Procurement complexity refers to the level of difficulty involved in procuring a good or service. An assessment of complexity considers a broad range of factors including risk, total cost of ownership and market dynamics associated with the procurement activity.
Capability describes an individual’s or organisation’s ability to perform tasks or activities effectively. Procurement capability is about matching the person(s), resources, systems and processes to the requirements of a procurement activity—ensuring sufficient expertise is in place to carry out the procurement successfully.
Complexity and capability assessments are considered together so that an organisation can work out what level of procurement activity it can execute and manage with its existing resources and where additional or specialist capability may be required.
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