Creating a Vision and Mission statements. The starting point of the process is initial assessment of the firm. Business' vision answers the question:
Strategic Planning in Purchasing and Supply Management: For many individuals, strategic planning conjures up images of expensive, time-consuming, arduous processes that, when complete, become monuments to the past or exercises in futility.
Usually, documents are dutifully distributed to all key players—who then file them, never to look at them again until a year later. Unfortunately, that has been the result of far too many purchasing and supply management strategic planning exercises.
The Need for Strategic Planning Every organization needs a strategic plan to make sure it knows where it's are going.
Strategic planning is all about setting the long-term direction of the company—knowing what the organization's goals, intentions and values are.
Purchasing business planning and strategy management group supply management executives often get so preoccupied with the immediate issues thinking tactically rather than strategicallythat they lose sight of their ultimate objectives.
Not only has technology given companies the opportunity to truly make purchasing and supply management more efficient and inexpensive, but companies are now spending a larger percentage of their revenue on products and services than they were 30 years ago.
As a result of these changes, more organizations need to put in place best practices that can guide their purchasing decisions and that can help them make their business a success.
Consequently, you need to transform your operations by aligning resources and technology to enable your organization to make the most cost effective purchases possible; thereby, enabling us to better understand our procurement spend and aggregate purchases of like items and services.
By answering the eight questions think about how you can contextualize their particular benefits for the C-level and how best can you adapt them to your organizational circumstances. Regardless of whether it is planning long-term program priorities or planning a two-hour meeting, the planning aspect of management is the major contributor to success and productivity.
Stated simply, "If you don't know where you are going, then you won't know when you have arrived! Having a strategic plan doesn't guarantee your success though. Very often, even when strategic plans are prepared, they are not implemented.
Sometimes the purchasing and supply management department employees don't even know of their existence, let alone understand the contents, and "buy in" to the goals and spirit of the organization.
Purchasing and Supply Management Strategic Plans are explicitly not detailed—nothing like a business plan. The strategic plan provides the foundation and framework for a business plan.
Strategic plans are visionary documents and not intended in any way to be operational plans. Instead, they are conceptual, directional, and long term.
While they are conceptual and visionary, they need to be concrete enough that they can be seen as realistic and attainable, so that you have something solid to hook your functional business and operational plans into, and so you can actually tell when you have achieved the stated goals.
Successful Strategic Planning and Business Strategy Successful strategic planning requires a focused effort, properly facilitated and logically organized, leading to a realistic plan that everyone supports and uses. Strategic planning is the extent by which a strategic approach is taken to purchasing and supply management decisions and the effectiveness of that function in developing and implementing procurement strategies.
|Definition||Implementation Schedule Implementation is the process that turns strategies and plans into actions in order to accomplish strategic objectives and goals.|
This requires a two-part effort: A strategic approach, and Strategies integrated with overall organization plan Business strategy is a road map telling us: To deliver the purchasing and supply management vision the function will need to ensure that is has robust processes supported by a high quality strategy and system.
Strategy execution requires business processes that do what the strategy calls for—and do it well. For instance, we might look at the actions and sourcing group opportunities that affect the procurement process.
Therefore, a direct link exists between the success of business strategy and business systems. That is not to say great systems mean a successful strategy, but poor systems are a frequent reason for the failure of a business strategy.
A Five- and Ten-Year Forecast" is a trend facing purchasing and supply management professionals. Ask yourself the following questions to help determine if the foundational building blocks are in place to successfully address strategy development in your organization.
Is the purchasing and supply management function in your organization deemed as a strategic group in order to gain acceptance and compliance from other business units?As illustrated by Figure 1, Strategic Management is an iterative, overarching, organization-wide, management process.
It aligns current decision-making, planning and execution with the organization's longer-term strategy, while simultaneously feeding new learning from up and down the organization into the next cycle of strategy reformulation.
Basic Strategy Concepts Learning Objectives After reading and studying this chapter, you should be able to: planning and management in an industry like health care where the ground In the true business management sense, strategy is distinguished by several key dimensions.
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The corporate planning team should be involved in the process in a way that is consistent with the management model, and a healthy tension should be established between the corporate center and the business units, resulting in productive strategic dialogues.
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MaRS – Business Planning and Financing Management Series Building Block 1 – Developing a Financing Strategy for Your Company How to use these workbook guides 1.
Make it a team exercise—but make it quick! Pulling the background information and strategy .