Assessing Procurement Excellence: How Does Your Function Measure Up
Eager to gauge the efficiency of your procurement function? Dive into its effectiveness with H&Z. H&Z’s World Class Procurement Assessment allows clients to benchmark performance, cost savings and strategic value
With procurement responsible for up to 75% of a company’s cost base, the performance of the procurement function is a critical driver of profitability and value. Benchmarking the procurement function is an expert assessment process that, when done right, can lead to significant enhancements in performance, cost savings, and strategic value for an organization.
World Class Procurement Assessment – benchmarking Procurement Excellence
H&Z's comprehensive Procurement Assessment offers a holistic view of your procurement landscape, pinpointing challenges and benchmarking performance with precision. Combining our on-line tool with 1:1 discussions, with not just procurement stakeholders but also with key organizational interfaces and business partners, we provide a clear view across competencies, processes and performance levels.
Based on more than 25 year’s experience , our on-line database benchmarks against over 1000+ procurement organizations across all sectors. The World Class Procurement Assessment highlights both strengths and weaknesses and the gap to procurement excellence.
Why Benchmark Your Procurement Function? Twelve Compelling Reasons
- Performance Comparison: H&Z’s benchmarking provides an external standard to which you can compare your procurement processes, helping you identify gaps in performance.
- Identification of Best Practices: By comparison with top-performing organizations, companies can identify and adopt best practices that lead to greater efficiency and effectiveness.
- Cost Savings and Value Creation: Understanding where you stand compared to industry, competitor and maturity benchmarks can help you identify opportunities for cost savings and value creation.
- Leveraging digitalization: Effective use of digital solutions is a key lever of procurement effectiveness. Understanding the degree of digitalization enables you to identify precisely where digital transformation is available.
- Increased Efficiency: By comparing processes, timeframes, and other metrics, companies can identify areas of inefficiency in their procurement function and take steps to address them.
- Empowered Decision-making: With solid data on how the procurement function is performing in relation to others in the industry, leadership can make more informed strategic decisions on operating model, outsourcing and technology
- Risk Mitigation: Understanding how peers handle supply chain risks can lead to better strategies for risk identification, assessment, and mitigation.
- Sustainable Procurement: Understanding your Scope 3 emissions and the degree to which procurement is supporting your ESG objectives provides the foundation for sustainable procurement.
- Enhanced Stakeholder Value: With improved efficiency and reduced costs, there's potential for increased stakeholder value, whether it's for shareholders, customers, or other parties.
- Driving Continuous Improvement: Regular benchmarking ensures that the procurement function doesn't stagnate and continually evolves to match or exceed industry standards.
- Increased Supplier Performance: Understanding industry standards can also guide companies in setting clearer expectations and performance standards for their suppliers.
- Setting Clear Goals and Objectives: By knowing what industry standards and best practices are, it becomes easier for businesses to set clear, measurable goals for their procurement teams.