Spend Management Healthcheck

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This is a 'mini' version of our Spend Management Healthcheck. The full Healthcheck can help you understand how mature your Spend Management is, where you might have potential issues and what to put into an action plan to achieve the level of Spend management Excellence appropriate to meet your objectives. To conduct the “Mini Healthcheck” select each statement that best describes your organisation’s situation below then hit submit.

Qu1 - USE OF TECHNOLOGY

The purchasing process is primarily a manual, paper-based activity.
A full integrated,electronic procure to pay system is in place - orders and invoices are sent electronically.
The purchasing system uses best-in-class functionality (such as used by websites including Amazon and PriceRunner) to actively guide users to the best deals. The organisation benchmarks its performance against its peer group.

Qu2 - SPEND MANAGEMENT

The organisation knows what it spends and with whom.
The organisation actively maps and QCs supplier classifications to a single structure to ensure consistency. The organisation measures its spend management performance eg. through dashboards showing compliance to contract, savings delivered etc.
The organisation's spend management solution actively guides users to best value purchasing decisions eg. the same product is available from an alternative supplier at 20% less. The organisation can demonstrate sustained and positive trends in savings delivered, which compare favourably with its peer group.

Qu3 - SUPPLIER MANAGEMENT AND E-PROCUREMENT PARTICIPATION

Selecting and rationalising suppliers and monitoring of their performance is done on an adhoc basis.
All key suppliers have been enabled for e-procurement. Regular meetings are held with key suppliers to discuss requirements and performance.
All target catalogue suppliers have their products available in an optimised hosted catalogue or via punchout. Suppliers work actively and jointly with the organisation to deliver ongoing and sustainable savings through e-procurement.

Qu4 - PROCUREMENT OBJECTIVES AND TARGETS

Some targets and objectives for procurement have been defined.
Procurement Objectives, KPI’s and targets have been established for all categories of supplies and have been communicated to all management levels. All procurement activity is regularly monitored against these objectives.
Procurement objectives and targets are set in collaboration with other business areas such as sales and marketing. Joint objectives and targets are set with key suppliers and customers.

Qu5 - REPORTING ON PROCUREMENT PERFORMANCE

Procurement performance is measured and reported on an adhoc basis.
Procurement performance is reviewed on a regular basis and corrective action taken where necessary. The organisation’s procurement performance is communicated and discussed with the senior executive team.
Procurement performance trends are analysed and used to drive decision making. Procurement performance is regularly benchmarked against industry best practice.

Qu6 - INVENTORY MANAGEMENT

There is no inventory management system in place. Stock-outs occur regularly and stock-out reasons are not recorded.
There is an inventory management system in place that is at least partly automated. Stock-outs occur from time to time, reasons are recorded and there is evidence of corrective action.
There is an inventory management system in place that is fully automated. Stock-outs only occur for reasons outside the control of the organisation and records show that stock-outs have effectively been eliminated.

Qu7 - INTERNAL CUSTOMER SATISFACTION

Internal Customer feedback on “procurement” is not sought. There is no formal process.
Internal Customer feedback on “procurement” is sought regularly. The process is structured and repeatable and well publicised.
Internal Customer feedback on “procurement” is either sought or received as a matter of course. The process is structured, repeatable, well publicised, benchmarked and improving.

Qu8 - SUPPLIER COMPLAINTS

Complaints and other feedback regarding supplier performance is never gathered.
Complaints and other feedback regarding supplier performance is gathered for most cases. Appropriate corrective action is usually taken.
Complaints and other feedback regarding supplier performance is always gathered and is validated. Appropriate corrective action is always taken with clear evidence of a reducing trend in complaints.

Qu9 - ORGANISATION

There is no executive sponsorship for spend management initiatives.
There is clear executive sponsorship for spend management initiatives.
There is clear executive sponsorship for spend management initiatives, evidence that it is considered a strategic issue. Used to drive organisational change decisions.

Qu10 - PROCUREMENT SKILLS AND COMPETENCIES

Skills and competencies have NOT been defined for spend management. There is no training provided to improve spend management.
Skills and competencies have been fully defined for spend management. There is a training programme to improve spend management but training is usually a one-time thing.
Skills and competencies have been fully defined for spend management and externally validated. There is a training programme to improve spend management, skills are refreshed regularly and improvements to the training approach are continuously made. There is evidence of provision of external best practice training.

Please identify your industry sector

Aerospace
Energy or Utilities
Manufacturing
Pharmaceuticals or Life Sciences
Oil or Petrochemicals
Financial Services
FMCG or Retail
Media or Communications
Service Sector
Public Sector
Other