Benchmarking Sourcing Organization Structure

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    • #292148

      Today, our center-led sourcing organization is comprised of category teams, supported by a central team that provides market research, analytics and process improvements. We intend to expand our involvement in SRM, and to develop enhanced capabilities in risk management and contract support. Much of our recent growth has been organic and we are now looking to optimize our organizational structure.

      We would be interested to know more about your procurement organization. 

      1. Demographics: What is your organization’s industry?

      2. Overall mandate: What scope is covered by your procurement team (e.g. sourcing, purchasing, logistics, SRM, risk…)?

      3. Size: What amount of spend is addressed by your procurement organization?

      4. Reporting: To whom does your head of procurement report?

      5. Procurement support teams: Does your procurement organization have procurement support “sub-teams” (e.g. market research, process improvement, SRM, risk management, contract support, etc.) or is that integrated in your category teams?

      6. Organizational chart: Could you share a copy of your organizational chart (anonymized if necessary) to allow us to understand reporting structure and number of staff?

       

    • #293235
      Anonymous
      Guest

      1. We are in the Financial Services Industry

      2. We cover Strategic Sourcing and the P2P processes. Some SRM is done.

      3. Our 3rd Party Spend is about $1B/year

      4. Our organization reports to the company’s COO

      5. All of those subject areas are more/less integrated into category responsibilities (individuals cover more than one category)

      6. Our Organization is basically split into 3 parts: Strategic Sourcing; Procurement Operations; and Travel (one FTE)

    • #293237
      Anonymous
      Guest

      1. Demographics: What is your organization’s industry? Healthcare Insurance

      2. Overall mandate: What scope is covered by your procurement team (e.g. sourcing, purchasing, logistics, SRM, risk…)? Supplier qualification, Sourcing, Purchasing, Contracts, Travel and related tools

      3. Size: What amount of spend is addressed by your procurement organization? Approx. $500m

      4. Reporting: To whom does your head of procurement report? Global CFO

       5. Procurement support teams: Does your procurement organization have procurement support “sub-teams” (e.g. market research, process improvement, SRM, risk management, contract support, etc.) or is that integrated in your category teams? Sourcing team, Tools team, Travel and Support

    • #293238
      Anonymous
      Guest

      1. Demographics: What is your organization’s industry? Prof Services

      2. Overall mandate: What scope is covered by your procurement team (e.g. sourcing, purchasing, logistics, SRM, risk…)?Sourcing, Negotiation, Contracting, SRM, Internal/External research, Risk Monitoring

      3. Size: What amount of spend is addressed by your procurement organization?Policy=>$100K spend. Often involved in lower spend amounts especially for complex categories such as software/licensing

      4. Reporting: To whom does your head of procurement report?Office of the CFO

      5. Procurement support teams: Does your procurement organization have procurement support “sub-teams” (e.g. market research, process improvement, SRM, risk management, contract support, etc.) or is that integrated in your category teams?Operations sub-teams that cross categories include: Special Projects, Reporting & Analysis, Sourcing Support, Contract COE, E-Enablement

      6. Organizational chart: Could you share a copy of your organizational chart (anonymized if necessary) to allow us to understand reporting structure and number of staff? 

      • US Organization ~ 95 people
      • Top Level: Chief Procurement Officer
      • Next Level: Director, Professional Services Procurement (22 people)
      • Director, Technology Procurement and US India Procurement (13 people)
      • Director, Travel Procurement (15 people)
      • Director, Real Estate/Office Services Procurement and Procurement Operations (44 Total)
      • Real Estate/Office Services Procurement – 11
      • Reporting & Analysis – 10
      • PMO/Special Projects – 5
      • Other Procurement Operations – 19
    • #293244
      Anonymous
      Guest

      1. Scope: Health/Social Services

      2. Overall Mandate: Sourcing, Purchasing, Purchasing Systems. Buyer Magic

      3. Spend: Hundreds of Millions

      4. Reporting: Treasury/Finance

      5. Support Teams: Funny

      6. Org Chart: Small Organization 4 Mangers => 1 Director

    • #293267
      Anonymous
      Guest

      1. health and wellness – insurance / services and supplies / software development / administration of corp HR, self funded healthcare, and insurance offerings for its membership, employees etc.

