The evolution ofprocurement to supply management corresponds with the maturity models ofprocurement. Maturity models are defined by (Randeree et al., 2012) as a staged structure of theextent to which the procurement function has progressed by effectively adoptingnew procurement processes and best practices. The stages of progression tomaturity were proposed by renowned authors among others: (Reck and Long, 1988) who developed a four-stagepurchasing development model which includes the passive, independent,supportive and integrative stages; the (Syson, 1992) model is divided into threestages, namely transaction, commercial and proactive; while (Nelson et al., 2005) compared the procurement evolutionstages to the educational development from primary to post- graduate level.
Later, (Burt et al., 2010) proposed a five-stage model,starting from the reactive stage towards the world-class level.All the maturity modelsaim at operational efficiency and increasing the bottom line of the organization.They also stress the importance of placing procurement at a high level in theorganizational structure, the use of centralized procurement, and integrationwith other functions through the use of cross-functional teams (Schiele, 2007, Stolle, 2008).
Others (Rozemeijer, 2000, Smock et al., 2007, Rudzki and Trent, 2011) emphasize strategic commitment,good leadership, aligned strategic objectives, innovation and technology,strategic sourcing, risk management, collaborations, contract management,outsourcing and consortium buying. The content varies across the differentmodels.
The maturity modelscompare and measure the progress made by procurement as a discipline inattaining best practice (Stolle, 2008, Bloch, 2011). They also direct improvement ofprocurement’s performance, efficiency and effectiveness in terms of financialgains that give organizations a competitive edge (Pollice and Fleury, 2010, Kraljic, 1983). It is presumed that theprocurement maturity models were developed to assist procurement professionalsand practitioners to implement PBPs. The maturity models indicate that thehigher the maturity levels, the better the chances that the best practices willbe applied (Sales and Alsua, 2012).Theearliest maturity model was developed by (Reck andLong, 1988), as shown below in Figure2.
2. One of the practical shortcomings of this model is that it did not specifywhat exactly should be done in order to elevate to the next level andultimately to the integrative stage. For example, no guidance was given on howto progress from passive stage and what tools or techniques were required forthe advancement.