Fit2Procure app promotes the analysis phase in procurement projects
The "Fit2Procure" app revolves around the attractiveness of procurement markets and a company's readiness for international procurement. Based on user responses, the app provides a balanced analysis using SWOT, positioning in an attractiveness/capability matrix, and a ranking of potential suppliers.
The continuing strength of the Swiss franc, high costs and a potential lack of labor in Switzerland are increasing the pressure on Swiss SMEs to expand international procurement. The Export Risk Monitor 2016, a survey by the Bern University of Applied Sciences and Euler Hermes, shows that many companies are expanding their international procurement. This allows them to reduce high costs and benefit from the weaker economy in many emerging markets.
The Fit2Procure (F2P) app - available for iPhone and Android - supports companies in the analysis phase of international procurement projects by answering the following fundamental questions: How attractive is a target country for international procurement? How well is your own company prepared for international procurement?
An analysis of relevant factors
It supports the analysis phase up to the SWOT (analysis of strengths, weaknesses, opportunities and threats) before the actual strategy definition. With this method, companies can prepare the relevant information to develop a sourcing strategy for a country.
The method contains two dimensions: The external dimension shows the opportunities and threats of the foreign procurement market, while the internal dimension shows companies their own strengths and weaknesses with regard to international procurement. This dimension in particular is often underestimated.
One strength of the method is that, in addition to the potential of a foreign procurement market, it also clearly shows how "fit" a company is for international procurement.
Four results
The user answers the following questions in the app:
- Target country
- Company
- potential suppliers
Key indicators from the World Bank are used to support these questions. The user receives four results via the app:
1.) Independent weighting
Individual weightings can be carried out independently of each other. These can then be compared with each other. This leads to interesting discussions especially in the points where team members have given strongly differing answers.
2) SWOT country analysis
The SWOT shows the most important opportunities of the target country, threats of the target country, strengths of the company and weaknesses of the company. These serve as the basis for further discussions in the company's strategy-building process.
3.) Status of the company
The status of the company in the attractiveness/ability matrix ("country sourcing attractiveness/ability to source internationally") is shown, calculated based on the weighting/rating of the questions.
4.) Norm strategies
Specific goals (such as "start internal improvement project") serve as the basis for further company directions.
Based on the answers, the supplier ranking is created. The potential supplier with the ranking 1 shows the most evaluation points.
Advantages of the F2P app
Advantages of the app are its simplicity and the standardized questions with defined answers. Company-specific questions can be added The app brings up all the important factors related to international procurement. The app enables well-informed decision making for the assessment of new procurement markets. It is already used by students during study projects and by companies, for example, during visits to potential target countries.
Fit2Procure was designed at the Bern University of Applied Sciences by Prof. Dr. Paul Ammann. You can find more details and specifications about the app here.