      2. all purchases from real estate to supplies to contractors

      3. billions

      4. align to Corporate leadership (formally aligned segmental such as finance, technology, corporate, business operations)

      5. multiple sub teams are in ES&P department / multiple support teams outside of department

      6. Org charts are not shared externally, I am not authorized to approve an exception.

      We are under corporate leadership (top of chart is Corporate then branded divisions under that) Procurement is equal to not part of Finance and compliance and IT etc. we are under department Corporate Services / enterprise operations – Segmental leads for IT; International; Business Processes; Real Estate and a few others Each divide more based on metric such as EU / India; or by state or region ; by product type or by large membership type (such as government; marketing; business to business sales; consumer sales; or by offering type such as insurance types; or by tech type such as desktop software; commercial offerings software; open source; hosted; etc. these lines are not solid and often overlap and morph as the commercial offerings change to meet consumer needs.

      10 years ago there were maybe 20 resources in this department, today there are 10x that many. We manage Master contracts for ASP, Saas, Software, hardware, Services, real estate, print, business processes, office supplies, third party reseller contracts, commercial offerings, travel and expenses, marketing

      Support teams process and collect and manage vendor information; contracts; new vendor, terminating vendor; risk management; contractual obligations of vendor such as insurance certs, escrow, security reports, disaster recovery action plans and etc.

    • #293269
      Anonymous
      Guest

      1. Demographics: What is your organization’s industry? Global Chemical Manufacturer

      2. Overall mandate: What scope is covered by your procurement team (e.g. sourcing, purchasing, logistics, SRM, risk…)? Our CPO (Chief Procurement Officer) covers Direct & Indirect Sourcing, Supply Chain, Logistics, and the COE (Center of Excellence).

      3. Size: What amount of spend is addressed by your procurement organization? The Sourcing Organization (excluding Supply Chain & COE) manages over $2.5 billion in spend.

      4. Reporting: To whom does your head of procurement report? The CPO reports to our CEO/Chairman.

      5. Procurement support teams: Does your procurement organization have procurement support “sub-teams” (e.g. market research, process improvement, SRM, risk management, contract support, etc.) or is that integrated in your category teams? Please reference question 2… those teams are further divided into sub-categories for better spend management.

    • #293270
      Anonymous
      Guest

      1. Demographics: Finance

      2. Overall mandate: sourcing, purchasing, category management, SRM

      3. Size: approx. Cdn $2B

      4. Reporting: CFO

      5. Procurement support teams: These functions are managed under a COE that supports the category teams

    • #293272
      Anonymous
      Guest

      Many of us in Procurement feel that technology should be the driver for development of a process as purchasing technology is by far the biggest spend and most complex contracting and compliance vendor set. OR that technology should have a separate intake and process. Of course the problem with that is those vendors who sell services, technology and consulting or non tech items. We have an internal app store for purchases of all generic items and even out of the box software. This has helped reduce procurements involvement in each and every purchase.. so if you want to buy something, you go to that intranet site first and see if your item is available, if not, you then go to another tool to request assistance for a non catalog item. Additionally, the intake tool is divided into separate sections for procurement based on policies and purchase categories; such as technology is divided into catalog items, non catalog items, international, government, that way all government contracts are not visable to rest of procurement and all requests go to that team immediately without double layered triage review. Our system of checks and balances is extremely complex,and time consuming, and seems to cycle every 7 -10 years from tight controls to more lax giving and taking authority of Procurement leads to make decisions for contracting. For our team in IT procurement we side bar with over 14 departments for terms of the contract; we seek approvals from at least 4 departments; as contract risk increases so do the approvals; as contract spend increases so do the administration tasks and approvals.

    • #293246

      1. Demographics: What is your organization’s industry?

      P&C Property and Casualty Insurance and Annuities

      2. Overall mandate: What scope is covered by your procurement team (e.g. sourcing, purchasing, logistics, SRM, risk…)?

      No mandate. Procurement includes sourcing, contracts, buying and support

      3. Size: What amount of spend is addressed by your procurement organization?

      At this time $150mm

      4. Reporting: To whom does your head of procurement report?

      Finance

      5. Procurement support teams: Does your procurement organization have procurement support “sub-teams” (e.g. market research, process improvement, SRM, risk management, contract support, etc.) or is that integrated in your category teams?

      We utilize our Enterprise Library for research and our Enterprise Security team along with Corporate Legal for risk management. Our support team will assist customers manage/monitor suppliers and in some cases we manage on behalf of the organization. We are not large enough for category teams.

      Organizational chart: Could you share a copy of your organizational chart (anonymized if necessary) to allow us to understand reporting structure and number of staff?

       

      We have 14 members of the team. Procurement Director. Reporting to the Director include 2 Attorneys, Team Admin, Manager of Sourcing (who manages sourcing) and Manager of Buying/Support (who manages that team)

    • #293738

      Members,

      Please see the PDF referenced here for a report of the results of this Peer2Peer. 

       

       

       

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