2. Develop Procurement Strategy 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection...

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2. Develop Procureme nt Strategy 3. Supplier Evaluatio n & Selection 5. Induction & Integrati on 1. Define Business Need 4. Negotiati on and Award of Contract

Transcript of 2. Develop Procurement Strategy 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection...

Page 1: 2. Develop Procurement Strategy 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 3. Supplier Evaluation & Selection 5. Induction & Integration.

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

1. Define Business Need

1. Define Business Need

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

Page 2: 2. Develop Procurement Strategy 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 3. Supplier Evaluation & Selection 5. Induction & Integration.

Objectives

What you need before you start

Deliverables

1. Capture the business requirements

2. Obtain full stakeholder buy in to any resulting plans and timelines

1. Key Contact Details

2. Business Requirements

1. Formal Business Requirement statement

2. Confirmed buy-in.

3. Budget Estimate

1.11.1

1.21.2

1.31.3

Identify Business Requirement

Knowledge Capture

Stakeholder Consultation

1.41.4 Risk Assessment

1.51.5 Scope andCommunication

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

Page 3: 2. Develop Procurement Strategy 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 3. Supplier Evaluation & Selection 5. Induction & Integration.

1.11.1Identify Business Requirement

Knowledge Capture

Stakeholder Consultation

Risk Assessment

1.51.5 Scope andCommunication

1.1 Identify Business Requirement1.1 Identify Business Requirement

Ensure that it is the business requirement that is captured and not the anticipated solution to Ensure that it is the business requirement that is captured and not the anticipated solution to the requirement. e.g. When the business requirement is expressed like this: “We need a the requirement. e.g. When the business requirement is expressed like this: “We need a software package to deliver presentations on the intranet”, the business requirement is to be software package to deliver presentations on the intranet”, the business requirement is to be able to deliver presentations on the intranet. The software package is a potential solution. It able to deliver presentations on the intranet. The software package is a potential solution. It may be that outsourcing the work is more cost effective than buying software, support and may be that outsourcing the work is more cost effective than buying software, support and training to use it. training to use it.

Challenge the business in terms of how requirement might best be delivered. Again, make sure Challenge the business in terms of how requirement might best be delivered. Again, make sure you and your stakeholders know the difference between the requirement and the solution. you and your stakeholders know the difference between the requirement and the solution. Once you establish the difference it is more straight forward to challenge the preconceived Once you establish the difference it is more straight forward to challenge the preconceived ideas about how best to deliver a solution. ideas about how best to deliver a solution.

Timescale – be realistic and recognise that timing may be a critical component of the business Timescale – be realistic and recognise that timing may be a critical component of the business requirement. If the solution is needed yesterday, a quick solution might be the most pragmatic requirement. If the solution is needed yesterday, a quick solution might be the most pragmatic – even if it’s not the most cost effective. But beware – the need for speed is often over – even if it’s not the most cost effective. But beware – the need for speed is often over emphasised. Ensure that all stakeholders are aware of the risk to cost and quality of solution by emphasised. Ensure that all stakeholders are aware of the risk to cost and quality of solution by prioritising speed of delivery.prioritising speed of delivery.

Make sure there is not already a solution in place. Another part of the business may have Make sure there is not already a solution in place. Another part of the business may have already dealt with this business problem.already dealt with this business problem.

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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Identify Business Requirement

Knowledge Capture

Stakeholder Consultation

Risk Assessment

Scope andCommunication

1.2 Knowledge Capture1.2 Knowledge Capture

Perform a thorough fact-find. Understand the current situation and the problem that Perform a thorough fact-find. Understand the current situation and the problem that requires a solution. Get beneath the skin of the issues and understand the wider requires a solution. Get beneath the skin of the issues and understand the wider implications. Without gathering solutions, gather a set of needs (SPIN – Solution, Problem, implications. Without gathering solutions, gather a set of needs (SPIN – Solution, Problem, Implication, Need)Implication, Need)

Identify any initial risks to the procurement process. Examples of common risks to a Identify any initial risks to the procurement process. Examples of common risks to a procurement project include: falling foul of IT security policy; failure to get budget sign off; procurement project include: falling foul of IT security policy; failure to get budget sign off; failure to meet implementation deadline; failure to get project sponsorship.failure to meet implementation deadline; failure to get project sponsorship.

