Procurement Transformation 

We are committed to sharing knowledge on procurement “best practice and next practice” gained from our work with practitioners.

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Procurement Transformation:

examines opportunities for transformational cost reduction and supplier value maximisation in procurement.

Strengthening the NHS Procurement Strategy
This paper was presented to the Prime Minister’s special advisor on health in June 2014 and outlines a number of policy imperatives, along with recommendations to strengthen the current NHS procurement strategy.
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Why Procurement Transformation is Central to the Sustainability and Efficiency of the NHS
This Executive briefing, written in conjunction with Henley Business School, looks towards a blueprint for collaboration between stakeholders to address the forecast NHS shortfall of upto £34bn by 2020. Today there is £108bn+ total commissioning........
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Transform Your Supply Chain – Releasing Value in Business
Transform Your Supply Chain – Releasing Value in Business, Jon Hughes, Mark Ralf & Bill Michels. Published by International Thomson Business Press. This book provides comprehensive coverage of the rapidly emerging field of strategic procurement and strategic supplier management, as practiced by leading organisations worldwide.
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Connecting Purchasing & Supplier Strategies to Shareholder Value
This executive briefing examines four themes: Identifying the pioneers: maximising sustainable shareholder value with suppliers. Maintaining momentum: catch up, performance improvement and best-in-class purchasing. Capturing & creating value: it’s time to take Supplier Relationship Management seriously. Securing the changes: development of future leaders, capabilities and competencies
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Aligning Procurement to the Government's Policy Goals
Future Purchasing and Henley Business School, University of Reading, outline their blueprint for public procurement reform. 2012.
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Why Public Procurement is Central to the UK's Economic Performance
Argues for a radical refocusing of political policy and executive leadership on to a strategy for deficit reduction, service delivery and economic growth through transforming public procurement.
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Exploiting the Strategic Power of Supply Management
Future Purchasing, in conjunction with CIPS, sponsored this research with Henley Business School, University of Reading. It is the first study of its kind to assess the degree of impact that procurement and supply management has on the bottom line of the business.
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Reframing Procurement's Strategies, Priorities and Deliverables, Part 1: Benchmarking Performance against Ten Value Levers
An article that positions maximisation of value, minimisation of cost and balancing of risk as guiding propositions for procurement. It covers three main types of sourcing and supplier value management (SVM) initiatives as well as a tool for benchmarking procurement transformation. DILF Orientering [April 2011]
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Reframing Procurement, Part 2: Accelerating Cost Down Initiatives - Unlocking the Missing 20%
The second article in the series focuses on how organisations are accelerating cost down initiatives to unlock the missing 20% of cost down opportunities. A 10x10 value lever framework is detailed for achieving this at the business organisational level, and at the sub-category and supplier level. DILF Orientering article [June 2011]
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Reframing Procurement, Part 3: The Value of Value in Supplier Relationships
The third article in this series assesses the options for building different types of value from supplier relationships, and positions them in relation to ten levers capable of minimising cost, balancing risk and reward, and positioning procurement as a driver of relational value creation in both the private and public sector. DILF Orientering article [August 2011]
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Reframing Procurement Part 4 | Market Interaction Strategies
The fourth article in the series argues that a market approach with greater cohesion between mutually dependent strategies – in relation to categories, suppliers and risk – will minimise the risk of inexpedient contracts and in turn, renegotiations and contract failures
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Reframing Procurement, Part 5: Performance Delivery and Strategic Capability Development
The fifth, and final, article in the series – produced by a worldwide collaboration team from Future Purchasing, Henley Business School University of Reading, Vantage Partners, DILF, Kairos and Archer Mann – examines how to maintain momentum in procurement transformation through investment in leadership, processes and people. Value maximisation, cost minimisation and risk balancing cannot be achieved without building procurement’s strategic capability. This is the prime source of competitive advantage and the key to superior performance. [August 2012]
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Next Level Procurement, Benchmarking the Journey to Best in Class Performance
Summarises 15 key differentiators of “Next Level” procurement peformance grouped around three fundamental enablers of leadership, processes and people. Integrates the views of leading European CPOs and their progress in pursuing the transformational journey detailed in the article. (December 2012)
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Pulling Power: Six Performance Levers for Strategic Sourcing
To make strategic sourcing a core competence in your business, there are six performance levers you need to master. They are detailed in this CPO Agenda article (Spring 2005).
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Managing the Matrix
Organisational design is a minefield for the unwary. Adopting a more systematic and authoritative approach is central to the success of CPOs and is covered in this CPO Agenda article (Winter 2005).
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Public Sector Communiqué Issue 1, February 2013: Nine Actions to Secure Procurement Transformation
Summarises the written submission made to the Public Administration Select Committee (PASC) in the UK House of Commons on 22nd January 2013, and the oral evidence presented to the PASC by Jon Hughes, Chairman of Future Purchasing.
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CPO Communiqué: High Performance Pharma Procurement: Business Cases and Road Maps for Change
Highlights typical responses of leading CPOs to the necessary reinvention of the pharmaceutical business model.
Sector Analysis: Pharmaceuticals Industry
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CPO Communiqué: Leadership and the Value Levers
Summarises four internal and six external levers for maximising value delivery. This provides the guiding framework for the CPO Communiqué:
Case Study: Lehman Brothers.
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CPO Communiqué: Don't Waste a Crisis
Examines survival and business development initiatives in procurement throughout the financial crisis.
Case Study: Taylor Woodrow.
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CPO Communiqué: Strategy as Process: Balancing Quick Wins with a Strategic Approach
Highlights seven ways of making procurement strategy creation a more powerful value lever.
Case Study: Procter & Gamble.
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CPO Communiqué: Strategy as Behaviour: Creation and Deployment of Successful Mid-Term Procurement Strategy
Covers five broad competencies and relates them to effective strategy and leadership behaviour.
Case Study: Diageo.
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CPO Communiqué: Boom, Bust and Beyond
Reviews the economic crisis, prospects for the new decade and ten resolutions for procurement action.
Case Study: Toyota.
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CPO Communiqué: Consortia & Collaboration, Part 1: Different Consortia, Purpose & Deliverables
Highlights the role of procurement consortia in leveraging spend, process and capability.
Case Study: BMW.
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CPO Communiqué: Consortia & Collaboration, Part 2: Change the Operating Model: Unlock the Value
Uses different types of consortia and collaborative structures to highlight substantial value capture.
Case Study: Deutsche Telekom & France Telecom.
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CPO Communiqué: Consortia & Collaboration, Part 3: Performance Enablers vs. Limiting Factors
Balances critical success factors with potential limiting factors in making procurement consortia work effectively.
Case Study: 21st Century Supply Chains.
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Insight Guide: Three Phases of Change in Procurement
Builds on a framework for change management maturity and examines performance improvement and strategic value capture within an integrated approach
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Insight Guide: Make-Buy: Opening up the Options for Procurement Operating Models
Considers the need for procurement leaders to align their teams and operating models to strategy and the maximisation of shareholder value.
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Procurement Leadership

