Without a comprehensive procurement strategy in place, it is difficult to gauge whether the procurement organization is aligned with the corporate strategy or not.
Below are few steps which helps in creating and communicating a strategic plan that aligns procurement’s strategy with the corporate strategy.
– Define and set the objectives and action plan. Also set the timelines for the strategic planning process and communicate the outcome to the management.
– Understand the corporate goals and how they relate to the procurement department. In order to understand the goals, it is important to have meeting with the key personnel of the organization. Evaluate the current capabilities of the procurement department to support the corporate goals to determine whether are there any skills the procurement department needs to build upon.
– Evaluate from where the work is starting and its effectiveness at key capabilities; seek the feedback from the management on the strengths and weaknesses of the department. Identify the areas for improvement and work on the areas of improvement.
– Develop strategic initiatives to meet the set objectives. Define metrics to measure the progress and decide on what resources are needed to put the plan into action.
– Once the plan is ready communicate it to the management and the department.
– Monitor the progress and document each lesson learned while working on the set plan.