A procurement strategy is a statement of intent, a manifesto for procurement within an organisation and how the organisation will meet or exceed external obligations. A good strategy defines how procurement links to and contributes the wider corporate objectives for an organisation. A strategy should be accompanied by an action plan (preferably SMART) which is the detail, the roadmap delivering the strategy and achieving improvement for procurement as a function.
The procurement policy documentation is about how to actually conduct day to day procurement activity in compliance with financial regulations and external factors (e.g. EU procurement regulations). Therefore guidelines, controls and evaluation methodologies are elements that would sit more appropriately within an organisation’s procurement policy documentation.
TPP support our clients in developing or updating their procurement strategy and policy documents through:
- Understanding the current position for procurement through interviews and review of existing procurement documentation, including strategy, policy, financial regulations and other relevant documents
- Discussing and agreeing strategic procurement targets that are realistic and achievable
- Advising the client of the key changes required within procurement to achieve identified targets and to ensure guidelines/controls enable value for money
- Creating a strategy document to provide direction to achieve the changes
- Supporting the strategy with a SMART procurement plan, with a comprehensive timeline and breakdown of activities required
- Create a procurement policy implementing any new controls and guidelines to enable value for money and minimise supply chain risk
Typical outputs of TPP’s support include:
- A new and comprehensive corporate procurement strategy
- A bespoke procurement action plan identifying the tasks required to deliver the necessary changes
- A new procurement policy, documenting appropriate procurement process, controls and guidelines for end-users
- Feedback and any recommended changes for the client’s financial regulations or standing orders necessary to ensure legal compliance and achieve procurement improvement
These projects are consultative and typically require a number of interviews with senior staff to understand, discuss and agree the strategic context which procurement must operate within and contribute towards. Interviews with key operational staff responsible for day-to-day procurement activity are also necessary to understand current processes and controls.