The Procurement Glossary » Procurement Excellence

Procurement Excellence

Strategy & Operations

Definition

The consistent achievement of high performance across procurement's cost, risk, service and innovation goals.

Explanation

Excellence is the outcome maturity, good operating models and strong processes aim for — measurable results delivered reliably and improved over time. It is defined by benchmarking against peers and best practice, not by activity for its own sake.

Example

Reaching procurement excellence, the team now delivers audited savings every year while cutting supply risk.

Related terms

• Procurement Maturity — A measure of how developed an organisation's procurement capability is across people, process, technology and data.
• Center of Excellence (CoE) — A central team that develops and shares procurement best practice, tools and expertise across the organisation.
• Benchmarking — Comparing prices, costs or performance against internal history, peers or the market to judge competitiveness.
• Continuous Improvement — An ongoing effort to incrementally improve processes, performance and outcomes over time.

Frequently Asked Questions

What is Procurement Excellence?

The consistent achievement of high performance across procurement's cost, risk, service and innovation goals. Excellence is the outcome maturity, good operating models and strong processes aim for — measurable results delivered reliably and improved over time. It is defined by benchmarking against peers and best practice, not by activity for its own sake.

Can you give an example of Procurement Excellence?

Reaching procurement excellence, the team now delivers audited savings every year while cutting supply risk.

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