Purchasing performance benchmarking
How does your purchasing organisation compare
to best practice?
What pragmatic steps do you need to take in the
medium to long term to improve?
Product definition
A proven methodology that captures purchasing’s
performance and effectiveness and delivers action plans to drive sustainable
improvement. It enables the client to establish challenging, quantified
targets against which to track progress supported by a clear business
case.
Background
PMMS has developed a well proven methodology to objectively evaluate
the performance of an organisation’s purchasing operation and
benchmark this performance against world-wide best practice. To date,
PMMS has analysed and benchmarked the performance of over 80 purchasing
operations world-wide, providing an extensive database and a clear
view of what constitutes ‘best practice’. The benchmarking
methodology has been progressively updated to reflect that purchasing
best practice continues to advance, for example, in the availability
and use of technology and environmental procurement.
PMMS’ purchasing performance benchmarking experience also covers
many business sectors including manufacturing, oil/gas/petrochemicals,
financial services, telecomms, the public sector, electronics, transport,
utilities and retail and leisure:
PMMS benchmarking track record
This wide experience has demonstrated that
the PMMS benchmarking methodology can be successfully applied to purchasing
operations independent of both their size/complexity and the nature
of the business sector in which the organisations operate.
Deliverables
Benchmarking will provide the client with:
A detailed, objective assessment of how the client’s procurement
operation compares with ‘best practice’.
How the performance of the client’s procurement operation compares
with the extensive PMMS Benchmarking Database (which contains details
of all of the purchasing operations PMMS has evaluated world-wide
using the benchmarking methodology) together with a ‘bespoke’
comparator base selected from the database e.g. financial services
sector companies.
A clear and detailed analysis of the ‘gaps’ between the
client’s current procurement operation and ‘best practice’.
An analysis of business needs and, as a result, how far the organisation
needs to move towards best practice in order to meet these needs.
A prioritised, benefits driven set of action plans to address the
identified ‘gaps’ and to meet the business needs.
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