cost models purchases 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 generate supplier and involved in decision organisation, but reduction product or (supplier/purchas cost saving ideas (external) client making process on little supplier service ing organisation) involvement cost improvements involvement. 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 methods Use of cost Cost analysis financing methods of funding are not models that take takes into taken into into account the account specific account specific characteristics of characteristics of funding funding arrangements in arrangements the not for profit sector 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 to improvement cost of ownership a promotion contracts contain clear evidence of use is made of that joint structured and disciplinary formal, structured the organisation programmes or (TCO) principle campaign for clauses that task setting (in various cost brainstorming formally teams and documented or part of the straightforward is used (e.g. in employees and encourage or budgets) for PPI models to select sessions take organised systematically decision making organisation purchase price supplier multi-disciplinary force suppliers to costs for all suppliers and place (between promotion work on integral process for cost management selection). The teams to generate generate ideas projects. A improve cost the current campaign to cost reduction improvements that with the focus on TCO procedure cost saving ideas and targets for maximum price structures. The supplier and the encourage with the covers the entire (price) is also formally (internal cost reduction that can be paid purchase price is purchasing suppliers to involvement of supply chain and in negotiations and used for programmes). (e.g. efficiency for a specific (and can be organisation) generate cost- suppliers and which all suppliers the effect of important There is little targets). Limited service or shown to be) at with the aim of saving ideas. (external) clients. involved and volumes. Specific products and/or reason to believe evidence of joint product is least in line with reducing costs. There are (external) clients are methods of 'special' that suppliers are brainstorming calculated on the the market. Costs There is mechanisms for taken into funding are not purchases/projec involved in sessions basis of a price are analysed evidence of cost- task setting, consideration. taken into ts (e.g. capital formulating ideas. (between the that is in line with using cost saving initiatives measurement account. purchases). The focus of supplier and the the market. models that take and results. and follow-up. communication is procuring into account the Analysis of costs, Clear evidence of internal. organisation) specific taking into achievement of with the aim of characteristics of account the goals and reducing costs. funding specific improvement in arrangements. characteristics of results. funding arrangements in the not for profit sector. 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 procurement plans agreed in multi-disciplinary sessions. 9.2 Documentation Documentation of procurement policy. The purchasing Evidence of self The procurement Evidence that objectives and evaluation policy is defined outcomes of the relationship in the general discussions are with the policy. used to update organisation's 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 and suppliers market opportunities in forms an integral the current part of the suppliers market. procurement policy and the procurement plans. 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 suppliers. 9.5 Communication Communication of procurement policy to all parties involved. Purchasing Commitment Relevant parts of policy (support) for the the procurement communicated to procurement policy are internal policy is actively communicated to stakeholders/little sought and and discussed evidence of obtained from the with strategic communication lowest possible suppliers. of (parts of) the authorised body procurement (the lowest level policy to strategic that can take suppliers. these decisions) and the most important stakeholders. 9.6 Procurement plan The procurement plan incorporating the tasks, responsibilities, procurement budget and the time parameters for the plan. No procurement Procurement The procurement Some objectives The outcomes of plan is in place, plan has been plan is in the benchmark analyses or a limited plan based on a implemented as procurement are used when has been drawn detailed part of a formal policy also focus drawing up the up. It only understanding of budgeting and on the internal procurement policy describes which the suppliers evaluation efficiency of the and procurement activities need to market and the process. purchasing plans. The be carried out by supplier base. 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 incorporated. 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 management. 9.8 Strategy The procurement policy is in line with the general organisational strategy and planning with respect to facilities, financial policy, Purchasing The procurement The procurement Objectives are based technical aspects, environmental and quality policies. In addition to incorporating ethical codes, the procurement policy also objectives are policy is based policy is part of on benchmarking. addresses issues of social responsibility (such as improving employment opportunities locally or promoting sustainable clearly in line on the general the general purchasing). The procurement policy may also state that a 'truck system' applies to specific commodity/purchase families. with the policy. policy. organisation's Purchasing objectives. objectives are in line with the organisation's and other objectives. Purchasing is involved in drafting budgets. Summary The process No procurement The procurement 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 of does not apply to plan is in place, plan has been purchasing procurement plan good that (self) procurement relevant parts of evaluation of the benchmark analyses the organisation or a limited plan based on a objectives are is implemented communication evaluations are policy has been the procurement risk in the are used when or part of the has been drawn detailed clearly in line as part of a of procurement used to formulate translated into policy are suppliers market drawing up the organisation. up, in which understanding of with the formal budgeting policy matters to procurement approved communicated to forms an integral procurement policy case, it has been the suppliers organisation's and evaluation stakeholders objectives and to procurement