1 Define Business Need 2 Develop Procurement Strategy

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration

1. Define Business Need 1. 1 Identify Business Requirement 1. 2 Knowledge Capture 1. 3 Stakeholder Consultation 1. 4 Risk Assessment 1. 5 Scope and Communication 2. Develop Procurement Strategy Objectives 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 1. Capture the business requirements 2. Obtain full stakeholder buy in to any resulting plans and timelines What you need before you start 1. Key Contact Details 2. Business Requirements Deliverables 1. Formal Business Requirement statement 2. Confirmed buy-in. 3. Budget Estimate

1. Define Business Need 1. 1 Identify Business Requirement 1. 2 Knowledge Capture 1. 3 Stakeholder Consultation 1. 4 Risk Assessment 1. 5 Scope and Communication 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 1. 1 Identify Business Requirement Ensure that it is the business requirement that is captured and not the anticipated solution to the requirement. e. g. When the business requirement is expressed like this: “We need a software package to deliver presentations on the intranet”, the business requirement is to be able to deliver presentations on the intranet. The software package is a potential solution. It may be that outsourcing the work is more cost effective than buying software, support and training to use it. Challenge the business in terms of how requirement might best be delivered. Again, make sure you and your stakeholders know the difference between the requirement and the solution. Once you establish the difference it is more straight forward to challenge the preconceived ideas about how best to deliver a solution. Timescale – be realistic and recognise that timing may be a critical component of the business requirement. If the solution is needed yesterday, a quick solution might be the most pragmatic – even if it’s not the most cost effective. But beware – the need for speed is often over emphasised. Ensure that all stakeholders are aware of the risk to cost and quality of solution by prioritising speed of delivery. Make sure there is not already a solution in place. Another part of the business may have already dealt with this business problem.

1. Define Business Need 1. 1 Identify Business Requirement 1. 2 Knowledge Capture 1. 3 Stakeholder Consultation 1. 4 Risk Assessment 1. 5 Scope and Communication 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 1. 2 Knowledge Capture Perform a thorough fact-find. Understand the current situation and the problem that requires a solution. Get beneath the skin of the issues and understand the wider implications. Without gathering solutions, gather a set of needs (SPIN – Solution, Problem, Implication, Need) Identify any initial risks to the procurement process. Examples of common risks to a procurement project include: falling foul of IT security policy; failure to get budget sign off; failure to meet implementation deadline; failure to get project sponsorship.

1. Define Business Need 1. 1 Identify Business Requirement 1. 2 Knowledge Capture 1. 3 Stakeholder Consultation 1. 4 Risk Assessment 1. 5 Scope and Communication 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 1. 3 Stakeholder Consultation Identify all of the relevant stakeholders who have an interest in the business requirement. This will include budget holders as well as others on whom a solution is dependent e. g. IT security and ensure that input from all correct areas is received Identify what roles and responsibilities each stakeholder has and ensure that their agreement is obtained and that commitment is gained from all those stakeholders to drive the project towards to a successful result. Key stakeholders to identify are: Sponsor (person who can ensure that the requirement is agreed, resources are made available and a solution approved), procurement team (the people who will act on a day to day basis to drive the project forward) and a budget holder (the person who can make appropriate funds available).

1. Define Business Need 1. 1 Identify Business Requirement 1. 2 Knowledge Capture 1. 3 Stakeholder Consultation 1. 4 Risk Assessment 1. 5 Scope and Communication 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 1. 4 Risk Assessment Assess the initial risk (high level), anything that may get in the way of a successful conclusion to the procurement activity Pay particular attention to any health & safety issues associated with the procurement activity or the solution. Also pay particular attention to environmental or sustainability issues as well as ethical and international sourcing issues

1. Define Business Need 1. 1 Identify Business Requirement 1. 2 Knowledge Capture 1. 3 Stakeholder Consultation 1. 4 Risk Assessment 1. 5 Scope and Communication 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 1. 5 Scope and Communication Confirm the scope of the procurement exercise. In which businesses/regions will it cover. What is the budget likely to be and what impact if any, will that have on scope. What are the quality constraints? Communicate and clarify the business requirement across all stakeholders

1. Define Business Need 2. Develop Procurement Strategy 2. 1 Team Kick Off 2. 2 Market Research 2. 3 Define Success 2. 4 Agree Strategy Objectives What you need before you start Deliverables 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 1. Agree Procurement Approach and timescales 2. Evaluate current environment and decide on the procurement process 1. Formal Business requirement statement 2. Resources identified and committed 3. Buy-in obtained from all stakeholders 1. Procurement Plan 2. Estimated budget 3. Sign off on estimated budget

1. Define Business Need 2. Develop Procurement Strategy 2. 1 Team Kick Off 2. 2 Market Research 2. 3 Define Success 2. 4 Agree Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 2. 1 Team Kick Off This is an opportunity to bring the team together to gain mutual understanding & buy-in to project objectives, roles, responsibilities & actions. Bear in mind that the scale of this event depends on the scale of the procurement activity. It could range from as trivial as a quick chat over a coffee to an off-site conference.

