{"id":11343,"date":"2021-04-13T03:13:56","date_gmt":"2021-04-13T07:13:56","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/?page_id=11343"},"modified":"2021-09-28T10:36:50","modified_gmt":"2021-09-28T14:36:50","slug":"strategic-procurement-operations-transformational-model","status":"publish","type":"page","link":"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/strategic-procurement-operations-transformational-model\/","title":{"rendered":"Strategic Procurement Operations Transformational Model"},"content":{"rendered":"

NPLA\u2019s Strategic Procurement Operations Transformational Model (SPOT)<\/h3><\/div><\/div><\/div>

PurchTips edition #448<\/p>\n<\/div>

Strategic Procurement Operations Transformation Model (SPOT)<\/h4><\/div><\/div><\/div>

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The ability of procurement leaders to transform their procurement functions is critical in order to meet the demands of today\u2019s business landscape. Next Level Purchasing Association has formulated it\u2019s Strategic Procurement Operations Transformation Model (SPOT) to address today\u2019s challenges.<\/p>\n

The following are the 3 Phases for Effective Transformation:<\/strong><\/p>\n

Phase 1,\u00a0<\/strong>Prepare for Change<\/p>\n

Phase 2<\/strong>, Manage Change<\/p>\n

Phase 3<\/strong>, Reinforce Change, make it stick<\/p>\n

The following is the process for the deployment of the SPOT Model:<\/strong><\/p>\n

Step 1<\/strong>, Assess your organization\u2019s Ability to Change and create a purpose, vision, and Sense of Urgency around business and organizational process improvement\u00a0(Phase 1)<\/strong><\/p>\n

Step 2<\/strong>, Improve and manage processes, machines, materials, and technology\u00a0(Phase 2)<\/strong><\/p>\n

Step 3<\/strong>, Ensure you have the Right People or Team and that they contribute to the initiative\u00a0(Phase 2)<\/strong><\/p>\n

Step 4<\/strong>, Guarantee the realization of robust skills\u00a0(NLPA PASS)<\/strong>\u00a0and cross-training\u00a0(Phase 2)<\/strong><\/p>\n

(PASS<\/strong>\u00a0= Procurement Assessment of Skills for Success)<\/p>\n

https:\/\/www.certitrek.com\/nlpa\/purchasing-skills-assessment\/<\/a><\/p>\n

Step 5<\/strong>, Guarantee sincere respect, appreciation & effective compensation of employees\u00a0(Phase 2)<\/strong><\/p>\n

Step 6<\/strong>, Guarantee Ergonomic, Efficient Workspaces\u00a0(Phase 2)<\/strong><\/p>\n

Step 7<\/strong>, Leverage the Right, Balanced Metrics. Manage Resistance to Change\u00a0(Phase 2)<\/strong><\/p>\n

Step 8<\/strong>, Ensure accountability for making transformation stick\u00a0(Phase 3)<\/strong><\/p>\n

Step 9<\/strong>, Manage risks & unintended consequences\u00a0(Phase 3)<\/strong><\/p>\n

The benefits of robust Change and Transformation Processes are<\/strong>:<\/strong><\/p>\n

    \n
  1. They create platforms for\u00a0critical thinking, innovation, synergy<\/strong>, and effective problem solving<\/li>\n
  2. They provide inputs and data points for\u00a0supplier selection criteria<\/strong><\/li>\n
  3. They provide information for\u00a0cost reduction opportunities<\/strong><\/li>\n
  4. They create buy-in, big-picture perspective, and systems thinking<\/li>\n
  5. Enhanced Customer Satisfaction<\/li>\n
  6. They are diagnostic tools that examine cause and effect relationships of systems variables Xs and Desired Outcomes Ys.<\/li>\n
  7. They guard against systemic sub-optimization and unintended consequences<\/li>\n<\/ol>\n

    Figure 1<\/strong>,\u00a0Framework<\/strong>\u00a0for Strategic Procurement Operational Transformation Model (SPOT)<\/p>\n

    \"\"<\/p>\n

    Source<\/strong>: Next Level Purchasing, Supply Executive Leadership Course. Level 4 Certification<\/p>\n

    The SPOT Model is driven by 9 Critical Dimensions of Change and\u00a0Transformation Management\u00a0based on the latest research in the field. The key underpinnings of this innovative model are customer, market, and business requirements. Procurement Leaders create a culture of innovation and Collaboration to realize these core needs and requirements.<\/p>\n

    Section A. Figure 2<\/strong>, Strategic Procurement Operational Transformation Model (SPOT), Example<\/p>\n

    \n

    \"\"<\/p>\n

    Section B<\/strong>.<\/strong><\/p>\n<\/div>\n

    \"\"<\/p>\n

    \"\"<\/p>\n

    Source:\u00a0<\/strong>USA LEAN Engineering Training, based on the real-world situation at a US-based Manufacturing and Retailer of Soups<\/p>\n

    Section B, Directions:<\/strong><\/p>\n

      \n
    1. Draft the Problem Statement for the issues you are attempting to solve in the (Y) Business Problem section<\/li>\n
    2. Determine the magnitude of the gap between current performance and customer requirements<\/li>\n
    3. Determine the root causes of the gaps in each of the 9 Business System Leverage Dimensions<\/li>\n
    4. Develop, list, and deploy solutions to issues in the 9 Dimensions<\/li>\n
    5. List solution references in the Reference Section<\/li>\n
    6. List the target and actual implementation dates<\/li>\n<\/ol>\n

      Notes:<\/strong><\/p>\n

      Dimensions 1, 2, and 3 are underpinned by Purpose, Process, and People. The elements are fundamental in the development of a Lean Culture.<\/p>\n

      In the book, Lean Thinking, Womack and Jones strongly recommended that\u00a0executives and managers focus and reflect on 3 critical dimensions<\/strong>:<\/p>\n