and discussed part of the and procurement drawn up market and the objectives. The process. The internally. Little set priorities for plans by multi- with strategic procurement plans. All objectives exclusively by supplier base. purchasing procurement evidence of undertaking disciplinary suppliers. There policy and the aimed at improving purchasing. The There is a good objectives and policy is based communication improvement sessions. is evidence that procurement efficiency are taken procurement plan understanding of the relationship on the general of matters initiatives. Some Commitment the outcomes of plans. into account in this only describes relationships and with the policy. relating to the objectives in the (support) for the the discussions process. These which activities opportunities in organisation's Purchasing procurement procurement procurement are used to objectives relate need to be the current objectives are objectives are in policy to strategic policy also focus policy is actively update the partly to purchasing carried out by the suppliers market. explicitly stated line with the suppliers. on the internal sought and procurement and process different There is a in formal reports. organisation's efficiency of the obtained from the policy (in the optimisation. The purchasing system for Models such as and other purchasing lowest possible future). procurement plan is organisations. distinguishing BSC, INK or objectives. process in authorised body part of line Key policy between EFQM are used Objectives are addition to (the lowest level organisation policies, principles are suppliers (using for this purpose. actively getting the most that can take not just purchasing. used. There is no procurement compared from supplier these decisions) system for models) and to against the actual alliances. A and the most distinguishing indicate the situation and if system for important between approach necessary are differentiating stakeholders. suppliers (using required for adjusted by between The procurement procurement different management. suppliers is in policy forms part models) or to suppliers. Purchasing is use (using of and is indicate the involved in procurement recorded in the approach drafting budgets. models) and for general policy. required for indicating the different approach suppliers. required for different suppliers. 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 of collaboration teams have been teams have been influence partnership with between roles purchasing and team members put in place at put in place. A developments the client and the within the expenditure flows the level of the steering group with contracted supplier to organisation, and is also part of the provides suppliers achieve between different informed at the organisation guidance to the improvements/in organisations appropriate time teams (group- novations and between the in order to wide) various contribute to the purchasing supplier selection organisations of and contracting parts of process. organisations. 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 purchasing activities 10. Management level Position of purchasing management within the organisation and level of the organisation at which the responsibility for purchases Purchasing is Some evidence Purchasing is 5 is held. represented at of coordination of represented on strategic level for the purchasing policy-defining which a member role across parts committees at of the of the group level management organisation team (MT) holds ultimate responsibility. 10. Optimisation of Optimisation of the purchasing organisation by distributing purchasing tasks, taking into account the purchasing portfolio and Purchasing tasks Purchasing tasks Distribution of Role separation 6 purchasing characteristics of the organisation. are distributed to are distributed in purchasing tasks between strategic, a (very) limited a reasonably fully coordinated tactical and extent, coordinated way operational distribution is purchasing, and uncoordinated. between the various 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 in configuration has been selected on the strength of structural variables, e.g. centralised, decentralised or coordinated. organisation is in line with the line with the organisation's policy, policy, objectives objectives and and structure of structure the organisation 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 to communicated to interested parties 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 with and further other (parts of) refining of the 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 to coordination expertise is fulfils both a evidence of of multi- purchasing is necessary multi- disciplinary disciplinary purchasing the organisation and/or involved in all tactical and a coordination of disciplinary implemented as disciplinary teams also teams work in organisation is in line or part of the partnership purchasing and strategic role. the purchasing teams have been a separate set of teams have been influence partnership with with the policy, organisation. between the expenditure flows There is clarity role across parts put in place at activities in put in place. A developments the client and the objectives and purchasing roles and is also about roles and of the the level of the addition to steering group with contracted supplier to structure of the within the informed at the the organisation. part of the tactical and provides suppliers. achieve organisation. The organisation and appropriate time responsibilities of Purchasing tasks organisation to operational guidance to the Identification of improvements/in purchasing between other in order to team members. are distributed in support supplier purchasing teams group- possible areas novations. organisation roles. The contribute to the Purchasing is a reasonably evaluation, activities. Typical wide, coordinates for improvement maximises strategic, purchasing role supplier selection represented at coordinated way selection and strategic decision making and further tactical and is primarily and contracting strategic level for and are integration in purchasing between the refining of the operational executive and process. Tactical which a member communicated to processes for activities are teams, evaluates partnership purchasing (role administrative. purchasing has of the stakeholders. product and carried out the position and policy. separation takes Purchasing tasks been management Some multi- process formally and the level of the place within this). are distributed to implemented as team (MT) holds disciplinary development. within a purchasing role Role separation also a limited extent a separate group ultimate teams to support The current structure, for within the takes place between only to achieve of activities in responsibility. purchasing policy on example carrying organisation and the different leverage, addition to Some of the processes. partnerships is out fundamental takes decisions disciplines. distribution is operational purchasing evaluated. 