Annual strategy reviews are critical to strategic, tactical, and operational management. A Procurement strategy is a game plan or action plan by which a Procurement Function Mandate is implemented.
Moreover, a procurement strategy provides teams with methods and best practices supportive of the company’s primary concerns. It helps enhance profitability by reducing extra expenses and by, minimizing delays and speeding up the supply chain.
Your organization has a Procurement Strategy, right?
The table below provides some interesting information concerning the percentage of organizations that even have a Supply Chain Strategy.
Table 1, Supply Chain Strategy data
An annual strategy audit ensures the strategic planning process’s effective, efficient, and continuous improvement. The goal is to keep your strategic management system running and ensure accountability—keeping your organization on track yearly.
To conduct an annual strategy review:
- Step 1, Examine the Overview of the Strategic Plan
- Step 2, Examine the Strategic Goals and Key Success Metrics (KSM)
- Step 3, Determine performance gaps and root causes of gaps
- Step 4, Take Corrective Action to close Performance Gaps
Why conduct Annual Procurement Strategy reviews?
Because organizations can realize the following benefits from a robust Annual Procurement Strategy Review Process:
- It gives Procurement and Supply Chain leaders the capability to measure the degree of alignment of Supply Chain and Procurement Function to the Corporate Strategy
- Annual Procurement Strategy Review Processes maintain the focus and momentum of Critical Strategic Initiatives
- It provides vital information and feedback about the efficiency of the Strategy implementation processes
- An annual Procurement strategy review creates a platform for discussing how to improve Strategy Management Processes and determine the Root Causes for Deviations from the Plan.
- It keeps organizations on track year on year.
- Results of these initiatives set a foundation and platform to re-set and refine critical strategic initiatives.
- It facilitates a re-think of an organization’s core values, mission, and vision.
Below you will find an example Annual Strategy Review Table for the service management team of Cowley and Associates.
Table 2, Annual Strategy Review
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