This document provides assessments for individuals and organizations to evaluate their purchasing departments.
For individuals, the assessment ranks 10 critical areas on a scale of 1 to 10, such as travel opportunities, training, compensation and recognition. The total score is multiplied by 10 and compared to benchmarks.
For organizations, the same process ranks areas like spend categorization, cost management, supplier relationships and purchasing's role.
The document advises considering individual and organizational scores together. Strong individual scores but weak organization, or vice versa, may indicate the need for career changes within or outside the current company. The goal is to celebrate successes or make plans to improve situations in 2014.
2. Is it time to Celebrate?
How
does your
Purchasing
Department Compare?
More Importantly how
are things going for
YOU professionally
and should you make a
change?
3. Purchasing Assessment
For Individuals
Review 10 Critical Areas
Rank 1 to 10
Guidance given for Low
Mid Range and High
Scores
Multiply total by 10
Compare total score to
scale
For Organization
Review 10 Critical Areas
Rank 1 to 10
Guidance given for Low
Mid Range and High
Scores
Multiply total by 10
Compare total score to
scale
Both Assessment Tools developed based on proprietary Purchasing benchmarks
including objective and subjective inputs and multiple direct interviews.
4. Purchasing Individual
Assessment
Rank
Area
1
Travel to interesting places with good travel policy No
5
Some travel with stringent policiy
10
High impact and intersting travel with travel policy supportive of
you
Seminars and Training
Not encouraged
When budget availible and limited scope
and out of pocket
Viewed as vital to continued improvement and development.
Minimum one seminar and one training annualy. Global scope
and locations preferred.
Raise and Bonus
No
Raise and Bonus Better than Last year
Recognition by Executives outside of purchasing
No
Nice work environment free coffee and sodas
No
Corporte Cube with Free Coffee
Innovative Workspace with food and refreshments to make day
nice
Occasional acceptable entertainment from
supplier
No
Lunch, Golf or Game ticket, candy at Christmas
Offsite working seminars at interesting places, Attend Supplier
Sponsored Charity Events
Boss takes team to lunch or dinner sometimes
Never
Corporate Lunch at Christmas
Sincere both at work and also when traveling
Good Purchasing system and resources like
computers, smartphone and company credit card
Manual and you Basic resources SAP or Oracle with Dell
provide everything Computer and reimbursed for cell phone
Flexible work hours when needed
Clock in and out
Basically yes but not consistant in organization
and required to us vaction or make up hours
Yes as focus is on results and team and not rewarding just
showing up
Good Coworkers
Rack and Stack
Competitve work
enviornment
Friendly work Enviorment
Coworkers that have diversity of skills and talents that work
together to improve and exceed goals
Small Raise
Ocassional Recognition from Functional
Executives
C Staff Level
Innovattive use of traditional ERP combined with best in class
cloud based Purchsing tools. Computers and Smart phones with
gloabal reach provided for and paid directly by company
5. Individual Assessment Results
Individual Results
Above 90 Dream Job
40 to 70 Normal
20 to 40 New Job?
0 to 20
Change
Score
70 to 90 Great
100
90
80
70
60
50
40
30
20
10
0
Dream Job
Great place to be
opportunities for
even bigger
things
Normal
Comment
You can do Better Better ways to
earn a living
6. Purchasing Organization
Assessment
RANK
Area
1
5
10
Spend Categorized
Not Sure what this means
Focus on few perceived critical areas
Global data readily availble with spend leaders and teams assinged with
subject matter support as needed
Total Cost
Do not measure
Cost Savings Focus
Total Cost view with link to revenue as well
Internal Measurement
None
Lagging Measures
Leading Measures in place to track path to success
Supplier Site Visits
Never
Based on need and budget. Focused on audits
Formalized results driven reviews on a regular cadence
Direct materials
Order and plan Manually as needed Supplier Management approach with key Suppliers
Suppliers dirctly aligned with plans with transparent communicatins
Indirect material
Just place orders
Maanged Locally but primary decisionmaking with requestors
Streamlined Globally Integrated webbased tool
Training
None
Relevant training when budget availible
Global Program Fully Funded Including Seminars and Experiential OJT
Place in Organization
No Formal Purchasing Function
Reports to Level below Executive Staff
CPO Level
Supplier Performance Measurement No
Only to meet audit requirements
Integrated Global System with real-time data focused on few key
measures
New Product Development
Brought in Occasionally
Integrated as part of process
Not Involved
7. Purchasing Organization Assessment
Results
Organizational Result
Above 90 World Class
120
Great
40 to 70
Normal
20 to 40
Developing or
Stagnant?
0 to 20
Not Relevant
100
80
Score
70 to 90
60
40
20
0
World Class
Great
Normal
Comment
Stagnant or
Developing
Purchasing Not
Relevent
8. Combining Assessments for
Action
In some cases
requires very
personalized
consideration
Take Action if needed
Celebrate now or
when you get what
you want!!!
100
Organization
Consider scores
together.
Requires further
self review and
adjustment.
Maybe
temporary issue.
Try to fix things
in 2014 but start
networking.
Stay
where you
are!!!
If you like
Purchasing find
job at a new
company. If you
like the company
move to new
department.
If you are happy
no need to
change unless
you want growth
opportunity
Individual
100