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, objectives developing a Purchasing is There is no strategic and structure of strategy for each represented on policy for purchasing the organisation. commodity/purch policy-defining partnership activities. Some Formal policy ase family. The committees at arrangements. thought has been covering the distribution of group level. given to possible approach to purchasing tasks partnerships with partnerships with to achieve other other (parts of) leverage is fully organisations (or organisations coordinated. parts of with different organisations) basic principles. and how this could work out in practice. Support process 3 Globalisation 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 measure efficiency of indicators in integrated set of evaluate the performance the performance purchasing place for the organisational performance of should be of suppliers in processes (for entire lifecycle of performance suppliers: e.g. measured. the operational optimising the purchased indicators quality, price and improvement purchasing product. changes, process processes) timeliness of deliveries and availability of support) and purchasing performance 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 organisation's objectives 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 to price, quality, indicators are isolate and analyse measured and performance. measure the delivery service regularly (at least the most important compared maturity of and the costs of once a quarter) product cost drivers against targets purchasing non-performance and formally in the entire supply by the supplier. evaluated at chain together with The performance management suppliers and measures are level in formal customers. used for future management purchasing plans reports (using (sourcing), new tools such as development Business plans and Balanced continuous Scorecard, improvement EFQM or INK). activities, in accordance with the regulations 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 recorded. 12.5 Communication Providing feedback on performance to stakeholders, including suppliers. Feedback on Performance Formal actual indicators are evaluation at performance communicated to management relative to agreed and understood level via formal performance is by the whole management given to direct organisation. reports. stakeholders. 12.6 Improvement plan Extent to which improvement plans are developed on the basis of measured performance values. Measured values Improvement are used to plans based on prepare general evaluations 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 commodity/purch ase families is in use. Summary The process No supplier As 1, and there is As 2, there are As 3, the As 4, and there is As 5, and there As 6, and self- As 7, there are As 8, and the Measured values are does not apply to performance written evidence formal criteria measured values a wide-ranging are indicators in evaluations are qualitative and purchasing used to identify, the organisation indicators or that the and a system in are used to integrated set of place for organised on a quantitative performance isolate and analyse or part of the basic set of purchasing place to identify prepare general performance measuring the regular basis to (TCO) indicators form the most important organisation. indicators (to performance the suppliers plans for indicators in efficiency of measure the performance part of an product cost drivers evaluate the indicators are in whose improvement place to measure purchasing maturity of indicators in integrated set of in the entire supply performance of accordance with performance together with the performance processes (for purchasing. place for the organisational chain together with suppliers: e.g. the procurement should be suppliers. of suppliers in optimising Benchmarking is entire lifecycle of performance suppliers and quality, price policy and the measured. the operational purchasing also used. the purchased indicators. The customers. changes, organisation's Feedback on and improvement processes). The product. These indicators are timeliness of objectives. actual process. performance indicators include regularly (at least deliveries and performance indicators are price, quality, once a quarter) availability of relative to agreed communicated to delivery service and formally support) and performance is and understood and the costs of evaluated at purchasing given to direct by the whole non-performance management performance stakeholders and organisation. by the supplier. level in formal indicators. The regularly The performance management supplier evaluated. measures are reports (using performance used for future tools such as indicators are purchasing plans Business measured and (sourcing), new Balanced compared development Scorecard, against targets. A plans and EFQM or INK). system for continuous grouping improvement commodity/purch activities, in ase families is in accordance with use. the regulations. The results show constant improvement. 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 purchasing information system supports systems that system supports information functionalities are system system is in use. information system forms the involvement facilitate strategic decision systems facilitate extensively used The purchasing system solely part of the of suppliers in purchasing making. supplier (e-commerce, department does used for integral the order control. Use of involvement in supplier not have a operational organisation's fulfilment data warehouses product selection, market network purchasing information process. Links that support development research, e- connection. processes. system. that transcend volume-bundling, (e.g. CAD/CAM) auctions and e- the organisation standardisation invoicing) such as extranet and and EDI are in centralisation of use. commodity/purch ase family management and decentralised ordering 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 models) 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 with measured and 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 are information indicators are used extensively used. system/information automatically technology measured and management presented by the information system 13.5 Position within the Collaboration