The Strategy Blueprint
The Strategy Blueprint is a series, guiding you through the steps to developing a strong, holistic procurement strategy. Dive into the 15 modules supporting Sourcing Champion’s procurement strategy and uncover insights from our procurement experts.
00.Introduction
Strategic Transformation
Constructing a world-class procurement strategy within an established framework is a transformation challenge. The very first step is to analyze the status of the procurement in your organization. This is accomplished with the 15M Maturity Assessment. Then, we unroll the original blueprints and sketch the development plans for strategic framework upheaval. The strategic framework will guide your strategic transformation, including change management, aligning all aspects of strategic sourcing, whilst managing the step-by-step implementation process in an agile way.
What is Sourcing Champion’s Strategy? – 15M Methodology
The 15 M methodology was developed in 2008 by Prof. Dr. Gerhard Hess, a systematic optimization expert in strategic purchasing. The essence of his approach is the integration of practice and research with a focus on a holistic, sustainable, and agile approach to procurement and supplier strategies. For more than 15 years, Dr Hess has elaborated the 15M architecture through his experience in developing over 20 procurement strategies in multinational companies. This methodology includes developing a comprehensive procurement strategy with category and supplier strategies, purchasing controlling, risk, maturity, and sustainability management, among other factors. Dr. Hess enjoys assisting companies with his strategic purchasing, the 15M architecture forms the basis of his approach to supply strategy.
A Modular Framework
The 15M strategic framework reflects the deliberate and detailed way in which an engineer would design a world-class circular house. There are no structural frailties to uncover and certainly no underperforming features. Easier said than done of course- especially if the engineer were tasked with a renovation as opposed to a new construction. For exactly this purpose, the 15M architecture is modular and comprehensive. Each module of the existing procurement strategy is exhaustively and exclusively inspected through the 15M Maturity Assessment. The results of no less than fifteen of such ”inspections” bears quantitative and qualitative intelligence for transformation and improvement. It is then possible to approach a ‘’renovation” plan with a clear strategic framework and structure.
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The 15M structure
If you were to inspect the blueprint of this procurement strategy, you’d find fifteen modules forming the structure. These modules are organized into five strategic partitions, each serving a unique purpose in the procurement process.
At the core of our procurement strategy lies a sturdy and reliable foundation, the Procurement Framework Strategy. Like the foundation of a house, it ensures the strength and stability of the entire structure by linking our supply and corporate strategies and aligning market and supplier strategies. This coordinated approach creates a seamless flow that supports our entire supply management process, giving us the foundation, we need to succeed.
Just like a well-built house, our procurement management system relies on a series of building blocks that work together to create a strong and efficient structure. The Category Strategies are the building blocks that allow us to bring our procurement market strategy to life. By laying a strategic foundation for our material, product, and commodity groups, we create a structure that’s stable, efficient, and effective.
Our Supplier Strategies serve as the keys that unlock successful partnerships with our suppliers. These strategies provide a roadmap for development and cooperation with each supplier, guiding us like architectural plans during the construction of a house. The specifics of the strategy may be kept confidential, but the results are always on full display.
Just like the various systems that keep a house running smoothly, our Process Strategies cover all the bases, including critical processes like development with early supplier involvement. By using the right strategies for each process, we keep our supply management system running like clockwork, ensuring everything runs like a well-oiled machine.
Finally, our Procurement Performance Management process keeps our supply strategy on track, exercising essential control processes to decide on things like market strategy changes and monitoring the implementation and success of our supply strategy. By using Balanced Scorecard logic, we can specify, monitor, and control our supply strategy via value contribution targets, driver variables, and projects, building our supply strategy step by step and managing adjustments proactively. To avoid getting sidetracked by day-to-day business, we must keep a close eye on the validity of our strategy, recognize weaknesses in implementation early, and systematically control the development of our supply strategy system. Together, these interdependent modules create a procurement management system that’s strong, efficient, and effective, just like a well-built house that stands the test of time.
