Terje W.’s Post

Procurement minds are wired differently. This infographic shows the mind-map of a great procurement professional: # 1. Business Demand Signals ↳ “What is the business really trying to achieve?” Growth plans, cost pressure, risk appetite, innovation goals, timing constraints ↳ Great procurement people don’t react to requests, they read intent # 2. Specification & Requirement Filters ↳ “Is this actually needed?” Gold-plating, over-specification, legacy requirements, misaligned volumes ↳ Experts fix bad inputs before they become expensive contracts # 3. Commercial Bias Detection ↳ “Who benefits from this assumption?” Supplier bias, stakeholder bias, internal optimism, sunk-cost thinking ↳ They surface bias without creating friction # 4. Risk & Exposure Mapping ↳ “What could hurt the business later?” Contract lock-in, single-source risk, inflation exposure, regulatory and data risk ↳ Great procurement professionals maintain a live risk map in their head # 5. Stakeholder Orchestration ↳ “Who needs to be aligned before we move?” Finance on budget, legal on terms, operations on feasibility, leadership on trade-offs ↳ Procurement doesn’t approve decisions, it aligns them # 6. Scenario & Negotiation Thinking ↳ “What if volumes change, timelines slip, or priorities shift?” Walk-aways, options, break clauses, levers, concessions ↳ They never go to market with one path, they go with options # 7. Value & P&L Impact ↳ “How does this show up in the numbers?” Margin, cash flow, cost risk, value protection, opportunity cost ↳ Procurement professionals who think like P&L owners progress fastest Any others to add? If you want to build commercial judgement, influence, and confidence in Procurement, Join 23,000+ procurement pros get who get weekly insights from me FREE every week here 👉 https://procurebites.com/

One of the things I appreciate most about this mind map from Tom Mills is how clearly it captures the core questions Procurement brings to internal stakeholders. These questions are often misunderstood as roadblocks or barriers. But in reality—they’re the questions we ask so we can get to yes. Whether we work in public procurement or the private sector, our goals are remarkably similar. We want to position projects for success at every level of the organization. We want to strengthen outcomes, support teams, and ensure the bottom line reflects the effort invested. At the end of the day, we 👏 want 👏 to 👏 say 👏 YES.

PROCUREMENT DOES NOT FAIL IN ISOLATION. IT FAILS IN SILENCE. In many organizations, procurement is judged by outcomes it never fully controlled. Late deliveries, rushed purchases and inflated prices are blamed on procurement, while the real problem began much earlier with a lack of understanding across departments. When procurement is treated as an easy function, the organization quietly pays for that assumption again and again. The uncomfortable reality is this. Procurement timelines are often compressed not because markets are slow, but because requisitions are submitted late. When departments raise requests at the last minute, they do not create urgency. They eliminate choice. Supplier competition disappears, negotiation power weakens, and risk increases. What follows is not strategic procurement, but emergency buying disguised as efficiency. Many non procurement teams only see the final step of the process, which is raising a purchase order. What they do not see is market research, supplier evaluation, compliance checks, contract review, budget alignment and risk assessment. Procurement appears simple only when it is done properly and quietly. Its structure is mistaken for bureaucracy, and its discipline is mistaken for delay. This is why educating other departments about procurement is essential. When teams understand why lead times exist, how supplier markets operate, and what late requisitions truly cost the organization, behavior begins to change. Procurement shifts from being perceived as a bottleneck to being recognized as a planning partner. Education also restores accountability. A delayed project caused by a late requisition is not a procurement failure. It is a planning failure. Without shared understanding, procurement absorbs blame while inefficiencies repeat themselves. Most importantly, education builds respect. Procurement is no longer seen as simply buying. It is understood as a function that protects value before money ever leaves the organization. Procurement excellence cannot exist in isolation. It requires informed collaboration, not last minute requests. Until organizations invest in educating their people about procurement, they will continue to rush what should have been planned and criticize what should have been supported. #ProcurementIsNotMagic #StopBlamingProcurement #PlanningFailureNotProcurement #LateRequisitionsCostMoney #EmergencyBuyingIsNotStrategy #ProcurementIsRiskManagement

A strong reminder that procurement is often blamed for problems that actually start much earlier with poor planning. Late requisitions turn strategic sourcing into emergency buying, driving higher costs and risk. When teams understand how procurement really works, it shifts from being seen as a bottleneck to a true planning partner.

