Route 3 - Develop Strategy - Commodity/Service Strategy Executive Summary
Prior to finalising the commodity/service strategy and submitting it for approval, the Procurement Officer should ensure an Executive Summary is included. The purpose of the executive summary is to highlight the key points of your strategy including details of any decisions taken and the justification.
The finalised strategy which has been developed with the User Intelligence Group (UIG) should be approved on PCS-Tender by an appropriate approver, as per your local governance arrangements.
Commodity/Service Strategy Review
Commodity/service profiling and strategy development should not be an isolated or 'one-off' occurrence. A subset of the UIG needs to be assigned to carry out the ongoing activities of supplier relationship management, monitoring, implementation, compliance and benefits tracking, and a periodic review of the chosen strategic option to validate its applicability for the current/changing environment should also be considered (both internal to the procuring organisation and external to market supply).
There are a number of issues that may trigger a commodity/service strategy review, these include:
- Market developments e.g. changes in economic environment, technology, regulation
- Internal changes to the organisation e.g. significant restructuring, changes in demand
- Contract termination e.g. through poor performance
- Contract expiry
- Reviewing of organisational objectives and / or legislative changes may highlight areas for review at a commodity/service strategy level e.g. sustainable procurement opportunities