P
A PEST/PESTLE/STEEPLE analysis is a construct that helps analyze the external environment and influences that impact the supply base. It provides a concise way of market investigation and analysis to support procurement, supplier and category strategies.
Learn morePorter's Five Forces Model
Porter’s Five Forces is a model for analyzing its proposed five competitive forces prevalent in all industries. It simplifies the process of recognizing industry weaknesses and strengths to gain competitive advantage from them. In a procurement context, it can be used to determine a procurement category’s forces. Therefore, it can be a vital tool in the formation of a category strategy, sourcing plans, negotiation plans and supplier management strategy.
Specialism:
Category Management
Risk Management
Supplier Management
Learn morePre-qualification Questionnaire (PQQ)
A Pre-qualification Questionnaire (PQQ) is a document organizations use to pre-screen potential suppliers or contractors before inviting them to participate in a tender process. The PQQ aims to assess the supplier's suitability and capability to meet the organization's requirements and determine whether they should be invited to participate in the tender process.
The PQQ typically includes a range of questions that evaluate the supplier's experience, qualifications, financial stability, health and safety record, and other factors relevant to the project or procurement. The questions may be scored, and the suppliers are typically required to provide evidence to support their responses.
The PQQ process allows organizations to streamline the tender process by ensuring that only qualified and capable suppliers are invited to participate. It also helps to reduce the risk of awarding contracts to suppliers who may not have the necessary skills or resources to deliver the project successfully.
The PQQ process is commonly used in public sector procurement, where it may be required by law or regulation. However, it is also used by private sector organizations as a best practice to ensure that they select the most suitable and capable suppliers for their projects.
Specialism:
Procurement Process
Sourcing
Supplier Management
A preferred supplier is a supplier or group of suppliers that an organization has identified as its first choice for a particular product or service. This is typically based on the supplier's ability to meet the company's needs in terms of price, quality, delivery time, and other criteria.
A preferred supplier is usually selected after an evaluation process with the status typically granted for a specified period, often with the option to renew or extend the agreement.
Having a preferred supplier can offer several benefits for the company, such as cost savings through volume discounts or negotiated pricing, improved supply chain efficiency through better communication and collaboration, and reduced risk through a more stable and reliable supplier relationship. Equally, having preferred suppliers can streamline the procurement process through automation reducing administrative burden.
It is important for the organization to continuously monitor and evaluate the performance of its preferred suppliers to ensure that they continue to meet the organization's needs and expectations.
Specialism:
Category Management
eProcurement
Procurement Management
Procurement Process
Sourcing
Supplier Management
Price benchmarking is the process of comparing the prices of products, services, or contracts with those of competitors or similar industry standards. It involves analyzing and evaluating the pricing structure, rates, and terms to determine if an organization's prices are competitive or aligned with market norms. Price benchmarking helps organizations assess their pricing strategies, identify cost-saving opportunities, negotiate better deals with suppliers, and make informed pricing decisions. It enables companies to understand how their prices compare to others in the market and make adjustments to ensure competitiveness, profitability, and value for money in their pricing structures.
Specialism:
Pricing Strategies
Pricing strategy refers to the method or approach businesses use to determine the price of their products or services. It involves analyzing factors such as production costs, competition, consumer behavior, and market trends to determine the optimal price that maximizes profits while satisfying customer demand. A business can adopt various pricing strategies, including cost-plus pricing, value-based pricing, penetration pricing, skimming pricing, and dynamic pricing. The choice of pricing strategy depends on various factors, such as the business's goals, the nature of the product or service, and the market environment.
Process benchmarking is a method that involves comparing and analyzing organizational processes against best practices from other companies or industries. It aims to identify areas of improvement and performance gaps by measuring key metrics and evaluating different approaches. Process benchmarking helps organizations understand how they can optimize their operations, enhance efficiency, and achieve superior results. By learning from successful processes implemented elsewhere, organizations can adapt and implement strategies to streamline workflows, reduce costs, increase productivity, and enhance overall performance.
Specialism:
Procurement Process
Procurement refers to the process of acquiring goods, services, or works from external sources to meet an organization's needs. It involves activities such as sourcing suppliers, negotiating contracts, managing supplier relationships, and ensuring timely and cost-effective delivery of the required resources. Procurement plays a crucial role in optimizing supply chain operations, controlling costs, mitigating risks, and ensuring the quality and availability of necessary inputs. It encompasses strategic decision-making, market analysis, supplier evaluation, and the implementation of best practices to achieve value for money and support the organization's objectives. Effective procurement practices contribute to operational efficiency, competitiveness, and overall organizational success.
Specialism:
Procurement Management
Procurement Strategy
A purchase catalog, sometimes procurement catalog, is a centralized database or system that contains detailed information about the pre-agreed products and services available for purchase within an organization. It serves as a comprehensive listing of items that can be procured, including descriptions, specifications, pricing, availability, and any associated terms and conditions. The procurement catalog is used by buyers and other stakeholders to browse, search, and select the desired items for procurement purposes. It helps streamline the purchasing process, ensures purchase are made following the correct channels and policies, standardize procurement practices, and ensure accurate and up-to-date information for efficient procurement decision-making.
Specialism:
eProcurement
Procurement Operating Model
Procurement Process
Procurement governance refers to the set of policies, procedures, and controls that govern and regulate the procurement function within an organization. It encompasses the frameworks and mechanisms put in place to ensure that procurement activities align with strategic objectives, comply with legal and regulatory requirements, and follow ethical practices.
Procurement governance includes the establishment of procurement policies and procedures, oversight and control mechanisms, risk management practices, supplier evaluation and management processes, compliance monitoring, and performance measurement. Effective procurement governance ensures transparency, accountability, and integrity throughout the procurement process, mitigates risks, fosters fair and competitive supplier relationships, and supports the achievement of organizational goals.
Specialism:
Procurement Management
Procurement Operating Model
