L4M1 stakeholders

Stakeholders

Any individual who can affect or is affected by the achievement of the organisation's business objectives.

Colleagues with a need

Create requisitions which procurement action. The need they generate is integral to their role in business. e.g. member of quality department need tools to fulfil role of checking products to ensure they meet required specifications. Without tools they would not be able to perform this function effectively. Effects procurement if items delivered not as detailed on the specification.

Accounts

Manage the organisation's budget. Procurement team needs to ensure they get the best value for money possible. Helps account team to keep expenditure within budget.

Examples of external suppliers

Producers Suppliers Banks Local community Customers Media Government and regulatory bodies

manufacturing department

Relies on procurement to source and supply its components. Raises requisitions to advise what is needed. Without the procurement team the manufacturing operations would stop.

quality department

Responsible for ensuring that the organisation is able to deliver its product at a specified standard. If component products do not meet the required PO specifications then the supply chain could stop. Quality department could also find fault with an end product prior to distribution and could stop supply chain.

Mendelow's Matrix

Stakeholder matrix. Identifies 4 groups and how they are to be managed. - Keep Satisfied High level of power. Not interested in running of business. e.g. Shareholders. - Manage closely High level of interest and high level of power. Key that get information they need and are involved in decision making. e.g. senior managers. - Minimum effort Least important and in terms of power and influence. Still key to the organisation. Typically small customer and suppliers. Require little effort from the organisation but it might benefit the stakeholder relationship to keep them updated. - Keep informed Low amounts of power within the organisation but are powerful outside of it. Local activist groups are an example.

Company owner

Stakeholder with significant power. Interest primarily related to profits. Procurement must perform well to keep stakeholders satisfied.

External stakeholders

people or groups in the organization's external environment that are affected by it. Consist of banks, customers, suppliers, community.

Internal Stakeholders

people who are involved directly with the business. Consist of employees, owners, and the board of directors.