Leveraging SWOT Analysis

for Procurement Strategies

A SWOT Analysis at the Organizational Level is the study
of an organization’s internal strengths and weaknesses, and
external opportunities and threats.

A SWOT Analysis at the Departmental | Procurement

Function Level is the study of a Procurement Department’s
internal strengths and weaknesses, and external
opportunities and threats.

Process for Departmental | Procurement Function Level

SWOT:

Leverage your Category / Commodity | Sustainability

Team to conduct the following steps:

Step 1: Assemble to collaborate with your senior

management team
Step 2: Determine and document your most significant
departmental strengths
Step 3: Determine and document your most impactful
departmental weaknesses
Step 4: Determine and document your most significant
departmental opportunities
Step 5: Determine and document your most impactful
departmental
threats

Procurement Department SWOT Analysis Matrix

Procurement Function SWOT Analysis Domains:

Strengths: are Procurement Function core

competencies or capabilities that are executed well.
They can be a source of strategic alignment and
competitive advantage
Weaknesses: are Procurement Function
disadvantages that exist
Opportunities: are external factors that, if leveraged
effectively, can be a source of Procurement Function
enhancement and competitive advantage

Threats: are external factors that, if they become

reality, can constrain the Procurement Function and be
a source of brand damage and customer
dissatisfaction, requiring intense risk mitigation
strategies

Notes about the above Procurement Department SWOT:

The configuration of the issues on this SWOT provides

many opportunities to design and execute many
departmental level strategies.

For example:

1. The skill level of the procurements team can be

combined with the innovation capabilities of suppliers
to drive breakthrough solutions to organizational
challenges that impact sustainability

2. Collaboration with suppliers can be effective in

reducing the number of products made from a high %
of non-biodegradable raw materials

3. The improvement of technology can reduce processing

errors as well as carbon footprint, Total Cost of
Ownership, Total Cost to Serve, and fiscal sustainability

4. Reduction of errors can reduce can stock-outs,

expedited shipments and carbon footprint

5. The presence of highly skilled procurement

professionals, collaborative suppliers can be leveraged
to enhance supply sustainability and customer
satisfaction

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Copyright 2019. This article is the property of the Next

Level Purchasing Association and may not be copied or
republished in any form without the express written consent
of the Next Level Purchasing Association. Click here to
request republishing permission.

By David Millington, SPSM, SPSM2, SPSM3 - Director of

Education (Next Level Purchasing Association)

Popular Courses in Procurement &

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