Procurement Maturity: A tool for Supply Chain Improvement

The level of efficiency and organization of a procurement service of a company canbe described as its Procurement maturity. Procurement Maturity Assessment (PMA) hencedescribes the method used to define a company’s procurement maturity index. It iscalculated based on a matrix which gives the descrip...

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Bibliographic Details
Main Author: Bloch, Alexandre
Format: Others
Language:English
Published: KTH, Industriell produktion 2011
Online Access:http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-44911
Description
Summary:The level of efficiency and organization of a procurement service of a company canbe described as its Procurement maturity. Procurement Maturity Assessment (PMA) hencedescribes the method used to define a company’s procurement maturity index. It iscalculated based on a matrix which gives the description of 5 levels of mastery of somepurchasing-related macro-processes, representing a grade. These levels can then becompared to best-practices, in order to draw an improvement plan.The application of this methodology to a real company gives the possibility topinpoint the major gaps in its procurement organization compared to a defined goal, and todraw a specific chain of actions for improvement. Applied to a specific company (major carequipment manufacturer), an integrated software solution was implemented to improve theoverall supply chain value by reducing procurement costs and improving visibility onopportunities for globalization.