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.
Constructing a world-class procurement strategy within an established framework is a transformation challenge.
1
is to analyze the status of the procurement in your organization. This is accomplished with the 15M Maturity Assessment.
2
is unrolling the blueprints and outlining plans for a strategic framework overhaul. This framework drives transformation, aligning sourcing, managing change, and ensuring agile implementation.
Developed by Prof. Dr. Gerhard Hess in 2008, the 15M methodology blends practice and research to create agile, sustainable procurement strategies. Refined over 15+ years and 20+ multinational projects, it covers category management, supplier strategies, risk, maturity, and sustainability. A maturity assessment is key to procurement excellence.
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.
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.
SP1
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.
SP2
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.
SP3
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.
SP4
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.
SP5
Finally, our Procurement Performance Management process keeps our supply strategy on track by managing market changes, monitoring implementation, and ensuring success. Using Balanced Scorecard logic, we set targets, track progress, and adjust proactively. By staying focused and identifying weaknesses early, we build a strong, efficient procurement system—just like a well-constructed house that stands the test of time.
SP1
Procurement Framework Strategy (SP1) lays the foundation by setting clear value contribution targets and policies, ensuring strategic alignment with business needs.
SP2
Category Strategies (SP2) focus on understanding and structuring procurement categories, paving the way for well-informed, strategic sourcing decisions.
SP3
Supplier Strategies (SP3) bring structure to supplier relationships by evaluating their performance, onboarding new partners, and classifying them strategically.
SP4
Process/Digital Strategies (SP4) emphasize on streamlining workflows and leveraging digital tools to make procurement operations more agile and data-driven.
SP5
Performance Management (SP5) keeps everything in check by continuously assessing procurement efficiency and organizational structure, ensuring long-term success and adaptability.
A well-designed procurement strategy not only supports cost efficiency and operational excellence but also aligns with an organization’s mission. Here’s how you can build a winning procurement strategy.
As global environmental and social challenges intensify, sustainable procurement has evolved from a niche concern to a strategic imperative.
Generative AI is revolutionizing procurement by automating tasks such as performance evaluations, risk assessments, and category research. This transformation enables procurement professionals to focus more on strategic decision-making, enhancing efficiency and agility within organizations. Embracing AI-driven innovation is becoming essential for staying competitive in the evolving procurement landscape.
A well-designed procurement strategy not only supports cost efficiency and operational excellence but also aligns with an organization’s mission. Here’s how you can build a winning procurement strategy.
