![]() ✉️ Join my monthly newsletter for curated Procurement Tech content from across the web (link on profile)Ī submarine is just an expensive metal tube without its crew. □□ Follow me to cultivate a better understanding of Procurement Tech #Procurement #ProcurementWithPurpose #ProcurementTransformation #SourceToPay #Suppl圜hainManagement #OperationsManagement Give me a □ if you want a future post where I define each process in detail. What process groups or processes would you add/remove? What terms would you change? Do you despise purple? Let me know in the comments. I’ve therefore excluded them from my Procurement Value Chain. While these are important processes, they are not specific to Procurement. This list does not cover “secondary” activities needed to run Procurement like people management, career development, succession planning, recruiting, budget management, application administration, etc. Then, it’s a question of ensuring current and future state processes are mapped against this hierarchy to identify, illustrate and address the change impact of any project. With every project, I end up modifying/adding/separating processes to this hierarchy according to the context of the business/commodities and what will work best in that particular context. This pays dividends later on when you want to implement software to support these processes. I’ve cut the processes up in this fashion because it matches up nicely with how the Procurement application market is structured. Whenever I start a new continuous improvement project, I use this hierarchy as a starting point to define a common language, scope and objectives for the project with stakeholders. In the Process Management lingo, we call it a Business Process Hierarchy (BPH). The Procurement Value Chain is the catalog of all “primary” processes a Procurement function needs to meet its operational goals.
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