of respondents highlighted they do not consider
Procurement’s role to be strategic
of respondents mentioned that their organization
does not have a formal Procurement function
Ask yourself these 10 simple questions to find out how mature procurement is at your
Do you know how much your company is spending with all your third-party vendors?
Are you leveraging your collective purchasing power during negotiations with vendors?
In other words, are you leveraging all your enterprise wide spend with vendors or are you
negotiating each SOW individually?
Are all your supplier contracts stored in a centralized repository?
Does Procurement, Legal and the Business receive alerts 6 months in advance of when a
contract is going to expire?
Do all your vendor contracts include the following clauses?
Termination for convenience
Limiting Automatic Price Increases
Insurance / Indemnification clauses
Does your company have KPI’s and SLA’s in all your vendor contracts? Does your
organization actively monitor these KPI’s and SLA’s to ensure your vendors are meeting
Have all your vendors been properly risk rated to ensure there are no potential security
Does your company have standard RFP templates and negotiation toolkits?
Do you have benchmarking information for what is the best pricing in the market for your
negotiations with your vendors?
Do you publish RFPs to multiple vendors for new projects and contract renewals or do you
sole source with a single vendor?