Procurement Models

Understand and communicate complex topics with the NLPA’s procurement models

Without procurement models, some concepts can seem too complicated, too confusing, too esoteric and even too boring. So, using procurement models can help you focus on your objectives, communicate your strategies more effectively, and simply succeed in areas you once thought too complicated!

The Next Level Purchasing Association and its founder – Charles Dominick, SPSM, SPSM2, SPSM3 – have created a number of legendary procurement models throughout the years to help guide your efforts. Here is a chronological list of those models with links to additional explanations.

Procurement Models - The Dominick Formula

The Dominick FormulaTM  

(2006)

The Dominick FormulaTM is a procurement model that provides a way to score prices for comparison in a multiple criteria supplier scorecard. The Dominick FormulaTM is built on this principle: the penalty to a supplier’s pricing score should be proportionate to the degree that its price varies from the Lowest Qualified Bid (LQB).

More info at: https://www.nextlevelpurchasing.com/articles/supplier-scorecard.php

Procurement Models - The Procurement Funnel

The Procurement FunnelTM

(2012)

The Procurement FunnelTM  is a procurement model that graphically represents how various factors influence the actual cost savings your organization can realize on its “bottom line.”  It is designed to help procurement leaders focus on the critical factors and metrics that can help a procurement team reach its cost savings potential.

More info at: https://www.nextlevelpurchasing.com/blog/2012/09/the-procurement-funnel-groundbreaking.html

Procurement Model- The Dominick Matrix

The Dominick MatrixTM

(2013)

The Dominick Matrix is a procurement model that guides a procurement professional to use one of four strategies for working with a supplier. The strategy chosen will depend on two factors: the supplier’s materiality to your business and the supplier’s sophistication level. Materiality ranges from tactical to strategic. Sophistication level ranges from unsophisticated to sophisticated.

More info at: https://www.nextlevelpurchasing.com/blog/2013/11/dominick-matrix-supplier-stratification.html

Procurement Models - SPSM-BOK Mastery Model Framework

SPSM-BOK Mastery Model®

(2014)

The Strategic Procurement & Supply Management Body of Knowledge® (SPSM-BOK®) is a collection of authoritative educational materials and documented best practices. Together, these materials represent the core skills and knowledge, referred to as competencies, required for excellence in the procurement profession. The SPSM-BOK® Mastery Model is a four-level roadmap for developing those competencies.

More info at: https://www.youtube.com/watch?v=ECKMcNJoQmY

Procurement Model - Continuous Strategic Supplier Evaluation Cycle

The Continuous Strategic Supplier Evaluation CycleTM

(2015)

Strategic sourcing and supplier relationship management should be – but often isn’t – thought of as a cycle. The Continuous Strategic Supplier Evaluation CycleTM is a procurement model that illustrates the various stages in this cycle.

More info at: https://www.nextlevelpurchasing.com/blog/2015/07/the-continuous-strategic-supplier-evaluation-cycle.html

Procurement Models - Dominick's Sourcing See-Saw

Dominick’s Sourcing See-SawTM

(2015)

Rarely do a buyer and supplier have equal leverage in a sourcing project or negotiation. Leverage is largely dictated by supply market conditions. Dominick’s Sourcing See-SawTM is a procurement model that helps a procurement professional more simply assess where the balance of power lies in a sourcing project.

More info at: https://www.nextlevelpurchasing.com/blog/2015/06/see-saw.html