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Weele's procurement process demystified
The world of strategic procurement is dynamic, innovative and constantly evolving. If you’ve ever wondered exactly what it means or how to control it, you’ve come to the right place. In this article, we demystify Weele’s famous procurement process and show why it is so essential for companies in every industry.
What is strategic purchasing?
The starting point of our story is understanding the basics. Strategic purchasing is not just buying something. It involves planning and implementing a long-term strategy aimed at optimizing resources, minimizing costs and ensuring quality. At Xentys, we have a team of experts dedicated to the nuances of this process.
“Procurement is not just a transaction, it’s a strategy.”
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Reduce Total Cost of Ownership (TCO) with the Kraljic Matrix
Weele's procurement process: an overview
The procurement process, as outlined by Arjan van Weele, a leading expert in the field, is a comprehensive roadmap. It starts with the definition of the need and moves on to supplier evaluation and contract management. A key component of his process is the Kraljic matrix, a tool that helps determine procurement strategy based on the complexity of the market and the importance of procurement.
- Need Definition: First and foremost, what do you want to buy? It is not just about a product or service, but the exact specifications, quality requirements and quantity.
- Market research: This is all about knowing the market. Who are the key players? What are the price trends? Our services at Xentys provide guidance at this critical stage.
- Supplier selection and evaluation: Not all suppliers are created equal. Choosing the right one is crucial to the success of the procurement process.
- Contract negotiation and management: Once selected, it’s time to get the best deal. And after closing the deal, it is crucial to manage the contract effectively.
This is just a glimpse of what the procurement process entails. In the next part of this article, we will take a closer look at the Kraljic matrix and how to apply it in your procurement strategy, as well as other nuances of tactical procurement. And for those looking to advance their careers in this exciting world, we always have procurement positions available waiting for the right candidate.
Keep reading, and let us guide you through the world of strategic purchasing!
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The Kraljic matrix: strategic procurement management
Diving further into the depths of Weele’s procurement process, we come across the famous Kraljic Matrix. This matrix, which we talked about a bit earlier, is indispensable for any buyer striving for strategic excellence.
What is the Kraljic Matrix
In simple terms, the Kraljic Matrix helps buyers categorize their organization’s procurement portfolio based on two main dimensions: impact on financial results and market complexity. The result is a four-quadrant model:
- Leverage products: These are products with high financial impact but low market complexity. In other words, big expenses, but there is plenty of supply and suppliers in the market.
- Strategic products: These have both a high financial impact and high market complexity. They are critical items, often unique and not easily replaced.
- Routine products: Products with low financial impact and low market complexity. They are readily available and are often purchased in bulk.
- Bottleneck products: These have low financial impact but high market complexity. They may pose a risk because of limited availability.
By using the Kraljic Matrix, buyers can develop strategies specific to each quadrant so that they can get the most value from their purchasing decisions.
Find a buyer through xentys
At xentys, your experienced procurement recruitment agency, we are happy to help you find the right professional for your procurement team. Send a message today and strengthen your purchasing department.
Applying the Kraljic Matrix
Now that you know the basics of the matrix, it is important to understand how to apply it in practice. At Xentys, we believe an understanding of this tool is key to strategic purchasing success.
“A strategic buyer uses tools like the Kraljic Matrix not only to analyze, but also to anticipate and innovate.”
- Leverage products: These are products with high financial impact but low market complexity. In other words, big expenses, but there is plenty of supply and suppliers in the market.
- Strategic products: These have both a high financial impact and high market complexity. They are critical items, often unique and not easily replaced.
- Routine products: Products with low financial impact and low market complexity. They are readily available and are often purchased in bulk.
- Bottleneck products: These have low financial impact but high market complexity. They may pose a risk because of limited availability.
Conclusion
Weele’s procurement process, with its deep insights and practical tools such as the Kraljic Matrix, is an essential guide for any buyer. Whether you are just starting your career or are a seasoned professional, there is always something new to learn and apply. At Xentys, we strive to guide and support buyers through every step of this fascinating process. And for those interested in deepening their careers, check out our procurement positions for the latest opportunities in the field.
Immerse yourself in the world of strategic sourcing and discover the opportunities it offers for growth, innovation and business success!