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

1.21.2

1.31.3

1.41.4

1.51.5

1.11.1

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Identify Business Requirement

Knowledge Capture

Stakeholder Consultation

Risk Assessment

Scope andCommunication

1.3 Stakeholder Consultation1.3 Stakeholder Consultation

Identify all of the relevant stakeholders who have an interest in the business requirement. This Identify all of the relevant stakeholders who have an interest in the business requirement. This will include budget holders as well as others on whom a solution is dependent e.g. IT security will include budget holders as well as others on whom a solution is dependent e.g. IT security and ensure that input from all correct areas is received and ensure that input from all correct areas is received

Identify what roles and responsibilities each stakeholder has and ensure that their agreement is Identify what roles and responsibilities each stakeholder has and ensure that their agreement is obtained and that commitment is gained from all those stakeholders to drive the project obtained and that commitment is gained from all those stakeholders to drive the project towards to a successful result.towards to a successful result.

Key stakeholders to identify are: Sponsor (person who can ensure that the requirement is Key stakeholders to identify are: Sponsor (person who can ensure that the requirement is agreed, resources are made available and a solution approved), procurement team (the people agreed, resources are made available and a solution approved), procurement team (the people who will act on a day to day basis to drive the project forward) and a budget holder (the person who will act on a day to day basis to drive the project forward) and a budget holder (the person who can make appropriate funds available). who can make appropriate funds available).

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

1.31.3

1.51.5

1.11.1

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Identify Business Requirement

Knowledge Capture

Stakeholder Consultation

Risk Assessment

Scope andCommunication

1.4 Risk Assessment1.4 Risk Assessment

Assess the initial risk (high level), anything that may get in the way of a Assess the initial risk (high level), anything that may get in the way of a successful conclusion to the procurement activitysuccessful conclusion to the procurement activity

Pay particular attention to any health & safety issues associated with the Pay particular attention to any health & safety issues associated with the procurement activity or the solution. procurement activity or the solution.

Also pay particular attention to environmental or sustainability issues as Also pay particular attention to environmental or sustainability issues as well as ethical and international sourcing issueswell as ethical and international sourcing issues

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

1.41.4

1.51.5

1.11.1

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Identify Business Requirement

Knowledge Capture

Stakeholder Consultation

Risk Assessment

Scope andCommunication

1.5 Scope and Communication1.5 Scope and Communication

Confirm the scope of the procurement exercise. In which businesses/regions Confirm the scope of the procurement exercise. In which businesses/regions will it cover. What is the budget likely to be and what impact if any, will that will it cover. What is the budget likely to be and what impact if any, will that have on scope. What are the quality constraints?have on scope. What are the quality constraints?

Communicate and clarify the business requirement across all stakeholders Communicate and clarify the business requirement across all stakeholders

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

1.51.5

1.11.1

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Objectives

What you need before you start

Deliverables

1. Agree Procurement Approach and timescales

2. Evaluate current environment and decide on the procurement process

1. Formal Business requirement statement

2. Resources identified and committed

3. Buy-in obtained from all stakeholders

1. Procurement Plan

2. Estimated budget

3. Sign off on estimated budget

2.12.1

2.22.2

2.32.3

Team KickOff

Market Research

DefineSuccess

2.42.4 AgreeStrategy

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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Team KickOff

Market Research

DefineSuccess

AgreeStrategy

2.1 Team Kick Off2.1 Team Kick Off

This is an opportunity to bring the team together to gain This is an opportunity to bring the team together to gain mutual understanding & buy-in to project objectives, roles, mutual understanding & buy-in to project objectives, roles, responsibilities & actions. responsibilities & actions.

Bear in mind that the scale of this event depends on the Bear in mind that the scale of this event depends on the scale of the procurement activity. It could range from as scale of the procurement activity. It could range from as trivial as a quick chat over a coffee to an off-site trivial as a quick chat over a coffee to an off-site conference.conference.

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

2.12.1

2.22.2

2.32.3

2.42.4

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Team KickOff

Market Research

DefineSuccess

AgreeStrategy

2.2 Market Research2.2 Market Research

Gather as much information as possible in order to establish a range of Gather as much information as possible in order to establish a range of approaches, products and services that will meet the business need. approaches, products and services that will meet the business need. Identify what traditional and innovative solutions may be available. Identify what traditional and innovative solutions may be available.

