PI Coefficient 2020 per branche
A coefficient assessing the connection with the business of your procurement organization in relation to the dynamics in your supply chain. This is the base for custommade development of Procurement. It can’t be more practical.
For every organization profitable value creation for customers is what it's all about. What is the added value of the organization in the supply chain. The exponential technological dynamics causes a rapid development of new and changing business models. In this environment the connection with supplier markets at a strategic level is becoming increasingly important to realize sustainable growth, in almost every organization.
What role does Procurement have in this? The connection of Procurement with the business is the key factor in determining the impact of Procurement on the development of the entire organization. To what extend is the impact of Procurement needed? This is determined by the dynamics in the supply chain. The intenser the dynamics in the supply chain, the score on “Business Connection Procurement” should be higher. Custommade development of Procurement!
Management Procurement says that improving the connection with the business is one of the top priorities. Determining factors for the development of the connection with the business are "behaviour" and "position" of Procurement. These factors are almost inseparable. Unfortunately these factors most of the time doesn’t get the justified attention. Maybe because these concepts are not specified for Procurement. However they are the basis for an adequate “Business Connection Procurement” and therefore the basis of realizing the needed impact of Procurement on the organization.
Di-Mens has developed the PI coefficient (Procurement Impact). With this score we can indicate the “Business Connection Procurement” in relation to the “Dynamics in the supply chain”. This should be the base to work on an adequate development of Procurement. Through filling out a questionnaire the scores of both indicators will be determined. This questionnaire has been developed in close cooperation with the market. “Business Connection Procurement” should be in harmony with the “Dynamics in the supply chain”.
Di-Mens just finalized a survey among over 900 Directors/Manager Procurement in the Dutch private area. Based upon a 14% response we can report fort he 2nd year in a row the scores of “Business Connection Procurement”, “Dynamics in the supply chain” and PI coefficient per sector in the Dutch private area.
Through the lens of Dutch Directors/Management of Procurement the dynamics in the supply chains of “Food & Farma” are the highest. The “(Petro)chemical Industry” attain the highest performance on “Business Connection Procurement”. All branches are positive on PI (Procurement Impact) >1 between 1,19 ( Production and Food & Farma) and 1,56 ((Petro)Chemical)
If you want more background regarding the scores per sector or do you want to know where you are with your organization? Please contact markvangaal@di-mens.nl www.di-mens.nl.