with IS/IT management to identify IT system requirements. Evidence of formal organisation and proactive collaboration with information system (IS)/information 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 aligned policy to IS/IT policy for the entire organisation 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 to information alone purchasing information evidence that information information systems support applicable, evidence that evidence of formal the organisation system is in use. information system forms purchasing system supports systems that strategic decision information internet and proactive or part of the The purchasing system solely part of the performance the involvement facilitate making. systems facilitate functionalities are collaboration with organisation. department does used for integral indicators are of suppliers in purchasing supplier extensively used information system not have a operational organisation's automatically the order control. There is involvement in (e-commerce, (IS)/information network purchasing information measured and fulfilment evidence of the product supplier technology (IT) connection. processes. system. presented by the process. Links use of data development selection, market management to information that transcend warehouses for (e.g. CAD/CAM). research, e- identify purchasing system. the organisation example to Performance auctions and e- requirements and to such as extranet support the indicators are invoicing). implement strategies, and EDI are in strategic used to draw an IS/IT policy is in use. purchasing comparisons with place that is aligned (function) using other to the IS/IT policy of volume bundling, organisations the whole standardisation and to learn from organisation. and these. centralisation of commodity/purch ase family management and decentralised ordering. 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 knowledge, buyer). support for the in individual policy for systems for 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 selection 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 is development. availability of up used. actively pursued to date profiles Recruitment, that transcends for the selection and the boundaries of purchasing role training based on roles (incl. job analysis of descriptions and required skills competences) for recruitment and selection purposes 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 that Multi-disciplinary approach transcends the appraisal cycles 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 of Purchasing is Personal Organisation The part of the Individuals are an individual remuneration formal process of the competences formally included development actively pursues organisation evaluated in multi- appraisal and system is related appraisal of and specialised in the annual (as plans are used a career policy actively pursues disciplinary appraisal individual targets to purchasing individual skills knowledge a rule) based on the that transcends a career policy cycles take place. are set performance. (required versus available within management purchasing the boundaries of that transcends Team targets are set There is an available). the organisation's development profile, disparity positions (within the boundaries of and regularly explicit Assessment of workforce that review of all the analysis and staff the part of the the organisation evaluated on the relationship competence could be different appraisals organisation) basis of a formal between the employed in departments process achievement of purchasing purchasing teams targets and the outcomes of staff appraisals. Appraisal and remuneration 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 performance 14.7 Communication Communication of personal development plan by purchasing manager to the individual. The personal development plan is evaluated at regular intervals by purchasing manager and individual. 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 job Evidence that evidence of HRM personal remuneration is profiles are used personal support competence linked to 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 principles 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 to no HRM support profiles for appraisal and continuous and specific HRM is formally development the organisation the organisation evidence that multi- the organisation for the procurement remuneration formal process of policy for included in the plans are used actively pursues actively pursues disciplinary appraisal or part of the procurement (incl. job system is related appraisal of purchasing, annual (as a rule) (including a career policy a career policy cycles take place. organisation. process. There is descriptions and to purchasing individual skills including management individual that transcends that transcends Team targets are set no focus on competences) performance. (required versus objectives, development training and the boundaries of the boundaries of and regularly developing are available. There is an available) and succession review of all the career plans) roles (within the the organisation. evaluated on the competences. Profiles are used explicit recruitment planning, different based on the part of the Each part of the basis of a formal for recruitment relationship and/or training on training, departments. purchasing organisation). organisation process. and selection. between the this basis. There recruitment and profile, disparity implements There is achievement of is evidence that selection. There analysis and staff effective evidence that purchasing job profiles are is an appraisals. The measures to personal targets and the used and HRM is understanding of purchasing ensure that assessment outcomes of staff involved in this the competences manager and the employees takes place and appraisals (for process. and specialised individual uphold integrity individual targets anyone involved Evaluation of the knowledge evaluate the principles. are set for each in the purchasing integrity of available within personal Information purchaser. Little process). employees takes the organisation's development systems for evidence of Appraisal and place. workforce that plan regularly. knowledge personal remuneration could be Employees management are competence plans are partly employed in receive feedback used across the development. related to the purchasing on the extent to individual parts There is no performance of teams. which they are of the specific the multi- upholding the organisation. supervision of disciplinary team. integrity employees' Employees are principles. integrity. informed of the integrity principles they must uphold.