Many sophisticated Procurement Functions are implementing Category Management best practices and proven methodologies to migrate “from good to great”. This is usually triggered as the current operating model is focused on the delivery of predominant tactical delivery of value;
While developing a strategic Category Management approach channels procurement resources and services towards improved efficiencies and effectiveness for the betterment of internal and external stakeholders.
With the following major benefits:
Category Management benefits the entire organisation
- Raises the strategic contribution of procurement to business
- Improves stakeholder buy-in to results
- Improves total cost of ownership
- Reduces risk in the entire supply chain of contracts
- Uses resources more effectively
- Fulfils stakeholder needs in terms of availability, quality, and service levels
- Fosters supplier innovation and capability development
Category Management Approach
The methodology and approach to strategic procurement involves robust research, analysis and planning that results in a procurement strategy that influences and shapes the market to meet your needs.
This approach demonstrates how:
• Research and planning add value to sourcing, implementation and results
• Collaborative cross-disciplinary team work leads to strengthened solutions
• Good governance and project management ensure delivery is on time, on budget and to specification
• Professionalism and ethics support due process, accountability and transparency.
This approach to Category Management is initiated with a baseline review to capture the Vision and Objectives clearly, while undertaking a detailed Stakeholder engagement exercise. The forensic spend analysis then follows against key levers and assessment frameworks. Prior to discovering the competency, maturity and capability within the team plus an expert review of the entire process flow of current procurement activities on-and-off-line. A number of key milestones will be planned throughout the program where gap analyses will provide current challenges and issues, and risks that need to be addressed or be aware of. Practical reports and recommendations will emerge throughout to focus on the potential benefits to implementing Category Management while guiding the entire project roadmap.
This approach has been successfully implemented in many projects with IDDea and the following key procurement levers used in our Category Management analysis, also enlighten the powerful work of the Procurement Transformation Institute;
Talk to us today to discuss how we can support your Category Management journey;