“You get what you measure” may not be totally accurate but clearly metrics drive decisions and behaviors in every organization. In making the transformation from Sourcing to Category Management, it is critical that we acknowledge the very important role that metrics play. The change in metrics is critical in changing the way Procurement/Supply Chain operate AND they are even more critical in how we operate with our stakeholders and how our stakeholders operate with us. The transition to a value creating organization can only happen with a change in metrics. Join us for a discussion on ths critical domain from our Maturity Model and here are a few of the elements we will cover:
Tuesday – October 24, 2017
10 AM – 11 AM CST (No Cost)
- Next generation metrics are in place to capture customer & supplier satisfaction, profitability, quality, and value.
- Metrics are designed around 2ndorder effects and Procurement is measured on metrics like reduction in working capital, margin enhancement, market share improvement etc.
- Procurement adopts a “value at risk” approach to risk metrics
- Procurement is benchmarking against best practice process leaders in other unrelated industries.
- Procurement may estimate pro-forma metrics for its competition
- Procurement is globally renowned for achieving outsized metric results
In addition, we will also cover Innovation. Not only will we discuss how procurement must innovate itself but also how Procurement must drive innovation across the entire enterprise – yes, the entire enterprise! This is a new role that Procurement must embrace to make the transformation to Category Management complete. Here are some of the elements from our Maturity Model that will be discussed:
- Innovation contribution is a Procurement evaluation metric
- Company accepts solutions that increase cost but generate offsetting increments of value
- New patents are issued jointly to supplier / company partnerships
- Focus on transformational vs. incremental development models
- Procurement routinely identifies, introduces & evaluates new technology & business delivery concepts stemming from unrelated industries, cultures, & geographies
These are just a few of the highlights…..