As procurement maturity evolves and the complexity of management and performance expectations increases, the concept of “Planning” in a procurement context is becoming increasingly important. The following article provides an overview of the procurement planning context, problems that it solves, inputs, outputs, and a structured approach to developing this capability.
In today’s dynamic business environment organisations and their leaders are continuing to grapple with uncertainty and as a result are required to create more intentional alignment between “Value”, “Delivery” and “Projects”, and how we bring structure to the interrelation of these three aspects.
From a Procurement and Supply Chain standpoint, we are seeing now more than ever the importance of effective planning and risk management, but also the challenges that arise when it is not done well, or not done at all. Inherent in this is the need for Procurement functions to be clear on their purpose, and then translate this into their ‘focus', and ability to prioritise value.
In addition, Procurement functions are dealing with an increasingly complex environment driven by several factors:
As a result of these challenges, a renewed emphasis on planning has arisen and the need to deploy a more structured planning capability across Procurement functions.