1. Define Business Need 2. Develop Procurement Strategy 2. 1 Team Kick Off 2. 2 Market Research 2. 3 Define Success 2. 4 Agree Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 2. 2 Market Research Gather as much information as possible in order to establish a range of approaches, products and services that will meet the business need. Identify what traditional and innovative solutions may be available. Use as many sources of information as you have access to including the internet and the existing knowledge from stakeholders

1. Define Business Need 2. Develop Procurement Strategy 2. 1 Team Kick Off 2. 2 Market Research 2. 3 Define Success 2. 4 Agree Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 2. 3 Define Success Define the criteria by which a successful solution will be judged. Define the minimum quality criteria, the cost range and the deadline for delivery.

1. Define Business Need 2. Develop Procurement Strategy 2. 1 Team Kick Off 2. 2 Market Research 2. 4 Define Success 2. 4 Agree Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 2. 4 Agree Strategy Compile market research and make recommendations as the proposed strategy. e. g. outsourced solution vs. in-house developed and managed. Include within the strategy, some thinking about the purchase to pay processes to identify potential problems or opportunities for efficiencies Collaborate with stakeholders to ensure that they all have input to the procurement approach and strategy. Obtain formal agreement to the strategy before moving the process forward

1. Define Business Need 2. Develop Procurement Strategy Objectives What you need before you start Deliverables 3. Supplier Evaluation & Selection 3. 1 Develop Pre-qual Strategy 3. 2 Score, Filter & Notify 3. 3 Develop & Launch Tender 3. 4 Assess & Filter 4. Negotiation and Award of Contract 5. Induction & Integration 1. To select the right suppliers and value proposition to be taken forward to final negotiation. 1. Procurement Strategy 2. Market Research 1. Shortlist of suppliers 2. An agreed procurement approach with shortlisted suppliers

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 3. 1 Develop Pre-qual Strategy 3. 2 Score, Filter & Notify 3. 3 Develop & Launch Tender 3. 4 Assess & Filter 4. Negotiation and Award of Contract 5. Induction & Integration 3. 1 Develop Pre-qualification Strategy It is important that the number of suppliers taken forward to negotiation is a small as possible therefore it is important to develop some strict criteria that must be met in order to eliminate suppliers which would ultimately not succeed. Agree and document the key criteria by which the supplier will be selected and develop a qualification questionnaire to be completed by responding suppliers. Develop a scoring mechanism and apply weighting to each criteria to ensure that priorities are addressed. Don’t be too rigid at this stage. It may be that new information is learned as suppliers submit responses that will change your view of the criteria.

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 3. 1 Develop Pre-qual Strategy 3. 2 Score, Filter & Notify 3. 3 Develop & Launch Tender 3. 4 Assess & Filter 4. Negotiation and Award of Contract 5. Induction & Integration 3. 2 Score, Filter and Notify Based on suppliers responses, score each response against the weighted selection criteria Confer with stakeholders and agree which supplier to shortlist based on preferred commercial model and pricing principles as well as the weighted selection criteria scores Document which suppliers are unsuccessful including rationale for non-selection and notify successful and unsuccessful suppliers

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 3. 1 Develop Pre-qual Strategy 3. 2 Score, Filter & Notify 3. 3 Develop & Launch Tender 3. 4 Assess & Filter 4. Negotiation and Award of Contract 5. Induction & Integration 3. 3 Develop and Launch Tender Amend the tender based on lessons learned from responses and prepare the relevant documents to be issued to shortlisted suppliers. Develop a set of weighted criteria by which tender responses will be assessed and agree this, together with the rest of the tender, with stakeholders Prepare all relevant communication to ensure that suppliers are aware of what is expected of them and issue all tender documentation to suppliers. Consider contractual terms and conditions as well as day to day operational considerations. Matter such as health and safety, invoicing and payment arrangements should all be clarified at this stage. For goods and services that will be ordered regularly, ensure that the internal procedures for placing and approving orders are understood and documented as this may have an impact on the way the supplier is expected to interact with the business

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 5. Induction & Integration 3. 1 Develop Pre-qual Strategy 3. 2 Score, Filter & Notify 3. 4 Assess and Filter 3. 3 Develop & Launch Tender 3. 4 Assess & Filter The purpose of this stage is to assess the capability of the suppliers that have responded to tender and to ascertain if and how they can fulfil the requirements of the tender. As they are received, score the responses against agreed weighted criteria. If possible, filter further to eliminate weaker suppliers.

