I interviewed Paulo Moretti who discussed Measuring Purchasing Maturity.
Please provide a brief background of yourself
I have worked 35 years at Dow Chemical where I developed experience in diverse areas as: Manufacturing, R&D, Sales, Marketing, Business, Finance, Economic Evaluation, Strategic Planning, e-Business and Purchasing.
Please explain what you mean by Purchasing Maturity
The idea comes from the research funded by the U.S. Dept. of Defense to develop the Capability Maturity Model (CMM), where the term "maturity" relates to the degree of formality and optimization of processes, so basically each Purchasing function has reached a level in their own organization in terms of all dimensions like: Tools, Internal Clients, Suppliers, Organization, Staff, Policy, Process, and Metrics.
Each purchasing function has evolved through the years, by themselves or with help from consultants, to a certain level, and this maturity tool was developed to help in their self-assessment to find areas of opportunities.
Please explain this Maturity Tool?
The model consists of a spreadsheet with eight dimensions to consider for purchasing maturity: Tools, Clients, Suppliers, Organization, Staff, Policy, Process, and Metrics.
Each Dimension has several elements to be scored. For each element, users can select via the drop-down button the score that most closely reflects the purchasing function: 0, 1, 2, or 3 (with 3 rated as Very Mature).
The score for each element has a description to guide user assessment. After scoring all 55 elements, the Result tab will show the maturity level in each dimension and the overall result for the Purchasing function.
How the results are shown?
The results of each analysis are presented in graph form for the eight dimensions, as well as the maturity level for each dimension, in a “maturity meter” with the overall classification, as:
1. Starting / Performing: Purchasing is not a core competency. It is buried deep in the organizational hierarchy. Staff actively disengaged.
2. Enabling / Optimizing: Purchasing is seen as a "value-added" function. Clients and Suppliers are satisfied for the most part. Employees are engaged but view this as a "job." There are some spot best practices.
3. Best in Class / World Class: Purchasing is strategic core competency. The organization is proficient at expected business practices. There is a high degree of Client and Supplier satisfaction. The organization is staffed with highly qualified professionals. There is a high degree of automation. It is metrics driven. It is an efficient and effective organization.
How our audience can have access to this tool?
You can download the tool from the article MEASURING PURCHASING MATURITY at MyPurchasingCenter, or click in the link: http:/www.mypurchasingcenter.com/purchasing/industry-articles/measuring-purchasing-maturity/
About Paulo Moretti
Principal - PM2Consult