Enterprise-wide procurement strategy has been developed with participation of key business stakeholders and agreed at C-Suite level.

Enterprise-wide procurement strategy has been developed by procurement with reference to wider corporate strategy but with limited cross-functional input and no C-Suite sign-off.

Procurement staff aware of the procurement strategy but little evidence that it is a factor in day-to-day decision-making. KPI's reported to the CPO and are primarily focused on cost reduction.

Clear evidence that strategy is being used to guide decision-making in procurement activity across the business. A balanced set of KPI's is used to regularly monitor performance against strategic goals. Performance is regularly reported to C-Suite executives.

As option above, plus executives empower the local/business unit levels with some of the necessary tools and resources to execute the strategy.

As option above plus, executives empower the local/business unit levels with all the necessary tools and resources to execute the strategy.

Centre-led procurement organisation - consisting of dedicated cross-functional/cross-organisational teams; decentralised procurement execution. Very effective resourcing in all areas from both capacity and capability perspective.

Corporate procurement office strategy and execution with effective resourcing in most areas.

Centralised procurement strategy function utilising some local/business unit level resources; decentralised procurement execution. Effective resourcing in most areas from both capacity and capability perspective.

Using procurement technology; central procurement provides strategic sourcing, supplier performance management and benefits realisation support.

Purchased centrally through strategic sourcing and transactional activities.

Procurement provides strategic sourcing, supplier relationship management and benefits realisation support using standard technology/tools. Activities are coordinated through central procurement and shared across the organisation.

Centralised procurement personnel report to responsible corporate manager. Personnel performing procurement activities at local/business unit level report to their local/business unit manager. 

Procurement personnel report to the local level manager with minor accountability for performance at the corporate level.

Personnel performing procurement activities at all organisational levels report ultimately to the same C-Level executive; all personnel have the same accountability standards.

Skills defined centrally for the corporate team; skills defined at the local/business unit level, but not fully consistent throughout the organisation.

Skills defined centrally with some measurement and tracking on a need-only basis.

Skills defined at the local/business unit level.

Skills defined centrally and are consistent for the entire procurement organisation, both at corporate and local/business unit levels.

Skills are not regularly tracked but job-related skills are evaluated, and best approach planned periodically.

There is a high level/basic approach to training and skills management but no continuous learning and improvement plan.

Focus exists on different types of skills (technical, soft, people management, etc.). There is a plan to track skill levels, identify improvement areas and implement appropriately to upskill.

All types of required skills are considered and there is a clear plan to assess, train and manage a continuous learning plan for the procurement team. Procurement upskilling extends to relevant business stakeholders and is appropriately measured and managed.

Advanced and differentiated category sourcing strategies are in place for all major categories of indirect direct and capital spend (based on comprehensive portfolio analysis). Category strategies are communicated within procurement and to all key business stakeholders.

Category sourcing strategies are in place for most areas of major direct spend. Category strategies tend to be owned by and understood in procurement but understanding of stakeholders outside procurement is inconsistent.

Category sourcing strategies (owned by procurement) are in place only for a small minority of direct and indirect spend.  Strategies are infrequently revistied and there is limited evidence of these shaping the way procurement manages its day-to-day activity.

No standard strategic sourcing process defined by procurement. Sourcing options are reviewed reactively by the procurement function, usually when problems occur within the supply base.

Some efforts have been made to define a standard strategic sourcing process but there is little evidence that this is being regularly used by procurement. Sourcing options are developed regularly and transition process to new suppliers is managed reasonably well.

A standard strategic sourcing process is consistently applied across procurement. Sourcing is a consistent core competency throughout procurement and the category management approach is fully understood and embraced.

A standard strategic sourcing process has been defined but application is inconsistent. There are regular and proactive reviews of sourcing options within the procurement team but little interaction with other departments.

Procurement is consistently involved at the earliest stage of needs definition with opportunity to influence specification and drive standardisation as appropriate. Full range of opportunities are exploited in sourcing, including supply base and demand management, supply chain improvements, lifecycle and total acquisition cost savings.

Supplier selection process is defined but not formalised or consistently applied. Procurement often are not involved or involved too late in the process.

Procurement is often but not always involved at the earliest stage of product/service development and design. Where involved, procurement has the opportunity to influence specification design, drive standardisation and advise on sourcing strategy and contracting approach.

Procurement can point to examples where they have successfully demonstrated an ability to apply wider value levers beyond competitive tender. However, these examples are rare, and most business stakeholders see procurement's role as limited.

Fully defined multi-factor supplier selection framework extensively and consistently applied. Total cost of ownership (TCO) is consistently used as the basis for supplier selection.

A defined supplier selection process is embedded in procurement procedures. Selection tends to be based on an evaluation of quality and full acquisition and ownership costs.

Supplier performance management process in place with links to SRM strategy. SRM strategy includes clearly defined relationship types linked to differentiated objectives, governance arrangements, KPIs and continuous development plans. Basic performance data captured for key contracts and used for regular reviews.

Structured supplier performance management process in place with differentiated levels of activity based on segmentation of suppliers (aligned with SRM strategy). Summary level performance data is accessible to relevant stakeholders and to key suppliers.

