Consulting Q&AWhat is procurement maturity?
René SharmilaRené Sharmila asked 2 years ago

1 Answers
Laurent Grandisson answered 2 years ago

Procurement maturity refers to the level of efficiency and organization of a company’s procurement service. As a result, Procurement Maturity Assessment (PMA) refers to the process of determining a company’s procurement maturity index. It is calculated using a matrix that represents a grade and describes as different levels of mastery of purchasing-related macro-processes. These levels can then be compared to industry best practices to develop an improvement strategy.

Moreover, using this methodology in a real-world context allows a corporation to identify the most critical holes in its procurement organization, and to identify a precise chain of actions for improvement. That being said, the definition and titles of maturity lever may vary from one company to another. But you should keep in mind that the core idea remains the same.

For instance, as per Coupa, the focus is on three interdependent elements: people, processes, and technology. In reference to these three factors, you may determine at which of the four stages your organization is at. It could be at the tactical and operational level, or the sourcing mastery level, or perhaps the category strategy level, or maybe at the highest level of business innovation.

And according to Consulting Quest, the procurement maturity model commences with the operational or tactical procurement, then moves onto the strategic sourcing procurement, and then the strategic category management procurement, and finally progresses to the best-in-class procurement capabilities. It provides a concise overview of the ways procurement professionals may incrementally add value to their organizations by enhancing the functionality and efficiency of their procurement departments in key areas.