Procurement Reporting
Procurement Reporting is the comprehensive analysis of procurement activities, illuminating the overall effectiveness and efficiency. It encompasses the capability to interpret, manage and present relevant data in a meaningful way. This informs strategic decision-making, boosts operational efficiency, and contributes to risk mitigation in vital procurement processes.
Level 1: Emerging
At a foundational level you are able to gather basic procurement data and produce simple reports using set templates or guidelines. You understand which information is important to collect and can clearly present it to your team. Your work helps others see procurement activity at a glance and supports straightforward decisions.
Level 2: Proficient
At a developing level you are able to gather and organize basic procurement data and use simple reporting tools to summarise key findings. You follow set guidelines to present information clearly, supporting routine decision-making and highlighting obvious issues. Your reports help your team understand core procurement activities and identify areas needing further attention.
Level 3: Advanced
At a proficient level you are able to gather, analyze and interpret procurement data to create clear, accurate reports for your team or stakeholders. You understand how to use this information to highlight trends, measure performance, and support procurement decisions. Your reporting directly improves transparency and helps drive better outcomes for your organization.
Tendering
Tendering is the strategic procurement process encompassing invitation, evaluation and awarding of bids. A key capability, it requires knowledge of procurement laws, effective communication skills and the ability to critically assess suppliers' offers. The impact, when performed successfully, ensures value for money, mitigates risks, and fosters healthy competition.
Level 1: Emerging
At a foundational level you are supporting the tendering process by assisting with preparing documents and managing basic communications with suppliers. You follow clear instructions and learn the importance of fairness and accuracy in gathering information. Your work helps ensure compliance and supports your team to achieve transparent and well-documented procurement outcomes.
Level 2: Proficient
At a developing level you are supporting the tendering process by preparing documentation, assisting with supplier communications, and following established procedures. You work under guidance to help evaluate bids and record decisions accurately. Your attention to detail helps ensure fairness and transparency, while you start to recognize how good tendering delivers value for the organization.
Level 3: Advanced
At a proficient level you are able to independently manage the full tendering process, from preparing clear documentation to evaluating bids with fairness and accuracy. You apply your knowledge of procurement policies and engage suppliers effectively to achieve the best outcomes. Your actions ensure transparency, promote competition, and deliver value for your organization.
Supplier Relationship Management
Supplier Relationship Management is a pivotal procurement capability. It encompasses the skills and knowledge necessary to establish, nurture, and monitor relationships with providers. Effective Supplier Relationship Management ensures productive performance, reliable supply chains, and enhances negotiation leverage. Consequently, it bolsters the organization's strategic goals and savings targets.
Level 1: Emerging
At a foundational level you are learning to follow established processes for working with suppliers and supporting simple supplier interactions. You ask questions and seek advice to understand how supplier relationships help the procurement team achieve its goals. Your reliable support helps maintain accurate records and builds trust with colleagues and suppliers alike.
Level 2: Proficient
At a developing level you are building your understanding of how to work effectively with suppliers in line with procurement processes. You seek advice when handling supplier issues and contribute to routine supplier meetings or performance reviews. Your efforts help maintain reliable day-to-day supplier relationships, supporting team objectives and consistent supply.
Level 3: Advanced
At a proficient level you are able to manage supplier relationships with consistency, professionalism, and a focus on mutually beneficial outcomes. You work closely with key suppliers to resolve issues, track performance, and identify opportunities for process or cost improvements. Your actions help strengthen supply reliability and support your team in meeting procurement goals.
Supplier Standard Performance Monitoring
Supplier Standard Performance Monitoring is the systematic assessment of a supplier's compliance with agreed upon standards and delivery terms. In the realm of procurement, it involves tracking and evaluating suppliers based on quality, pricing, delivery, service, and compliance. Effective monitoring optimizes value, minimizes risk, and ensures operational excellence in procurement functions.
Level 1: Emerging
At a foundational level you are learning to check if suppliers meet basic standards and agreed delivery terms in your procurement activities. You follow clear processes, use available tools, and seek guidance when needed to help track supplier performance. Your careful work helps your team maintain reliable supply and catch small issues early.
