The procurement process review is a proven strategy to reduce costs and improve the delivered value of goods and services. PSI can provide a framework for reviewing your organisation’s current procurement process, assisting in identifying areas for improvement, and executing the right procurement strategies in order to reduce costs significantly.

Influencing factors that are likely to impact on the procurement review include the:

• consistency of application of standardised procurement principles and the current procurement structure;
• availability of procurement spend data;
• extent to which feedback is available on the strategy and implementation issues; and
• degree of senior organisational commitment to the future state procurement strategy and implementation plan.

A review of procurement processes includes issues such as purchasing and acquisition strategies (including the use of e-commerce and preferred supplier arrangements), logistics (stores handling and distribution), tendering practices, contract management, and strategic relationships with related agencies.

PSI has successfully brought together these issues by adopting a procurement life cycle model as the framework for developing and implementing procurement policies and processes.