From procurement challenges to opportunities (a brief overview). In procurement, public and private sector organizations are facing more pressure than ever before. Below are some opportunities and challenges: + Cost Pressure - Value Creation Challenge: Rising prices, budget cuts, margin pressure Opportunity: Shift from “lowest price” to total cost of ownership (TCO) Renegotiate contracts using volume consolidation or longer-term commitments Co-innovate with suppliers to reduce waste, logistics, or specs + Supplier Risk - Stronger Partnerships Challenge: Supplier failures, delays, quality issues Opportunity: Segment suppliers (strategic vs transactional) Build strategic partnerships with key suppliers Introduce dual sourcing or local sourcing + Long Lead Times - Better Planning & Forecasting Challenge: Delays, stock outs, firefighting Opportunity: Collaborate early with internal stakeholders (S&OP, demand planning) Share forecasts with suppliers Use framework agreements or buffer strategies + Compliance & Regulation - Transparency & Trust Challenge: ESG rules, audits, compliance burden Opportunity: Use compliance to standardise processes Improve supplier data, traceability, and sustainability metrics Strengthen brand reputation and stakeholder trust +Manual Processes - Digital Transformation Challenge: Paperwork, slow approvals, errors Opportunity: Implement e-procurement, automation, or spend analytics Free up buyers’ time for strategic work Improve visibility and decision-making +Internal Resistance - Business Influence Challenge: Stakeholders bypass procurement or see it as a blocker Opportunity: Position procurement as a business partner Speak the language of cost, risk, and value Involve stakeholders early and co-own decisions + Market Volatility - Competitive Advantage Challenge: Price fluctuations, shortages, uncertainty Opportunity: Use market intelligence and should-cost models Lock prices early or use index-linked contracts Spot trends faster than competitors ---Public Procurement: From Constraints to Public Value Public procurement is rule-heavy, so the opportunity is trust, transparency, and impact. + Budget Constraints - Smarter Spending Challenge: Fixed budgets, cost scrutiny Opportunity: Focus on value for money, not lowest price Use life-cycle costing (maintenance, energy, disposal) Aggregate demand across departments + Strict Regulations - Transparency & Accountability Challenge: Complex laws, audits, compliance Opportunity: Standardise procedures and documentation Use digital procurement platforms Build public trust and reduce corruption risk + Limited Supplier Pool - SME & Local Development Challenge: Few qualified bidders Opportunity: Break contracts into lots Support SMEs and local suppliers Encourage innovation through competitive dialogue + Slow Processes - Better Planning Challenge: Long approval cycles Opportunity: Annual procurement planning Framework agreements Early market engagement.

Setting Procurement KPIs That Actually Matter In the previous posts, we spoke about spend analysis and procurement planning, understanding the data and deciding where procurement should focus. The next step is measurement. What gets measured gets managed. But in procurement, what we choose to measure determines how the function behaves. Too many KPIs create activity. The right KPIs create impact. This is how meaningful procurement KPIs should be defined. 1️⃣ Start With Outcomes, Not Metrics Before selecting KPIs, ask: 🔸️What is the business trying to achieve this year?cost, cash, resilience, or growth? 🔸️Where does leadership expect procurement to move the needle? 🔸️What behavior do we want to encourage? KPIs are not a reporting requirement. They are a signal to the organization about what truly matters. 2️⃣ KPIs That Drive Real Value Effective procurement teams focus on a small, balanced set: Financial impact ▫️Realized savings (not just negotiated) ▫️Cost avoidance ▫️Cash impact through payment terms Control & governance ▫️Spend under management ▫️Contract compliance ▫️Reduction in maverick spend Supplier performance & risk ▫️Supplier delivery and quality performance ▫️Dependency on critical suppliers ▫️Risk exposure in key categories Operational effectiveness ▫️Cycle time for sourcing and contracting ▫️Stakeholder satisfaction ▫️Procurement workload versus capacity These KPIs reflect outcomes, not effort. 3️⃣ What to Avoid Some metrics look good but add little value: 🔹️Counting sourcing events without impact 🔹️Inflated savings targets disconnected from reality 🔹️Too many KPIs that dilute accountability 🔹️Metrics that procurement controls, but the business does not support If a KPI cannot influence a decision, it does not belong on the dashboard. 4️⃣ How to Set KPIs the Right Way Strong KPI frameworks share common traits: ▫️Direct linkage to business priorities ▫️Clear ownership and accountability ▫️Simple definitions understood by all stakeholders ▫️Regular review and adjustment as conditions change Measurement should enable better decisions, not defensive reporting. Spend analysis shows where the money is. Planning decides where procurement will focus. KPIs determine whether procurement actually delivers. 💬 Which procurement KPI has made the biggest difference in your organization, and why? Share your perspective in the comments.

