Procurement Of A Functional Procurement Management Process

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Processes | Procurement | Warehouse Overview Synchronize the procurement of distribution to ensure that customer delivery requirements are met whilst achieving efficient transport operations. Typical activities included in this sub-dimension are - Contract Management and Compliance; Invoice and Payment Process; Performance Management. Assessment Questions Select the maturity level that best describes the warehouse procurement process. * LEVEL 1: Significant proportion of total warehouse and 3PL sourcing occurs outside of procurement management or influence. LEVEL 2: Procurement examines historical spend, gathers forecasted spend, and goes to market with aggregated spend and business requirements. LEVEL 3: Cross-functional procurement management process is established across procurement and the business unit organizations. LEVEL 4: Procurement strategies address a broad range of potential value levers including demand management, specification/supply base rationalization and TCO optimization. LEVEL 5: Procurement strategies address the full range of cost reduction/value management techniques, including make vs. buy, evaluating various pricing models with vendors e.g. cost plus, thorough evaluation of staffing models. Select the maturity level that best describes the contract management process. * LEVEL 1: Procurement organizations contracting have an administrative approach to contracting and rely heavily on suppliers for contract language. For many spend areas formalized contracts (i.e. real estate or lease agreements) are not in place and a large volume of purchases may be made based on Purchase Order Terms and Conditions only. LEVEL 2: Contract development is pri... ... middle of paper ... ... across the enterprise (i.e. through in-house or outsourced - dedicated freight audit/payment function). 100 % of all invoices are processed electronically. Select the maturity level that best describes governance. * LEVEL 1: No formal governance arrangements established for procurement beyond reporting line management responsibility. LEVEL 2: General governance arrangements exist, but are primarily descriptive in nature and not communicated properly or adhered to in practice. LEVEL 3: Governance framework is agreed and communicated to stakeholders. LEVEL 4: All transportation procurement contracts are governed by Procurement governance principles. LEVEL 5: A formal procurement contract management framework is established, clearly setting out roles and responsibilities. Management of major contracts actively monitored.

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