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 4. 1 Prepare Negotiation Strategy 4. 2 P 2 P Design 4. 3 Conduct Negotiations 4. 4 4. 5 Objectives What you need before you start Deliverables 5. Induction & Integration Finalise Contract Award 1. Complete Negotiations and select best supplier 2. Award contract 1. Filtered List of Suppliers 2. Knowledge of Purchase to Pay process stakeholders 1. Agreed Purchase to Pay processes and KPIs 2. Signed Contract

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. 1 Prepare Negotiation Strategy Prepare for the negotiation with short listed suppliers. Decide on the approach (face to face conversations, a collective supplier conference and auction etc. ) Based on the submissions , the pricing principles, the commercial model, services level and the contract terms and conditions may have been amended. Finalise the approach to these and ensure that there is legal support available if necessary 4. Negotiation and Award of Contract 4. 1 Prepare Negotiation Strategy 4. 2 P 2 P Design 4. 3 Conduct Negotiations 4. 4 4. 5 Finalise Contract Award 5. Induction & Integration

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. 2 Purchase to Pay process design Explore the process by which goods and services will be purchased. Look for opportunities to reduce business risk reduce process time and effort and develop efficiencies. Will there be a need for a requisition and approval process. Will there be purchase orders and how will they be placed? How will payment be made? Against a schedule, in response to invoices? Will invoices be paper or electronic. Will invoices be sent directly to AP or will the business need to see them first? How will segregation of responsibilities be employed to minimise risk? Will the supplier need to put in place new or revised processes? Will there be training required either internally or within the supplier? Document the Purchase to Pay processes including details of any authorisations that will be required. Identify and agree relevant Key Performance Indicators 4. Negotiation and Award of Contract 4. 1 Prepare Negotiation Strategy 4. 2 P 2 P Design 4. 3 Conduct Negotiations 4. 4 4. 5 Finalise Contract Award 5. Induction & Integration

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. 3 Conduct Negotiations There are two primary goals in the negotiation: 1. To negotiate prices that deliver lowest total cost of ownership while maintaining the suppliers’ commercial viability. 2. Minimise/transfer risk: Commercial, reputational health and safety etc. 4. Negotiation and Award of Contract 4. 1 Prepare Negotiation Strategy 4. 2 P 2 P Design 4. 3 Conduct Negotiations 4. 4 4. 5 Finalise Contract Award 5. Induction & Integration

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 4. 1 Prepare Negotiation Strategy 4. 2 P 2 P Design 4. 3 Conduct Negotiations 4. 4 Finalise Contract 4. 4 Finalise commercial agreement and contractual terms with the supplier in preparation for award and agree achieved savings with budget holders and log them on the savings register 4. 5 Finalise Contract Award 5. Induction & Integration

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. 5 Award Contract Communicate the award of contract to successful as well as the unsuccessful suppliers. Communicate also to relevant internal audiences. Ensure the contract is in place prior to commencement of the service or product being purchased Be prepared to provide feedback to the suppliers about their performance throughout the process. Apart from being a professional courtesy it can help maintain a positive relationship with the unsuccessful suppliers 4. Negotiation and Award of Contract 4. 1 Prepare Negotiation Strategy 4. 2 P 2 P Design 4. 3 Conduct Negotiations 4. 4 4. 5 Finalise Contract Award 5. Induction & Integration

1. Define Business Need Objectives 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 5. Induction & Integration 4. 1 Launch Supplier 4. 2 Post Procurement Review 4. 3 Continuous Integration 1. To ensure that the supplier is fully prepared to deliver all aspects of the contract 2. To ensure that all parties are familiar with agreed P 2 Ppolicies and procedures 3. To initiate the relevant performance measures and reporting What you need before you start Deliverables 4. Negotiation and Award of Contract 1. Signed contract in place 2. P 2 P policies and processes agreed 3. SLAs and KPIs agreed and understood Business Requirement met

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 4. 1 Launch Supplier Ensure stakeholders are aware of key changes to the agreement and processes Develop and agree communication plan. This can range from distributing an email to interested parties to a full scale event to launch a major supplier Initiate training programmes internally and ensure that supplier training is underway 5. Induction & Integration 4. 1 Launch Supplier 4. 2 Post Procurement Review 4. 3 Continuous Integration

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 4. 2 Post Procurement Review Monitor and review P 2 P process to identify weaknesses and learnings Document learning points and recommend amendments 5. Induction & Integration 4. 1 Launch Supplier 4. 2 Post Procurement Review 4. 3 Continuous Integration

1. Define Business Need 2. Develop Procurement Strategy 3. Supplier Evaluation & Selection 4. Negotiation and Award of Contract 4. 3 Continuous Integration Initiate performance monitoring and amend processes as improvements are identified 5. Induction & Integration 4. 1 Launch Supplier 4. 2 Post Procurement Review 4. 3 Continuous Integration