covers best practices for strengthening, re-energising and professionalising high performance leadership teams.

Leadership at the Crossroads
The capabilities required for world-class procurement are changing significantly. They call for a very different leadership profile that is explored in this CPO Agenda article (Autumn 2006)
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The CPO's First 100 Days
Outlines ten approaches that can ensure a CPO builds the right platform to secure a mandate for change during their first 100 days. Procurement Leaders article (2010).
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Leadership & Talent Management: Delivering Against the Promise: Next Generation Skills & Capabilities
This major report and CPO briefing was developed from a comprehensive survey of participants at an international forum, and contains guiding frameworks on the nature of procurement leadership and talent management relevant to all organisations.
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CPO Communiqué: The CPOs First 100 Days
Covers ten early approaches that secure permission for procurement change.
Case Study: Lundbeck.
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CPO Communiqué: New Leadership Profiles: Critical Behaviours and Competencies
Provides an assessment and coaching framework around five leadership competencies and an example from key account management.
Case Study: Deutsche Post DHL.
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CPO Communiqué: Conscious (In) Competence: State of the Art on Competence Assessment
Reviews the state of the art of procurement competence assessment and five emerging trends in its application.
Case Study: LEGO.
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CPO Communiqué: Re-energising Procurement Leadership Teams
Deals with five dysfunctions of teams and coaching interventions to address them.
Case Study: BT.
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Insight Guide: Developing Next Generation Leaders
Focuses on the influencing challenge and emerging role profile for pivotal leaders in procurement.
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Insight Guide: Authenticity in Procurement Leadership
Provides a self assessment on authenticity in leadership for procurement professionals.
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Benchmarking & Diagnostics:

identifies untapped sources of value across ten levers, and ways of closing the performance gaps.

CPO Communiqué: Stretch Goals and Benchmarks: Indicators of Best Practice
Describes a number of best practice benchmarks across ten value levers.
Case Study: UK Ministry of Defence.
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Insight Guide: Benchmarking the Value Levers
Summarises four internal organisational levers central for change management and six external supplier facing ones.
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Insight Guide: Benchmarking Procurement
Identifies the three levels of benchmarking for procurement teams to assess their capabilities
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