Procurement Maturity Matrix

The Procurement Maturity Matrix is a 2x2 matrix used to assess the maturity of a company's procurement process. It is used to identify areas of improvement and develop strategies to reach higher levels of maturity.

At a very high level, the Procurement Maturity Matrix is used in the context of business, procurement.

Procurement Maturity Matrix quadrant descriptions, including examples
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What is the Procurement Maturity Matrix?

A visual explanation is shown in the image above. The Procurement Maturity Matrix can be described as a matrix with the following quadrants:

  1. Basic: Reactive and ad-hoc, limited visibility into supply chain, manual processes and paper-based contracts
  2. Managed: Structured and proactive, established processes and procedures, some visibility into supply chain
  3. Optimized: Highly structured and proactive, high level of visibility into supply chain, established processes and procedures
  4. Integrated: Highly integrated with other business functions, high level of visibility into supply chain, established processes and procedures

What is the purpose of the Procurement Maturity Matrix?

The Procurement Maturity Matrix is a 2x2 matrix used to assess the maturity of a company's procurement process. It is used to identify areas of improvement and develop strategies to reach higher levels of maturity. The matrix is divided into four quadrants, each representing a different level of maturity.

The top-left quadrant represents the 'Basic' level of maturity, where the procurement process is reactive and ad-hoc. Companies in this quadrant are likely to have limited visibility into their supply chain and lack formal processes and procedures. An example of a company in this quadrant is one that relies on manual processes and paper-based contracts.

The top-right quadrant represents the 'Managed' level of maturity, where the procurement process is more structured and proactive. Companies in this quadrant are likely to have established processes and procedures and have some visibility into their supply chain. An example of a company in this quadrant is one that has implemented an automated procurement system.

The bottom-left quadrant represents the 'Optimized' level of maturity, where the procurement process is highly structured and proactive. Companies in this quadrant are likely to have a high level of visibility into their supply chain and have established processes and procedures. An example of a company in this quadrant is one that has implemented a comprehensive procurement system and is actively monitoring and optimizing their supply chain.

The bottom-right quadrant represents the 'Integrated' level of maturity, where the procurement process is highly integrated with other business functions. Companies in this quadrant are likely to have a high level of visibility into their supply chain and have established processes and procedures. An example of a company in this quadrant is one that has implemented a comprehensive procurement system and is actively monitoring and optimizing their supply chain, as well as integrating it with other business functions such as finance, operations, and marketing.


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What templates are related to Procurement Maturity Matrix?

The following templates can also be categorized as business, procurement and are therefore related to Procurement Maturity Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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