Supplier performance management guidelines have been defined and a light touch SRM strategy exists that includes a view of different relationship types. Processes, objectives, governance arrangements, KPIs and continuous development requirements are only partially defined and there is infrequent collection of performance data that requires manual data collection and manipulation. 

Value delivered through supplier performance management (including SRM) measured, reported and recognised by the business. Quantitative data available as the basis for ongoing investment in SRM strategy.

A business case has been made for supplier performance management (including SRM) but using soft benefits. There is a lack of hard data to demonstrate the value delivered by SRM.

Basic contract management processes are documented and in place supported by a formal contract management structure and contracting models. Processes are not fully integrated with SRM and sourcing. Contract management is performed by business managers with very limited procurement involvement.

Formal contract management framework integrated with SRM and sourcing is in place. Contract service delivery, relationship, administration and risk management for all relevant suppliers is managed professionally by contract managers in procurement or with procurement support.

Formal contract management framework integrated with the sourcing strategy is in place. Contract management tends to operate independent of procurement or with limited procurement support.

Detailed clarity between operational and commercial contract management and how these need to be executed. Business/operations and procurement work hand in hand to ensure relevant contract management needs are executed well and with demonstrable value.

Clarity of operational and commercial contract management requirements and related execution needs. Procurement is proactive in approaching the business and operations to ensure well-managed commercial implications in case of contract issues.

Operational contract management is executed reasonably well. Procurement is involved when operational issues lead into commercial issues. There is limited separation of the two types of contract management and related roles and responsibilities.

Visibility into organisation-wide spending, compliance and performance measures both at the aggregate and local levels; business units and local plants/offices can measure themselves against other business units and local plants/offices.

Visibility into organisation-wide spending, compliance and performance measures mainly at the aggregate level.

There is a formal set up to engage the business in procurement activity. Procurement try and engage with the business at early idea stage and then at specific points during the sourcing and contracting process.

There is a formal set-up for business and procurement engagement. Business partnering is embedded in the ways of working and this is measured and reported on regularly.

Processes and policies are defined centrally, communicated to the organisation with local/business unit level compliance.

Processes and policies are defined centrally, communicated across the organisation with local/business unit level compliance; ability to tailor policies to local/business unit level.

Defined processes and policies exist with good central understanding and execution of the policies/procedures. There is limited understanding and execution at the business unit/local levels.

Full understanding and compliant execution of well defined policies/procedures across the organisation.

The majority of the organisation understands and executes compliantly the policies/procedures that are well-defined.

Governance clearly defined and very well executed for all procurement processes.

Basic governance framework around P2P process but it is not effective as there is little evidence of constructive collaboration between finance and procurement.

There is a solid governance framework in place for most of the procurement processes (e.g. purchase to pay, sourcing, supplier performance management, metrics and reporting, change management and business partnering).

Basic governance framework for purchase to pay in place and put in practice. There are plans to develop a standard governance framework around remaining processes (e.g. sourcing, supplier performance management, metrics and reporting, change management and business partnering).

Process compliance is controlled through internal (audits) and external controls (no purchase order, no pay policies). Effectiveness of actions taken jointly monitored by procurement and the business.

Process compliance is controlled through internal (audits) and external controls (no purchase order, no pay policies). Non-compliance is limited.

Strategic sourcing and high-level contract management are facilitated by systems.

Spend analytics, strategic sourcing, contract management, supplier performance and relationship management, procurement pipeline/programme management, benefits tracking, procurement performance management and all other aspects are well-enabled with best practice systems in place and are fully fit for purpose.

Spend analytics, strategic sourcing, contract management, supplier performance management (including SRM) are all well-enabled through good systems and tools.

Spend analytics, strategic sourcing, contract management are well-enabled with the right tools and systems and place. There is good adoption and value-add from these tools.

Available systems and tools are used by some key users inside the procurement function. Knowledge around the tools is not widespread around the procurement function.

Procurement tools and systems are fully integrated in the way of working of all the stakeholders collaborating with suppliers and procurement. There is frequent measurement of value driven and delivered by procurement systems and there is constant benchmarking to ensure leading practice set-up.

There are no formal systems and tools and a lot of documentation is either paper or basic electronic format based (Word, PDF, PowerPoint etc.).

Intuitive training and documentation regarding procurement systems and tools is available, enabling systems to be widely used by the procurement function.

In addition to the option above, some key business stakeholders from other business units use available systems when they interact with procurement. There is periodic review and measurement of the value of the system's usage and effectiveness.

Organisation is a leader in sustainability considerations and regularly advises others in embedding sustainable practices.

Sustainability considerations are embedded in existing procurement policies or as stand-alone policies, all material sustainability risks/opportunities are considered. There is high focus on driving value from sustainability activities.

Risk management guidelines include a number of sustainability risks. Risk logs and plans are sometimes created to mitigate sustainability risks with limited evidence of consistent action.

Some sustainability risks e.g. water scarcity, climate change, considered but on an ad hoc basis and in response to immediate threats. No formal process in place for managing sustainability risks.

Clear sustainability risk assessment processes in place. Proactive and regular monitoring of risks in place. The plan identifies ways of working with preferred suppliers to mitigate sustainability risks to supply.

An approach to manage sustainability risks which lays out procurement responsibilities has been defined for procurement. Extent of follow-through on risk plans varies from category to category.