{"id":11332,"date":"2021-04-13T02:09:56","date_gmt":"2021-04-13T06:09:56","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/?page_id=11332"},"modified":"2021-09-28T11:15:21","modified_gmt":"2021-09-28T15:15:21","slug":"evaluating-a-procurement-solution-2","status":"publish","type":"page","link":"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/evaluating-a-procurement-solution-2\/","title":{"rendered":"Evaluating a Procurement Solution"},"content":{"rendered":"

Evaluating a Procurement Solution<\/h3><\/div><\/div><\/div>

PurchTips edition #444<\/p>\n<\/div>

How to Evaluate a Procurement Solution<\/h4><\/div><\/div><\/div>

The role of Procurement is to ensure the cost-effective, timely, risk-free, acquisition of Mission Critical Raw Material Inputs in support of Organizational Goals and Objectives. Procurement Functions are sub-sets of broader\u00a0Supply Chain Mechanisms<\/strong>\u00a0and must work in close synergy with Suppliers, Manufacturing, Logistics, Research and Development, Finance, Sales and Operations Planning, Marketing, and Customers.<\/p>\n

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The following are essential requirements for the evaluation of a Procurement Solution:<\/strong><\/p>\n

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  1. Problem Definition:<\/strong>A\u00a0clear\u00a0understanding of the Procurement Function<\/strong>\u00a0issues and shortfalls that affect Competitive Advantage and Synergies<\/em><\/u>. An effective Problem Statement is written that defines how long a set of Procurement Issues are occurring, the impact of the problems on customers and on the business. The Problem Statement also articulates the Fiscal Impact of the problems and which processes are affected by poor performance. A clear\u00a0Definition of Customer Requirements<\/em>\u00a0and\u00a0Specifications<\/em>\u00a0is formatted into a Customer Requirements Matrix (CRM) which underpins the entire initiative.<\/li>\n<\/ol>\n
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    1. Gap Determination and Change Assessment:\u00a0<\/strong>The Current State Performance Gap must be assessed for impact on Customers, Key Stakeholders, and Business Requirements. A complete\u00a0Change Assessment<\/em>\u00a0to determine the Degree of Resistance to Change must be leveraged, as this will enable the deployment of Change Management Strategies to acquire essential Buy-in and success.\u00a0 Effective\u00a0Current State Process Mapping<\/em>\u00a0to understand process steps, workflows, time elements, and decision points must be conducted.<\/li>\n<\/ol>\n
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      1. User Case Scenario and Analysis:\u00a0<\/strong>A clear understanding of how the Future State Procurement Solution is to be utilized by users must be documented. This\u00a0Voice of the User (VOU)<\/em>, is a critical element of a Change Management Strategy. Understanding how a solution is to be used also requires effective Future State Process Mapping and simplification. The User Case Scenario Analysis is vital as it enhances leverage in terms of\u00a0laser focusing Solution Requirements<\/u><\/em>\u00a0to only what is needed to cost-effectively solve performance issues. Care must be taken to\u00a0collaborate with Suppliers and Customers to determine if solutions can be integrated with their systems.<\/u><\/em><\/li>\n<\/ol>\n
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        1. Solution Selection Analysis and ROI Determination:\u00a0<\/strong>The final draft of the Proposed Procurement Solution must be filtered against robust fiscal, technical feasibility, business, and customer requirements criteria to determine Return on Investment (ROI). The solution should be score carded against other solutions while leveraging the same solution selection criteria. A Solution Selection Matrix (SSM) should be designed for this purpose. Success Measures must be selected to determine the effectiveness of the Procurement Solution once it is deployed.<\/li>\n<\/ol>\n

          NLPA Library:<\/strong>\u00a0Looking for authoritative\u00a0procurement templates, tools, webinars<\/strong><\/a>, and more?\u00a0 Stop trying to create resources\u00a0from scratch and start taking advantage\u00a0of having exactly what you need right at your fingertips in the NLPA Library<\/p>\n<\/div><\/div><\/div><\/div><\/div>

          Want A More Rewarding Procurement Career?<\/h5><\/div>
          <\/span><\/div>

          Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Nothing will change unless you take action towards becoming a world-class procurement professional. Work your way up NLPA\u2019s CPO Suite Programs, an enhanced version of our SPSM certifications and bring the most modern procurement practices into your organization and achieve your career potential.<\/p>\n

          Download our NLPA Course Catalog<\/strong> for a comprehensive list of the CPO Certification Programs and their corresponding modules per level.<\/p>\n<\/div>

          Download<\/span><\/a><\/div>