Use as many sources of information as you have access to including the Use as many sources of information as you have access to including the internet and the existing knowledge from stakeholdersinternet and the existing knowledge from stakeholders

2.12.1

2.22.2

2.32.3

2.42.4

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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Team KickOff

Market Research

DefineSuccess

AgreeStrategy

2.3 Define Success2.3 Define Success

Define the criteria by which a successful solution will be Define the criteria by which a successful solution will be judged.judged.

Define the minimum quality criteria, the cost range and the Define the minimum quality criteria, the cost range and the deadline for delivery.deadline for delivery.

2.12.1

2.22.2

2.32.3

2.42.4

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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Team KickOff

Market Research

DefineSuccess

AgreeStrategy

2.4 Agree Strategy2.4 Agree Strategy

Compile market research and make recommendations as the Compile market research and make recommendations as the proposed strategy. e.g. outsourced solution vs. in-house proposed strategy. e.g. outsourced solution vs. in-house developed and managed.developed and managed.

Include within the strategy, some thinking about the purchase to Include within the strategy, some thinking about the purchase to pay processes to identify potential problems or opportunities for pay processes to identify potential problems or opportunities for efficienciesefficiencies

Collaborate with stakeholders to ensure that they all have input Collaborate with stakeholders to ensure that they all have input to the procurement approach and strategy.to the procurement approach and strategy.

Obtain formal agreement to the strategy before moving the Obtain formal agreement to the strategy before moving the process forwardprocess forward

2.12.1

2.22.2

2.42.4

2.42.4

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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3.13.1

3.23.2

3.33.3

3.43.4

Develop Pre-qualStrategy

Score, Filter& Notify

Develop &Launch Tender

Assess & Filter

Objectives

What you need before you start

Deliverables

1. To select the right suppliers and value proposition to be taken forward to final negotiation.

1. Procurement Strategy

2. Market Research

1. Shortlist of suppliers

2. An agreed procurement approach with shortlisted suppliers

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

Page 14: 2. Develop Procurement Strategy 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 3. Supplier Evaluation & Selection 5. Induction & Integration.

Develop Pre-qualStrategy

Score, Filter& Notify

Develop &Launch Tender

Assess & Filter

3.1 Develop Pre-qualification Strategy3.1 Develop Pre-qualification Strategy

It is important that the number of suppliers taken forward to negotiation is a small as possible therefore it is It is important that the number of suppliers taken forward to negotiation is a small as possible therefore it is important to develop some strict criteria that must be met in order to eliminate suppliers which would ultimately important to develop some strict criteria that must be met in order to eliminate suppliers which would ultimately not succeed.not succeed.

Agree and document the key criteria by which the supplier will be selected and develop a qualification Agree and document the key criteria by which the supplier will be selected and develop a qualification questionnaire to be completed by responding suppliers.questionnaire to be completed by responding suppliers.

Develop a scoring mechanism and apply weighting to each criteria to ensure that priorities are addressed. Don’t Develop a scoring mechanism and apply weighting to each criteria to ensure that priorities are addressed. Don’t be too rigid at this stage. It may be that new information is learned as suppliers submit responses that will change be too rigid at this stage. It may be that new information is learned as suppliers submit responses that will change your view of the criteria.your view of the criteria.

3.13.1

3.23.2

3.33.3

3.43.4

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

Page 15: 2. Develop Procurement Strategy 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 3. Supplier Evaluation & Selection 5. Induction & Integration.

Develop Pre-qualStrategy

Score, Filter& Notify

Develop &Launch Tender

Assess & Filter

3.2 Score, Filter and Notify3.2 Score, Filter and Notify

Based on suppliers responses, score each response Based on suppliers responses, score each response against the weighted selection criteriaagainst the weighted selection criteria

Confer with stakeholders and agree which supplier to Confer with stakeholders and agree which supplier to shortlist based on preferred commercial model and shortlist based on preferred commercial model and pricing principles as well as the weighted selection pricing principles as well as the weighted selection criteria scores criteria scores

Document which suppliers are unsuccessful including Document which suppliers are unsuccessful including rationale for non-selection and notify successful and rationale for non-selection and notify successful and unsuccessful suppliersunsuccessful suppliers

3.13.1

3.23.2

3.33.3

3.43.4

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

Page 16: 2. Develop Procurement Strategy 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 3. Supplier Evaluation & Selection 5. Induction & Integration.

Develop Pre-qualStrategy

Score, Filter& Notify

Develop &Launch Tender

Assess & Filter

3.13.1

3.23.2

3.33.3

3.43.4

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

3.3 Develop and Launch Tender3.3 Develop and Launch Tender

Amend the tender based on lessons learned from Amend the tender based on lessons learned from responses and prepare the relevant documents to responses and prepare the relevant documents to be issued to shortlisted suppliers.be issued to shortlisted suppliers.

