THE FACULTY QUARTERLY

Spring 2012

Know You're Right

Do you remember your first day in the role and how daunting it was to sort fact from fiction, data from noise and reality from perception?

Even today, do you KNOW that you are getting what you are paying for, or do you simply hope that what is actually happening is the outcome you are after?

The Faculty has developed a procurement governance review process which will answer this question definitively and put you in a position where you "know you are right" rather than "hope you are not wrong".

“The CEOs and CFOS we talk to want know what they want to be happening out in the operations, actually is happening.  The audit process is only skin-deep on procurement and supply issues and therefore doesn’t provide the detailed information needed. There is a real need for organisations to truly understand what is happening out in the field, so they can effectively reduce costs and manage risk,” said The Faculty Founding Chairman, Tania Seary.

Although procurement professionals are now well-equipped with a sophisticated skill set to manage third party risk, the situation is compounded by the fact that just about everyone in an organisation has some sort of interface with suppliers, but are often not equipped with the commercial skills to manage and mitigate risks as they emerge.
Organisations are challenged with how they ensure the knowledge and commercial acumen possessed by the centre, permeates out effectively to where “the rubber hits the road” with their supply markets.

The Faculty's procurement governance review process will help leaders answer the following questions about their front line operations:
• Is the value that was negotiated in the contracts, the value that is being delivered through managing the contracts?
• Are they effectively managing costs?
• Are they aware of the various types of risks (financial, reputational, supply etc) which they manage?
• Are they following the company’s policies and standards?

The output of the procurement governance review process will:
• Provide a clear outline of how your “front line” is managing supply relationships 
• Identify areas where improvements can be made
• Provide opportunities for genuine immediate cost savings and risk mitigation
• Give you confidence that the procurement strategy for your organization is not only appropriate , but is actually being implemented where the "rubber hits the road".

In the coming months, The Faculty will be hosting a series of lunches for CFO's to explain the process and to see whether it has relevance and value for your organisation. 

If you would like further information please contact Tania Seary.