Indirect What are the major resistances you are finding for growth, profitability, cost and sustainability? Do you have any cost saving initiatives in place? What current technology solutions do you use for requisitioning, approval workflow, ordering, receiving and pricing compliance to terms in your contracts? Could add How quickly can you leverage automation to help optimise Procurement? What is the vision of your Procurement organization? What are your strategic objectives for the next 3 years? What are the Key KPI for Procurement Organization? Do you feel your spend management is under control? What areas of your source-to-pay process are you looking to improve? Do you have manual or paper based processes in Source-to-Pay? What is your ratio of spend categories (direct, indirect, services) by dollars spent annually? Is your Source-to-Pay process end-to-end? What are the top 3 challenges you are looking to solve? Do you have a process to engage and collaborate with your supply base? Who is responsible for sustainable efforts in your organization and who do they report too? I read in your 10K / saw on your web site / saw in a recent article that your company has a target / goal / strategy to _________. Since procurement is often where those ambitions are turned into action, what steps are you taking to meet that goal? How are you being measured? Direct How do you manage Direct Material Procurement? What systems do you have in place currently? Who is the key process owner? What is you spending and number of suppliers for Direct materials? How do perform demand planning for your direct materials and Maintenance, Repair and Operations MRO? Do you have a system in place to perform demand planning by year, months, weeks, and days? How do you share Demand planning schedule with Suppliers? What is your Inventory Carrying costs and write off? How do you manage Inventory (process & systems? DO you practice Min/Max Inventory for strategic Parts for your MRO, spares? If YES, do you share Min/Max with vendors for Supplier Managed Inventory (SMI) based replenishment (if Not, are you aware)? Do you perform Quality Inspection for goods/materials? Please explain the process Procurement SAP Ariba Discovery Questions Take advantage of these questions to drive your conversations with the customer.
Indirect Do you have visibility of the challenges on your horizon? And What business disrupters affect you the most? How do you measure procurement efficiency? How are you engaging with suppliers to move beyond a focus on cost and quality? How would you rate your visibility into total company spend? (accurate, real-time, detailed)? Do you have visibility of your top spend categories? Who are your top Suppliers and Which Departments are spending? How do you find new sources of supply? How long does it take to get a clear report with normalized data? How is your organization structured to create and manage sourcing initiatives? How many Sourcing events do you run annually and how do you measure the procurement savings achieved? How do you manage your current sourcing pipeline? Do you leverage eAuctions ? How do you manage Tail spend? Do you use Pcards ? How is your Supplier Management organization structured.? Who is the key process owner? How many suppliers do you have/manage? What are the top risk categories that concern you the most? - Regulatory and legal compliance- Environmental and social- Financial- Operational could replace with How is Procurement using external insights, tools and technology to drive better outcomes? Direct How is your company managing new product development sourcing processes? How do you involve suppliers in new product development processes to improve cost, quality, and sustainability of your products? Are you having problems integrating your sourcing tools to your product lifecycle management and ERP? How do your procurement teams plan for long-term product launches? Do you have challenges managing commodity index-based pricing? How do your procurement teams support annual cost reductions with price renegotiations? Is it a manual process? Do you have visibility into projected and historic product and direct materials costs? Is your procurement team supporting your company’s sustainability goals? How do staffing limitations impact how many sourcing events you can manage? How do you make sure that the pricing your teams negotiate in sourcing is realized in day-to-day procurement? How are you addressing manual data entry in your source-to-contract processes? Do you have MRP? How often is your Frequency of MRP, Release Generation? Do you use scheduling agreements? Are they with or without release documentation (LPA or LP doc type in SAP) What is your typical lead time for ordering materials from suppliers? How do supplier Perform Order Confirmation? Do they send you Advance Shipment Notice /DO? Do you have multi-tier orders? Do you have drop ship process? Please explain the process Procurement SAP Ariba Discovery Questions - Additional Questions for deeper conversation Take advantage of these questions to drive your conversations with the customer .
Indirect How do you track/obtain confirmations and ship notices from suppliers? How do you communicate forecasts, inventory etc. with suppliers? How many ERPs do you reconcile invoices for? Do you have metrics or commitments around how fast you pay your suppliers? What percentage of Supplier invoices are paid on time? What percentage of invoices require manual interventions? How many contracts are managed and how are they stored? What portion of contracts are not renewed or re-sourced on a timely basis? Do you have an existing online portal to send orders, receive invoices from suppliers How do you manage supplier certificates? Do you track key factors such as environmental, sustainability, legal, financial, human rights? Do you track adverse media around your supply base? Sustainability Discovery Questions: What KPI’s / requirements do your customers track of you? (How do they collect them?) What internal KPI’s are you tracking? (How do you collect / report?) Do you have a Science Based Target announced to the market? Are you talking to your suppliers about their science-based targets? Direct Do you have multi-tier orders? Do you have drop ship process? Please explain the process Do you have Consignment Stock for certain Parts/materials? Please explain the Consignment Purchasing Process Do you perform Subcontract Purchasing for certain components? Please explain the process. Do External Mfr procure all required Components/Raw Materials? Do you know Real time consumption status at Order level? Procurement SAP Ariba Discovery Questions - Additional Questions for deeper conversation Take advantage of these questions to drive your conversations with the customer.