Level 2: Proficient
At a developing level you are learning to track and record supplier performance against agreed standards, often with guidance from others. You help collect basic data on quality, timeliness, and service for suppliers in your area. This supports better supplier relationships and helps reduce delivery risks for your team.
Level 3: Advanced
At a proficient level you are able to systematically track supplier performance against agreed standards in quality, delivery, pricing, and service. You use data and feedback to identify trends, promptly address issues, and support suppliers in meeting expectations. Your approach ensures suppliers consistently add value and reduce risk to procurement outcomes.
Supplier Evaluation
Supplier Evaluation is the systematic assessment of a supplier's ability to meet business and procurement objectives. This involves evaluating factors such as pricing, quality, delivery performance, and financial stability. A robust evaluation process is essential in safeguarding supply chain integrity, ensuring cost-effectiveness, and minimizing procurement risks.
Level 1: Emerging
At a foundational level you are learning to identify basic supplier information and understand why evaluating suppliers matters in procurement. You follow simple checklists or instructions to collect details like pricing and quality, but rely on guidance when making assessments. Your work helps ensure procurement decisions are informed, supporting safe and cost-effective supply choices.
Level 2: Proficient
At a developing level you are able to assist in gathering and organizing supplier information for evaluation, following established processes and checklists. You contribute to reviews of supplier performance, quality, and reliability, seeking guidance when required. Your input helps your team make informed decisions and supports the integrity of procurement activities.
Level 3: Advanced
At a proficient level you are able to independently assess suppliers using established criteria and tools, considering factors such as pricing, quality, delivery, and financial stability. You apply consistent judgment to make informed recommendations that align with procurement objectives. Your thorough evaluations help reduce risk and improve supplier relationships across the organization.
Spend Analysis
Spend Analysis is a critical procurement capability that involves assessing and managing company expenditure. This includes the ability to identify buying trends, evaluate supplier performance, and uncover saving opportunities. Effective Spend Analysis improves cost efficiency and supports informed decision-making in procurement planning.
Level 1: Emerging
At a foundational level you are able to gather basic spend data and follow set processes to help organize procurement information. You support your team by accurately recording expenditure and assisting with simple spend reports. Your work helps ensure reliable data that others use to spot trends and support informed planning.
Level 2: Proficient
At a developing level you are starting to gather and organize spend data to spot basic trends and patterns in procurement activities. You use simple tools to review supplier performance and highlight potential areas for cost savings. Your analysis supports routine purchasing decisions and helps your team make more informed choices.
Level 3: Advanced
At a proficient level you are able to independently analyze company spend data to spot patterns, assess supplier performance, and highlight areas for savings. You use these insights to guide procurement plans and improve value for money. Your work enables your team to make better-informed purchasing decisions that benefit the whole organization.
Sourcing Strategy
Sourcing Strategy is the tactical methodology procurement professionals utilise to secure the best possible suppliers and materials. It involves the execution of comprehensive market research, negotiation skills, and cost analysis. Excelling in sourcing strategy can lead to optimal supplier relationships, lower costs, and overall procurement efficiency.
Level 1: Emerging
At a foundational level you are learning how sourcing strategy supports procurement goals by following established processes and assisting with basic supplier research. You rely on guidance to help gather data, compare options, and record key information. Your accurate, attentive work helps your team make sound supplier decisions.
Level 2: Proficient
At a developing level you are learning to apply sourcing strategies by supporting basic market research and assisting in supplier selection. You follow established procedures and start to identify cost factors with guidance from more experienced colleagues. Your efforts help the team gather information and begin to build more effective supplier relationships.
Level 3: Advanced
At a proficient level you are able to develop and execute effective sourcing strategies by using thorough market research, negotiation, and cost analysis. You adapt your approach to different categories and supplier markets, ensuring value for money and reliable supply. Your actions help achieve stronger supplier relationships and greater procurement efficiency.
