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Needs analysis ensures an accurate understanding of the goods / services being procured. Areas to consider include objectives, background, scope, constraints, deliverables, timing, approvals, policy and legislative requirements, evaluation criteria and methodology and contract management including KPIs.
A great example is Meritor , who brought a unique approach to supplier collaboration and new product introductions to life, delivering more products at higher profit to support a board level initiative and multiply their stock price. Many other organizations have leveraged this strategy, but almost all can do so better to drive greater value.
Identifying Value , is where procurement teams leverage spend data and spend analysis to understand trends in spend and identify opportunities and develop categorymanagement strategies. . There are, in fact different phases of procurement value creation that tie into the Source-to-Pay process: .
The evaluation can be simple, such as tenders which are price only, or complex which includes technical criteria, pricing and sometimes an interview or demonstration. The pricing evaluation follows the completion of all technical evaluation stages and is usually the easiest to evaluate. Fleet and Logistics CategoryManager.
Rated Criteria The technical evaluation criteria needs to align clearly with the scope / performance requirements of the good / service being procured. Meetings should be multi-lateral to include representatives from operations, supply chain and senior management. Fleet and Logistics CategoryManager.
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