Published: July 2025 | Reading time: 6 min
Step 1: Understand Your Business Need
Why: To align your procurement actions with business priorities.
How: Interview key stakeholders, define KPIs, and identify pain points.
Tips: Use a simple interview template with questions on current challenges, dependencies, and expectations.
Step 2: Analyze Spend & Supply Market
Why: Visibility into where the money goes and who holds the power.
How: Pull spend data, categorize it logically, and research key supplier trends.
Tips: Don’t just use past 12 months – look for shifts in demand or availability.
Step 3: Assess Risks and Dependencies
Why: To prepare for potential disruption or cost volatility.
How: Use a risk matrix – score each supplier/category on criticality vs risk.
Step 4: Define Strategy Options
Why: Good strategies are based on insight, not habit.
How: Consider Kraljic positioning, TCO levers, demand management, standardization, etc.
Step 5: Set Action Plan
Turn insight into action. Define priorities, owners, timelines.