𝙒𝙝𝙖𝙩 𝙖𝙢 𝙄 𝙩𝙖𝙡𝙠𝙞𝙣𝙜 𝙖𝙗𝙤𝙪𝙩? 🤔 ❓️
Procurement funnel is a graphical representation used by organizations to accurately determine Procurement’s contributions that go straight to the bottom line.
The funnel takes in the universe of total organizational spend and squeezes out the realized savings to the organizations.
Typically it looks like this👇 with different levels for a particular Financial Year
𝗧𝗼𝘁𝗮𝗹 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 𝗶𝗻𝗰𝘂𝗿𝗿𝗲𝗱 𝗯𝘆 𝗮 𝗖𝗼.
𝗦𝗽𝗲𝗻𝗱 𝘂𝗻𝗱𝗲𝗿 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 (𝗦𝗨𝗠)-a%
𝗔𝗱𝗱𝗿𝗲𝘀𝘀𝗲𝗱(𝗦𝗨𝗠)-b%
𝗡𝗲𝗴𝗼𝘁. 𝗦𝗮𝘃𝗶𝗻𝗴𝘀-c%
𝗥𝗲𝗮𝗹. 𝗦𝗮𝘃𝗶𝗻𝗴𝘀-d%
Note:
a+b+c+d= 100% ( Total Spend)
Negot.=Negotiated
Real.=Realized
𝗧𝗵𝗲 𝗦𝗽𝗲𝗻𝗱 𝘂𝗻𝗱𝗲𝗿 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗹𝗮𝘆𝗲𝗿 𝗶𝗰𝗶𝗻𝗴 𝗼𝗻 𝘁𝗼𝗽. 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗶𝗻𝗴 (𝗧𝗵𝗲 % 𝗼𝗳 ) 𝘀𝗽𝗲𝗻𝗱 𝘂𝗻𝗱𝗲𝗿 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗵𝗲𝗹𝗽𝘀 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝘁𝗵𝗲 𝗯𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲.
Mature Organizations can have upto 80% of total spend under management of Procurement.
📈𝗪𝗵𝗮𝘁 𝗶𝘀 𝘆𝗼𝘂𝗿 % 𝗼𝗳 𝗦𝗨𝗠?
📈𝗪𝗵𝗮𝘁 𝘀𝘁𝗲𝗽𝘀 𝗮𝗿𝗲 𝘆𝗼𝘂 𝘁𝗮𝗸𝗶𝗻𝗴 𝘁𝗼 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝘆𝗼𝘂𝗿 𝗦𝗨𝗠%
✳ Hey there, it’s Onkar Gill
🔺 A Supply Chain Expert!
✅ Let’s work together to take the procurement game to the next level!”
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