Purchasing
Purchasing is a pivotal function within the procurement process, requiring a deep understanding of buying goods or services effectively and efficiently. It necessitates knowledge of supplier markets, negotiation skills, and cost analysis, acting as an organizational gatekeeper. Mastery of purchasing ultimately provides strategic advantages, influencing all aspects of operational success.
Level 1: Emerging
At a foundational level you are able to follow standard procedures to support simple purchasing tasks, such as raising purchase orders or checking basic supplier information. You focus on accuracy and follow guidance from colleagues or supervisors to ensure purchases meet immediate needs. This helps build reliable processes and supports smoother operations for your team.
Level 2: Proficient
At a developing level you are beginning to support purchasing activities by following established processes and seeking advice when needed. You help gather information about suppliers and costs, contributing to informed buying decisions. Your careful approach supports your team in meeting basic procurement needs and helps ensure value for money.
Level 3: Advanced
At a proficient level you are able to manage end-to-end purchasing activities with minimal supervision, ensuring goods and services are acquired cost-effectively and in line with organizational needs. You use your knowledge of supplier markets and negotiation to secure value and minimize risks. Your actions help maintain strong supplier relationships and support reliable business operations.
Procurement Risk Management
Procurement Risk Management is the proactive assessment and mitigation of potential issues within procurement activities. It involves understanding all potential threats, developing robust strategies to manage them, and fostering a culture of risk awareness. The impact ensures the continuity of supply chains, aids compliant procurement practices and promotes cost-effectiveness.
Level 1: Emerging
At a foundational level you are aware that risks can affect procurement activities and you follow set procedures to flag and report concerns when asked. You understand why it is important to help spot early warning signs and support others in minimizing risks. Your actions help protect your team from simple mistakes and disruptions.
Level 2: Proficient
At a developing level you are able to recognize common risks in procurement activities and follow set procedures to manage them. You seek advice when unsure and support your team by reporting potential issues early. This helps maintain supply chain reliability and ensures your procurement actions meet compliance and cost expectations.
Level 3: Advanced
At a proficient level you are able to identify and assess risks across complex procurement activities, taking appropriate, timely action to reduce their impact. You develop and apply effective risk management plans, regularly reviewing them to address changes. Your approach helps ensure reliable supply, compliance with policies and better value for your organization.
Category Management
Category Management is a strategic approach in procurement, focused on sourcing products or services within specific categories to achieve optimum value. It involves analyzing market trends, supplier performance and spending patterns to inform purchasing decisions. Effective category management boosts procurement efficiency, leading to significant cost reductions and improved supplier relationships.'
Level 1: Emerging
At a foundational level you are beginning to recognize the importance of grouping similar goods or services in procurement to make smarter buying choices. You support simple category management activities by gathering basic data and following clear instructions. Your actions help your team organize purchases more efficiently and lay the groundwork for future savings.
Level 2: Proficient
At a developing level you are starting to apply basic category management principles to your procurement activities. You use available data to group similar goods or services and begin to consider supplier performance and market factors when making purchasing decisions. This helps you contribute to more consistent sourcing and better value for your team.
Level 3: Advanced
At a proficient level you are able to confidently manage procurement categories by using data and market insights to guide sourcing decisions. You analyze supplier performance and spending to recommend improvements or cost savings within specific categories. Your actions help achieve better value for your organization and support stronger supplier relationships.
Procurement Planning
Procurement Planning is the strategic process of identifying and sourcing goods or services required by an organization. This capability requires an understanding of market conditions, supplier relationships, and internal demand. Effective Procurement Planning can lead to cost savings, improved efficiency, and reduced risk.
Level 1: Emerging
At a foundational level you are learning to support procurement planning by gathering basic information on organizational needs and suppliers. You follow established processes and seek guidance when identifying goods or services required. Your contribution helps more experienced team members make informed decisions and ensures the planning process starts smoothly.
Level 2: Proficient
At a developing level you are beginning to support procurement planning activities by gathering basic information on goods or services needed. You help collect data on suppliers and market options, ensuring your work fits within team plans. Your efforts contribute to informed decisions and help reduce simple risks in purchasing.
