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Procurement Process

ROSMA℠ enabled Procurement Performance Management

An essential component to success in any organization is having holistic insight into activities and drivers that define the organization's mission. This level of insight helps the accurate assessment of an organization's performance and, more importantly, identifies areas for improvement. The procurement process is not exempt from this concept. Supply management leaders continue to seek the right method for measuring their organization's contributions and procurement process, as well as the drivers for sustainable success.

A.T. Kearney has identified the drivers required for procurement leaders to achieve sustainable success through better performance process management. We are developing an advanced Procurement Performance Management (PPM) solution that incorporates these drivers. The solution provides the means to measure and assess elements such as sourcing excellence, benefits tracking methodology, value-driven metrics, the breadth and depth of procurement engagement into the enterprise, and strategic resource management. It also incorporates the new Return on Supply Management Assets measurement, ROSMA℠, a revolutionary financial indicator that translates procurement's created value and required investments into a metric that captures the CFO's attention and allows supply managers to continuously compare and improve performance. The PPM solution not only helps procurement leaders gain insight into the key components of their organization, but drives higher efficiency and effectiveness.

Procurement Process, Procurement Management

Key Attributes of ROSMA℠ Framework
  • Provides a sustainable framework to assess Procurement Performance Management
  • Offers insight into supply management value drivers, enabling CPOs to set their agendas and optimize performance
  • Offers a platform for a holistic discussion with stakeholders
  • Illustrates value in “CFO resonating language” (metrics accepted in the financial community)
  • Benchmarks performance on a peer-to-peer basis or among industries
Key Attributes of PPM Solution
  • Powered by ROSMA℠, provides visibility into supply management value drivers
  • Manages the hard financial metrics; improves identification and validation of critical intangibles
  • Improves work methods, reporting, measurement tracking and resource management
  • Provides visibility into potential projects pipeline, facilitates clarity in roles between procurement and stakeholders, and enables financial validation of benefits
  • Built on a universally available low-cost platform (e.g., SharePoint)
How A.T. Kearney uses ROSMA℠ and our PPM solution to improve business performance

A.T. Kearney uses the ROSMA℠ toolset and framework to help companies improve their Procurement Performance Management.  We assess current capabilities, determine critical gaps against desired state and best practices, and build an improvement initiatives roadmap.

We also are gathering ROSMA℠ benchmark information from our latest Assessment of Excellence in Procurement™ Survey (AEP) – an industry-leading survey that benchmarks procurement best practices and projects future trends across industries and geographies. Survey insights will be leveraged in our Procurement Performance Management assessments to provide companies with game changing strategies.

In support of advancing Procurement Performance Management, A.T. Kearney is developing an advanced PPM solution driven by the ROSMA℠ framework.  The PPM solution not only manages the hard financial metrics streamlined by ROSMA℠, but also identifies and validates critical intangibles, such as sustainability and supplier diversity initiatives, addressed by procurement to drive business objectives. A.T. Kearney uses the PPM solution to help clients drive key initiatives, such as project pipeline management, velocity improvement, benefits validation and overall business performance.

Contact us for more information  
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