Ten Commandments of Procurement – the Ashcroft Decalogue

Our summer topic on the Ten Commandments of Procurement, that is, statements of a procurement and supply chain nature that are absolutely, unarguably true, under all circumstances and conditions, has made a few people think hard about the principles of procurement by which we all must obide. We have had a few contributions: from our own Peter Smith, Dr Michael Lamoureux , the Doctor of Sourcing Innovation, Steve Demel CPPO, and today from Stephen Ashcroft, Associate Director, Lead for Procurement and Commercial Advisory, Consulting, AECOM.

Here is Steve's decalogue -- what do you think? Are they all universally true?

 

  1. Though shall meet the financial plan
  2. Though shall recruit, retain and develop talent
  3. Though shall innovate
  4. Though shall be operationally excellent
  5. Though shall honour your stakeholders
  6. Though shall empower them with new capabilities
  7. Though shall simplify their workflow
  8. Though shall remember to understand your spend
  9. Though shall remember to facilitate supplier engagement and management
  10. Though shall remember to drive savings without sacrificing quality, all while complying with the hallowed procure-to-pay vision

Not sure about the "remembering to" ones -- they don't actually constrain you to the principle or oblige you to carry it out. Sounds like you could get around not doing those ones and still be abiding with the commandment. You'd have to prove you'd remembered to do it though - so maybe ...

What do you think? Are they all unarguably true?

Voices (2)

  1. bitter and twisted:

    I disagree with most

    1. Events though

    2. But also bid a gracious Au Revoir when ambitions are frustrated

    3. No no no. You cant ‘be innovative’ You can be flexible, open-minded, inquisitive, ambitious, rational… and from these virtues innovation will flow.

    10.. No no no. Savings are bullshit. You need to drive PROFIT.
    Procure to pay is bullshit, ‘Need thru Use’ is the correct cycle.

  2. Chuck Intrieri:

    This is a good post. I would add: “8.Though shall remember to understand your spend” by saying know what your costs are in an item you are procuring, not price, costs. After all the costs are calculated, and you have bottom line cists, add profitability for the supplier.

    3.Though shall innovate: use The Supplier Day Concept and Value Analysis with cross-functional teams for cost reduction.

    Procurement=QQPPT: quality, quantity, price, place and time.

    Use a Purchase Price Variance Report (PPV). Visit your suppliers occasionally.

    Ensure you have effective terms and conditions on your Purchas Order, and Web Site. Know your incoterms: FOB points.

    Chuck Intrieri

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