Level 3: Advanced
At a proficient level you are able to develop detailed procurement plans that balance organizational needs with current market conditions. You work with stakeholders to forecast demand and select suitable sourcing options. Your approach results in cost-effective, timely procurement that supports the organization’s operational goals and manages risk.
Procurement Compliance
Procurement Compliance is the demonstrated ability to adhere to and uphold applicable laws, policies, regulations, and ethical standards in the procurement process. It involves knowledge of contract law, negotiation skills, and understanding of procurement ethics to ensure operations are within legal boundaries. Missteps can lead to significant reputational and financial risks for the company.
Level 1: Emerging
At a foundational level you are aware of the key laws, policies, and ethical standards that guide procurement activities. You follow set procedures and seek guidance when unsure, helping to ensure your actions support compliance and protect the organization from avoidable risks. Your attention to basics lays the groundwork for responsible procurement.
Level 2: Proficient
At a developing level you are learning to follow procurement policies, laws, and ethical standards in your work. You seek guidance when unsure and check your actions against set procedures to avoid mistakes. Your growing attention to compliance helps protect the organization from unnecessary risks and ensures fair, transparent dealings.
Level 3: Advanced
At a proficient level you are consistently applying procurement laws, policies, and ethical standards in all your purchasing activities. You confidently identify and address compliance risks, helping your team avoid costly errors. Your approach ensures procurement processes are transparent, fair, and protect the organization’s reputation.
Market Analysis
Market Analysis is the capability to assess and interpret market forces, trends and supplier dynamics related to procurement. This involves understanding of market behavior, competitor strategies and cost structures to increase purchasing effectiveness. An adept market analysis informs procurement strategies, maximizes competitive advantage and drives cost reductions.
Level 1: Emerging
At a foundational level you are learning how to gather basic information about suppliers, market trends, and pricing that affect procurement decisions. You rely on guidance to interpret market data and may use simple tools to support your analysis. Your developing understanding helps you contribute to informed purchasing choices and builds your confidence in market analysis.
Level 2: Proficient
At a developing level you are beginning to collect and interpret basic market data to support procurement decisions. You seek guidance to understand supplier dynamics, pricing trends and competitor activity within your category. Your market analysis helps you make more informed recommendations and start identifying opportunities to improve value for your organization.
Level 3: Advanced
At a proficient level you are able to gather and analyze a range of market data to inform procurement decisions and identify emerging risks or opportunities. You consider supplier dynamics, competitor actions and market trends when developing sourcing strategies. Your insights help your team secure better value and adapt to changing conditions in the market.
Ethical Procurement
Ethical Procurement is the application of ethical principles into procurement processes. It involves making decisions that maximize value and benefits, not only economically, but socially and environmentally too. Emphasizing transparent, responsible sourcing, its impact results in sustainable supply chains and positive organizational reputation.
Level 1: Emerging
At a foundational level you are aware of ethical principles in procurement and follow guidance to make fair, transparent decisions. You understand the basics of responsible sourcing and can recognize situations where ethical standards apply. Your actions help support a positive reputation for your team and ensure procurement processes are trustworthy.
Level 2: Proficient
At a developing level you are learning to recognize and apply ethical standards in your procurement activities. You seek guidance when facing ethical dilemmas and follow established processes to ensure responsible sourcing. By doing so, you help support fair, transparent practices and contribute to building trust in your organization’s supply chain.
Level 3: Advanced
At a proficient level you are confidently applying ethical principles in procurement decisions, ensuring transparency and fairness across sourcing and selection processes. You embed social and environmental considerations into your work and challenge practices that fall short. Your actions help strengthen supplier relationships and protect your organization’s reputation.
Cost Analysis
Cost Analysis is the critical assessment of cost data, relating to procurement activities. It involves analyzing actual cost expenditure against planned budgets, highlighting any discrepancies and potential savings. This capability contributes to informed decision making, thereby promoting cost-effectiveness and efficiency in procurement processes.
