Making Category Management a priority
To make Category Management a priority, executive teams must provide backing in terms of financial investment, physical resources and visible involvement. We provide 5 steps to making category management a priority in your business:
1. Create a vision, strategy, business case & ROI:
- A clear vision for enterprise-wide adoption.
- Incorporation of key principals
- Credible business case with high ROI
2. Secure executive sponsorship:
- Clear visible support via direct executive sponsorship with a strong mandate to act.
- Link initiatives closely to business leaders who are ready to act as sponsors of high profile category programs.
3. Align with business strategy:
- Category Management must be integrated with the business strategy and planning cycle and directly connected to other high profile initiatives.
- Align delivery expectations with capability maturity
4. Create an investment plan:
- Get approval for an investment plan to develop procurement capability, including physical resources and process adoption in line with the targeted ROI.
- Develop a delivery roadmap showing benefits at 6/12/24 months.
- Savings can be found as high as 30% on under managed categories of spend through:
- Closer and more constructive relationship with key business stakeholders
- Focused attention on the planning phase which offers the greatest scope for improved performance and ground breaking solutions
- Enables realistic targeting of savings and other benefits which are agreed with and owned by the business
- Maximizes contract compliance through stakeholder ownership and business sign off
- Enhances procurement capability within the procurement function and across the organization
5. Develop individual & collective competency:
- Use assements with high credibility and validity.
- Develop clear roles and responsibilities
- Close skill gaps of procurement teams via education and targeted coaching.
- On-going development program.
- Measure learning and capability development
Making Category Management a priority:
CPP can help you in “making category management successful” through:
Supporting your initiatives through performance benchmarking, business case development, strategy creation, organizational design and program coordination.
Embedding defined processes and world-class materials in category management, strategic sourcing, and supplier relationship management.
Building high-performance teams through skills assessment, e-learning, virtual classrooms and face to face training for all who interface with suppliers.
Supporting your program management, team facilitation, performance measurement, benefits tracking and securing financial results.
Nuff said …
If you you would like to learn more about how we can support your Making Category Management Successfull program contact us for a conversation.