Develop a set of weighted criteria by which tender Develop a set of weighted criteria by which tender responses will be assessed and agree this, together responses will be assessed and agree this, together with the rest of the tender, with stakeholderswith the rest of the tender, with stakeholders

Prepare all relevant communication to ensure that Prepare all relevant communication to ensure that suppliers are aware of what is expected of them suppliers are aware of what is expected of them and issue all tender documentation to suppliers. and issue all tender documentation to suppliers.

Consider contractual terms and conditions as well Consider contractual terms and conditions as well as day to day operational considerations. Matter as day to day operational considerations. Matter such as health and safety, invoicing and payment such as health and safety, invoicing and payment arrangements should all be clarified at this stage.arrangements should all be clarified at this stage.

For goods and services that will be ordered For goods and services that will be ordered regularly, ensure that the internal procedures for regularly, ensure that the internal procedures for placing and approving orders are understood and placing and approving orders are understood and documented as this may have an impact on the way documented as this may have an impact on the way the supplier is expected to interact with the the supplier is expected to interact with the business business

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Develop Pre-qualStrategy

Score, Filter& Notify

Develop &Launch Tender

Assess & Filter

3.4 Assess and Filter3.4 Assess and Filter

The purpose of this stage is to assess the The purpose of this stage is to assess the capability of the suppliers that have capability of the suppliers that have responded to tender and to ascertain if and responded to tender and to ascertain if and how they can fulfil the requirements of the how they can fulfil the requirements of the tender.tender.

As they are received, score the responses As they are received, score the responses against agreed weighted criteria. If against agreed weighted criteria. If possible, filter further to eliminate weaker possible, filter further to eliminate weaker suppliers.suppliers.

3.13.1

3.23.2

3.33.3

3.43.4

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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4.14.1

4.34.3

4.44.4

4.54.5

Prepare Negotiation Strategy

Conduct Negotiations

Finalise Contract

Award

4.24.2 P2P Design

Objectives

What you need before you start

Deliverables

1. Complete Negotiations and select best supplier

2. Award contract

1. Filtered List of Suppliers

2. Knowledge of Purchase to Pay process stakeholders

1. Agreed Purchase to Pay processes and KPIs

2. Signed Contract

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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Prepare Negotiation Strategy

Conduct Negotiations

Finalise Contract

Award

P2P Design4.1 Prepare Negotiation Strategy4.1 Prepare Negotiation Strategy

Prepare for the negotiation with short listed suppliers. Decide Prepare for the negotiation with short listed suppliers. Decide on the approach (face to face conversations, a collective on the approach (face to face conversations, a collective supplier conference and auction etc.) Based on the supplier conference and auction etc.) Based on the submissions , the pricing principles, the commercial model, submissions , the pricing principles, the commercial model, services level and the contract terms and conditions may have services level and the contract terms and conditions may have been amended. been amended.

Finalise the approach to these and ensure that there is legal Finalise the approach to these and ensure that there is legal support available if necessarysupport available if necessary

4.14.1

4.34.3

4.44.4

4.54.5

4.24.2

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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Prepare Negotiation Strategy

Conduct Negotiations

Finalise Contract

Award

P2P Design4.2 Purchase to Pay process design4.2 Purchase to Pay process design

Explore the process by which goods and services will be Explore the process by which goods and services will be purchased. Look for opportunities to reduce business risk purchased. Look for opportunities to reduce business risk reduce process time and effort and develop efficiencies. reduce process time and effort and develop efficiencies.

Will there be a need for a requisition and approval process. Will Will there be a need for a requisition and approval process. Will there be purchase orders and how will they be placed? How will there be purchase orders and how will they be placed? How will payment be made? Against a schedule, in response to invoices? payment be made? Against a schedule, in response to invoices? Will invoices be paper or electronic. Will invoices be sent Will invoices be paper or electronic. Will invoices be sent directly to AP or will the business need to see them first? How directly to AP or will the business need to see them first? How will segregation of responsibilities be employed to minimise will segregation of responsibilities be employed to minimise risk? Will the supplier need to put in place new or revised risk? Will the supplier need to put in place new or revised processes? Will there be training required either internally or processes? Will there be training required either internally or within the supplier?within the supplier?

