In this issue 30 January 2020:

Procurement Procurement Capability and Maturity Model

Introduction

At TKJ we start the procurement transformation process with a Procurement Capability and Maturity Assessment (CAMM). Our CAMM has been devised to enable development across the end-to-end procurement value chain, addressing people, process, systems and structure in line with industry best practices. Our assessments highlight strengths as well as development needs, and the resulting action plans are integrated into everyday operations for continuous improvement.

“Being a strategic business partner means so much more than negotiating a discount” — (Remko van Hoek, 2013).

Capability and Maturity Model

Case Study – Project Ignite

Approach

  • Used CAMM for rapid establishment of procurement excellence across 16 African countries at a blue-chip bank utilising a brand-new style of work with a fast-moving, outputs-driven, all-hands-on-deck, consultancy-style approach

  • Utilised organisation-wide consultation, thought leadership training, talent management and practical implementation approaches

  • Leveraged business objectives and best practices

CAMM Best Practices

  • Strategic Sourcing:
    Define, formalise and embed Sourcing best practices in Rest of Africa Procurement to enable reduction in TCO of goods and services based on the consideration of Centre-Led, Regional and In-Country Procurement

  • Supplier Relationship Management:
    Define, formalise and embed a Supplier Relationship Management Framework in RoA Procurement to drive reduction in TCO of goods and services

  • Business Intelligence:
    Define, formalise and embed the Procurement Management Information Framework for RoA across the Source to Pay Lifecycle to provide visibility of compliance

  • Procurement Governance and Risk Management:
    Define, formalise and embed the Governance, Risk, Control, Compliance and Audit framework in RoA

  • Procurement Operational Processes, People and Capability and Enabling Technology:
    Define, formalise and embed the RoA Capability Plan to drive improved service delivery and execution across the Source to Pay Lifecycle. The consideration extended to: Processes, Systems and People and will be continually leveraged to help professionalise the procurement industry in Africa

  • Organizational Interfaces:
    Define, formalise and embed the Stakeholder Engagement Framework in order to bolster relationships and the strategic extraction of value

Summary of Achievements

  • Savings improved by 177% due to the implementation of Category Management

  • Implementation of SRM and Contract Management Framework to improve 3rd Party Risk Management

  • Integrated Risk and Governance Framework implemented which led to 83% improvement in audit results

  • Implementation of Capability Improvement plan that improved the people, process and technology capability.

  • MI Reporting

  • Risk and Compliance Reporting

  • Contract Management Reporting

  • Customer Satisfaction Surveys

  • SRM

  • Benefits Reporting

  • Performance Management Scorecard

janineh@tkjprocurement.com | etienneh@tkjprocurement.com | www.tkjprocurement.com