Procurement - I am looking to create a benchmark for 7-step Strategic Sourcing. Does anyone have experience with this?

In looking through your comments about the 7-Step process, the linked resource may be helpful with establishing a foundation for this. The State of Florida has a certification program that trains state employees through the contract process - from consideration for a program from a needing program to the conclusion of monitoring and closing out said contracts - for any commitments over $100K as it aligns with the requirements of Florida Statutes & regulations. The outline seems to mimic what you're requesting. 

https://www.dms.myflorida.com/business_operations/state_purchasing/public_procurement_professional_development/florida_certified_contract_manager

The goal is to establish clear standards or metrics that can be used to measure the efficiency, effectiveness, and performance of each step.

1. Understand the 7-Step Strategic Sourcing Process

Spend Analysis: Understanding where and how much money is being spent.
Supplier Market Assessment: Researching the supplier market and identifying potential suppliers.
Developing a Sourcing Strategy: Formulating a strategy that aligns with business objectives and market conditions.
Supplier Selection: Evaluating and selecting the best suppliers based on defined criteria.
Negotiation and Contracting: Conducting negotiations and establishing contractual terms.
Implementation and Supplier Integration: Ensuring a smooth transition and integrating suppliers into the supply chain.
Supplier Performance Management: Ongoing monitoring and evaluation of supplier performance.

2. Define Key Metrics for Each Step

For each step of the process, you'll need specific benchmarks to assess performance.

These metrics could include time efficiency, cost savings, process compliance, and supplier performance.

Below is a breakdown of potential metrics for each step:

Step 1: Spend Analysis
Spend Visibility: % of total spend that is fully analysed.
Cost Categorization Accuracy: The accuracy with which spend is categorized (e.g., indirect, direct, categories).
Savings Identified: Total potential savings identified during spend analysis.

Step 2: Supplier Market Assessment
Supplier Research Completion Time: Average time taken to assess suppliers in a given category.
Supplier Diversity: % of suppliers that are new, diverse, or innovative.
Supplier Risk Evaluation: % of suppliers evaluated based on risk factors (financial health, sustainability, etc.).

Step 3: Developing a Sourcing Strategy
Time to Strategy Development: Time taken to develop the sourcing strategy.
Stakeholder Engagement: % of internal stakeholders involved in strategy discussions.
Alignment with Business Goals: % of strategies aligned with overarching business or procurement goals (e.g., sustainability, cost reduction).
 
Step 4: Supplier Selection
Number of Suppliers Considered: The number of suppliers considered per sourcing event.
Supplier Scoring Accuracy: The accuracy of the supplier selection criteria in identifying the best suppliers (benchmark by evaluating supplier performance over time).
Supplier Diversity & Inclusion: % of contracts awarded to diverse or underrepresented suppliers.

Step 5: Negotiation and Contracting
Negotiation Cycle Time: The average time taken to complete negotiations.
Savings Achieved vs. Target: % of cost savings or value delivered relative to initial target.
Contract Compliance Rate: % of contracts that are signed with all agreed terms met.

Step 6: Implementation and Supplier Integration
Onboarding Time: Time taken to onboard suppliers after contract signing.
Supplier Satisfaction: % satisfaction rate from suppliers during the onboarding process.
Implementation Success Rate: % of projects implemented on time and within budget.
 
Step 7: Supplier Performance Management
Supplier Compliance: % of suppliers meeting KPIs and contractual terms.
Supplier Innovation: Number of innovations or improvements proposed by suppliers.
Supplier Relationship Health: Satisfaction rate from regular supplier reviews.
 

3. Data Collection and Analysis

Data Sources: Leverage internal systems (ERP, procurement systems) and external data sources (market data, benchmarking platforms) to collect relevant data.
Benchmark Comparisons: Compare internal performance data against industry standards, historical performance, and competitive benchmarks.
KPI Monitoring Tools: Utilize tools like dashboards to continuously monitor and update KPIs for each step.
 

4. Establish Targets and Improvement Areas

Set Realistic Targets: Based on the data and competitive benchmarks, set specific, measurable, achievable, relevant, and time-bound (SMART) targets for each metric.
Prioritize Improvement Areas: Identify areas where current performance is below the benchmark and create action plans to address gaps.
 

5. Continuous Improvement

Regular Benchmark Reviews: Schedule regular (quarterly, bi-annually) reviews of the benchmarks to ensure they remain relevant and to incorporate improvements or changes in strategy.
Feedback Loop: Gather feedback from procurement teams and suppliers to adjust benchmarks or performance expectations based on real-world experiences.

6. Industry and Market Trends Incorporation

Stay updated with industry best practices and evolving market conditions (e.g., technology, sustainability goals) to ensure benchmarks are competitive and in line with modern sourcing strategies.
 

Yes - I've taken it a step further and actually created a 6Sigma Strategic Sourcing process based on 6Sigma and the 7 step sourcing process.