Level 1: Emerging
At a foundational level you are able to identify basic cost elements and compare actual spending to planned budgets within procurement activities. You follow set processes to help spot inconsistencies or overspending. Your work supports more accurate cost tracking and helps your team make better financial decisions.
Level 2: Proficient
At a developing level you are able to review cost data from procurement activities and identify simple variances against approved budgets. You apply agreed processes to support cost analysis, often with supervision, and begin to suggest basic opportunities for cost savings. Your work helps strengthen cost awareness within your team and support more informed purchasing decisions.
Level 3: Advanced
At a proficient level you are able to independently analyze and compare actual costs with budget forecasts for procurement projects, identifying discrepancies and areas for savings. You use these insights to support recommendations and help your team make sound purchasing decisions. Your work directly improves cost-efficiency and helps keep spend on track.
Contract Negotiation
Contract Negotiation is a key procurement capability, demanding high-level skills in forming, reviewing, and approving contracts with suppliers. It delineates an expert understanding of agreement terms, transaction conditions, cost, and quality. Ultimately, effective Contract Negotiation drives optimal value, mitigates risk and sustains supplier relationships.
Level 1: Emerging
At a foundational level you are learning the basics of contract negotiation in procurement by supporting more experienced colleagues. You help prepare documents, gather information, and observe negotiations to understand key contract terms and risks. Your involvement builds your knowledge and lays the groundwork for more active participation in future negotiations.
Level 2: Proficient
At a developing level you are building confidence in supporting contract negotiations under guidance. You contribute to discussions about contract terms, help gather key information, and identify straightforward risks and opportunities. Your actions help ensure contracts meet basic requirements and support the wider procurement process effectively.
Level 3: Advanced
At a proficient level you are able to lead contract negotiations independently, applying a strong understanding of procurement requirements and supplier capabilities. You confidently shape agreement terms and resolve issues to secure favourable outcomes. Your approach consistently delivers value for your organization while protecting its interests and fostering positive supplier relationships.
Contract Management
Contract Management is the proficiency in handling contractual agreements in procurement effectively. This capability involves understanding and communicating requirements, enforcing compliance, and mitigating risk. The impact is potentially cost savings, enhanced supplier relationships, and reduced legal disputes.
Level 1: Emerging
At a foundational level you are aware of the basic purpose of contracts in procurement and follow set processes to support contract activities under supervision. You help gather and share key contract information and learn to recognize common risks. Your attention supports team compliance and helps build good supplier relationships.
Level 2: Proficient
At a developing level, you are learning to follow established contract management processes in procurement and support the administration of straightforward agreements. You seek guidance to interpret contract terms, document compliance, and highlight potential issues. This helps your team reduce risk and identify improvements in supplier relationships.
Level 3: Advanced
At a proficient level you are able to manage procurement contracts independently, ensuring terms are clear, requirements are met, and compliance is maintained. You resolve issues as they arise and work with suppliers to minimize risks and disputes. Your efforts lead to reliable supplier relationships, improved value for money, and fewer contract breaches.
Contract Development
Contract Development is the capacity to establish, negotiate and finalise procurement contracts. It encompasses understanding legal principles, industry standards, and supplier research. Effective execution of this capability validates a supplier’s ability to fulfill business requirements while mitigating legal and financial risk.
Level 1: Emerging
At a foundational level you are learning the basics of procurement contracts by supporting more experienced colleagues with document preparation and supplier research. You follow established processes to assist with contract development, ensuring accuracy and compliance. Your careful work helps reduce risk and contributes to meeting business needs.
Level 2: Proficient
At a developing level you are able to assist in drafting basic procurement contracts using standard templates and guidance. You support others in gathering supplier information and identifying key contract terms, learning to recognize common risks. This helps you build your knowledge of contract development and supports your team in reaching sound, low-risk agreements.
Level 3: Advanced
At a proficient level you are able to draft and negotiate procurement contracts that protect your organization’s interests and comply with relevant legal and policy requirements. You can seek and assess supplier information to shape fair and effective terms. Your contracts reduce risk, support business goals, and help build strong supplier relationships.