Document the Purchase to Pay processes including details of any Document the Purchase to Pay processes including details of any authorisations that will be required . authorisations that will be required .

Identify and agree relevant Key Performance IndicatorsIdentify and agree relevant Key Performance Indicators

4.14.1

4.34.3

4.44.4

4.54.5

4.24.2

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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Prepare Negotiation Strategy

Conduct Negotiations

Finalise Contract

Award

P2P Design

4.3 Conduct Negotiations4.3 Conduct Negotiations

There are two primary goals in the negotiation:There are two primary goals in the negotiation:

1. To negotiate prices that deliver lowest total cost of 1. To negotiate prices that deliver lowest total cost of ownership while maintaining the suppliers’ ownership while maintaining the suppliers’ commercial viability. commercial viability.

2. Minimise/transfer risk: Commercial, reputational 2. Minimise/transfer risk: Commercial, reputational health and safety etc.health and safety etc.

4.14.1

4.34.3

4.44.4

4.54.5

4.24.2

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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Conduct Negotiations

Finalise Contract

Award

P2P Design

4.4 Finalise Contract4.4 Finalise Contract

Finalise commercial agreement and contractual terms Finalise commercial agreement and contractual terms with the supplier in preparation for award and agree with the supplier in preparation for award and agree achieved savings with budget holders and log them achieved savings with budget holders and log them on the savings registeron the savings register

4.14.1

4.34.3

4.44.4

4.54.5

4.24.2

Prepare Negotiation Strategy

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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Prepare Negotiation Strategy

Conduct Negotiations

Finalise Contract

Award

P2P Design

4.5 Award Contract4.5 Award Contract

Communicate the award of contract to successful as well Communicate the award of contract to successful as well as the unsuccessful suppliers. Communicate also to as the unsuccessful suppliers. Communicate also to relevant internal audiences. Ensure the contract is in place relevant internal audiences. Ensure the contract is in place prior to commencement of the service or product being prior to commencement of the service or product being purchasedpurchased

Be prepared to provide feedback to the suppliers about Be prepared to provide feedback to the suppliers about their performance throughout the process. Apart from their performance throughout the process. Apart from being a professional courtesy it can help maintain a being a professional courtesy it can help maintain a positive relationship with the unsuccessful supplierspositive relationship with the unsuccessful suppliers

4.14.1

4.34.3

4.44.4

4.54.5

4.24.2

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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4.14.1

4.24.2

4.34.3

LaunchSupplier

Post ProcurementReview

Objectives

What you need before you start

Deliverables

1. To ensure that the supplier is fully prepared to deliver all aspects of the contract

2. To ensure that all parties are familiar with agreed P2Ppolicies and procedures

3. To initiate the relevant performance measures and reporting

1. Signed contract in place

2. P2P policies and processes agreed

3. SLAs and KPIs agreed and understood

1. Business Requirement met

ContinuousIntegration

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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Post ProcurementReview

4.1 Launch Supplier4.1 Launch Supplier

Ensure stakeholders are aware of key changes to the agreement and Ensure stakeholders are aware of key changes to the agreement and processes Develop and agree communication plan. This can range from processes Develop and agree communication plan. This can range from distributing an email to interested parties to a full scale event to launch a distributing an email to interested parties to a full scale event to launch a major suppliermajor supplier

Initiate training programmes internally and ensure that supplier training Initiate training programmes internally and ensure that supplier training is underwayis underway

ContinuousIntegration

4.14.1

4.24.2

4.34.3

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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LaunchSupplier

Post ProcurementReview

4.2 Post Procurement Review4.2 Post Procurement Review

Monitor and review P2P process to identify Monitor and review P2P process to identify weaknesses and learningsweaknesses and learnings

Document learning points and recommend Document learning points and recommend amendments amendments

ContinuousIntegration

4.14.1

4.24.2

4.34.3

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract

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LaunchSupplier

Post ProcurementReview4.3 Continuous Integration4.3 Continuous Integration

Initiate performance monitoring and amend processes as Initiate performance monitoring and amend processes as improvements are identifiedimprovements are identified

ContinuousIntegration

4.14.1

4.24.2

4.34.3

1. Define Business Need

1. Define Business Need

2. Develop Procurement Strategy

2. Develop Procurement Strategy

3. Supplier Evaluation & Selection

3. Supplier Evaluation & Selection

5.Induction & Integration

5.Induction & Integration

4. Negotiation and Award of Contract

4. Negotiation and Award of Contract