Procurement is still being boxed into the wrong question: “Do you have experience in our industry?” That question misunderstands what Procurement actually is. Procurement is not product expertise. It is a decision discipline. The real value of Procurement comes from skills that are transferable across industries: – structuring demand before it becomes cost – challenging specifications and scope – designing sourcing strategies, not just running tenders – managing risk, contracts, and stakeholder trade-offs Industry knowledge can be learned. Poor procurement judgment cannot be fixed by sector familiarity. When organizations insist that procurement professionals must come from the same domain, they reduce Procurement to a buying function—and lose the opportunity for better planning, stronger governance, and real operational impact. If Procurement were truly industry-specific, best practices would not travel. Yet they do—because Procurement is about how decisions are made, not what is being purchased. The question shouldn’t be: “Have you bought this before?” It should be: “Can you design a better way to buy it?” #ProcurementLeadership #StrategicProcurement #ChallengingTheStatusQuo #TransferableSkills #DecisionMaking #ValueCreation

Most discussions of strategic procurement emphasize its impact on growth, savings, risk mitigation, speed, and resilience. All of these aspects are significant. However, there is an often-overlooked layer. Procurement does not become strategic through what it influences or affects; it becomes strategic through the decisions it is authorized to make. Strategy is not articulated within job descriptions; instead, it resides within decision-making processes. Consider who decides: • Which suppliers will influence your cost structure over the next five years? • When to absorb risk versus transferring it. • Whether to prioritize speed, profit margin, or resilience. • When to commit capacity before the certainty of demand. • When to abandon a seemingly inexpensive deal that could entrap you in unfavorable future conditions. These issues are not operational inquiries; they are strategic commitments. Without actual decision-making authority, procurement may influence strategy but does not execute it. Many organizations encounter challenges by requesting procurement to be “strategic" without redesigning authority, governance, or accountability structures. Achieving strategic procurement is not accomplished merely through altering titles or dashboards. It is achieved by reconfiguring decision-making responsibilities to determine who decides what, when, and under what constraints. Ultimately, strategy is embedded in decisions, not in job descriptions.

Strategic Procurement Planning - The Key to Operational Success Effective procurement doesn't start when a requisition is submitted-it begins with robust planning and forecasting. Organizations that invest time in procurement planning reduce emergency purchases, negotiate better terms with suppliers, manage cash flow more effectively, and ultimately deliver programs more efficiently. Yet procurement planning often receives less attention than it deserves, leaving teams constantly operating in reactive mode. Strong procurement planning requires collaboration across the organization. Program teams need to share their implementation timelines, finance teams must provide budget insights, and procurement teams should contribute market intelligence about lead times and supplier capacity. When these perspectives come together early, organizations can identify potential bottlenecks, consolidate requirements for better pricing, schedule procurement activities to avoid peak periods, and build realistic timelines that account for actual market conditions. Digital tools are enhancing procurement planning capabilities through better visibility and data integration. Systems that connect program planning with procurement workflows, track historical procurement data, and flag potential supply chain risks enable more accurate forecasting. Organizations that make procurement planning a strategic priority rather than an administrative afterthought position themselves to respond to both anticipated needs and unexpected challenges more effectively. #SupplyChainForecasting #StrategicProcurement #ProcurementStrategy #OperationalExcellence #ProgramDelivery #NGOManagement #Procurement

Balancing Transparency and Speed in Public Procurement Public procurement is tricky. On one hand, transparency is non-negotiable—every rule, every process ensures fairness. On the other hand, speed is critical—projects stall, costs rise, and opportunities slip away if approvals drag on. So how do successful procurement teams strike the balance? Here’s what I’ve learned over decades in procurement and supply chain: 1. Clear tender scope upfront Most delays start with vague specs and incomplete BOQs. 2. Strong pre-bid discussions Good pre-bid meetings reduce assumptions, clarifications, and post-award disputes. 3. Digital workflows E-procurement doesn’t reduce transparency—it actually strengthens auditability while saving time. 4. Defined evaluation criteria When scoring is clear, decisions move faster and remain defensible. 5. Early capability screening Speed improves when unqualified bids are filtered out early. 6. Milestone-based approvals Breaking large decisions into smaller checkpoints keeps momentum without risk. Simple truth: Transparency and speed are not opposites. When procurement is structured well, one actually enables the other. Curious to hear from fellow procurement and supply chain professionals— what’s the biggest cause of delay you see in public procurement today? #Procurement #SupplyChain #PublicProcurement #Tendering #Governance #Efficiency #GeM