Early involvement matters

The Bold Red Line in the diagram below illustrates the value that Procurement can add when involved early in the sourcing exercise. The x-axis is the percentage of Procurement savings versus the overall contract value. The y-axis details the 6 step Procurement methodology in use by the University's Procurement department. The best outcomes are achieved when Procurement get involved from step 1 in the sourcing process, with relatively little value being added when involved to the right of the 'Supplier Selection' line.

The Procurement Value Opportunity Curve also illustrates the value that Procurement can achieve when involved as early as possible, with the x-axis representing Time and the y-axis representing Value. Maximum value is achieved when Procurement is involved as early as possible. The ideal position being top left on the Value Opportunity Curve. The Green and Blue Chevron diagram below the curve provide examples of related activities that occur during the sourcing process.