Ask4Supplier - Rate Your Self

Is your procurement
function clerical or strategic?

It’s important to keep evaluating the procurement function’s effectiveness periodically. Organisations understand the importance of procurement department and its advisable to do self-evaluation regularly to keep an eye on effectiveness of procurement function.

On the bases of below questions rate your procurement function. Following is the score for each option:

No/Poor: 2
Rarely/Some/Ad-Hoc : 5
Often/Most/Good : 7
Always/Everyone/Great/Regularly: 10

Do you plan your buying activities? *

NO:	RARELY:	OFTEN:	ALWAYS:
Don't know where to start. We buy as and when we need.	We buy tactically and don't have the time or resources to do so.	Each department owns a budget and has (some kind) of plan for the next 12 months (or beyond).	We have a comprehensive plan that forms part of a wider strategy to support he business' objectives.

Do you review or analyse your spend? *

NO:	RARELY:	OFTEN:	ALWAYS:
Finance are unable to provide the information required to do this.	There is no regular activity, but I sometimes review my top suppliers on an ad-hoc basis (e.g. at contract renewal).	We have a grasp of our top suppliers and spend categories and run reporting as and when needed.	We run regular spend reports that are interrogated by the finance or procurement team to identify opportunities and risks.

Do you use an internal policy or guidelines to buy goods and services?*

NO:	RARELY:	OFTEN:	ALWAYS:
We don't buy enough stuff to warrant a policy or guidelines.	Employees are directed to buy at the best value wherever possible.	We have some rules to abide by and employees are encouraged to use these.	We have a Policy, signed off by our Senior team which has been rolled out and training provided.

Do you use a process for buying goods and services?*

NO:	RARELY:	OFTEN:	ALWAYS:
We buy what we need when we need it. We try to get best value for the right solution.	We obtain competitive quotes for services and get the best deal for our needs.	Approval is required from a budget owner. We typically obtain three quotes before making decisions.	We have a Procurement process flow to ensure we purchase what we need, at the right price and with approved suppliers.

Do you use skilled resource to deliver high value and high risk buying projects?*

NO:	RARELY:	OFTEN:	ALWAYS:
We have nobody in a specific buying role. It is done by our finance team or operational lead.	Budget owners and/or finance usually take the lead.	We have approval levels set and managers own responsibility to sign off. Important projects are led by Project Managers/Operational Leads with Executive Sponsorship.	We have a Dedicated Procurement Expert (or team) working with finance and the operational leads/owners.

Do the people in your business understand how they can improve profitability?*

NO:	RARELY:	OFTEN:	ALWAYS:
Their focus is on completing their own activities.	On a project-by project basis, people are targeted to maximise profitability or reduce costs.	Everyone has an objective to identify opportunities to save money or improve efficiencies.	Everyone has objectives to improve profit and understands the value of procurement's contribution.

How do you rate your supplier relationship management?*

NO:	RARELY:	OFTEN:	ALWAYS:
We contact our suppliers when we have a new requirement or a problem with an existing product/service.	We have good intentions, but not the time. Some of our suppliers are hard to get hold of or arrange a meeting.	We meet regularly with the majority of key suppliers, review contracts to ensure best practice and mitigate risks.	We have great relationships with suppliers, benefiting from their proactive support for innovation and adding value to our business.

Do you check or review supplier contracts?*

NO:	RARELY:	OFTEN:	ALWAYS:
We don't have contracts stored centrally, some are missing. Typically we rely on suppliers to tell us if they are coming to an end.	We always review before contract signature, if there is an issue and if we renew.	Our most significant contracts are owned by stakeholders. They review contracts periodically as part of the purchasing process.	We continually review our supplier contracts to ensure they are achieving best value as well as mitigating risks. We have Procurement/ contract management in place.