Making Category Management a priority:

Dave HenshallCategory Management, Governance & AlignmentLeave a Comment

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:

5 steps to make category management a priority

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
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Develop your Team

Making Category Management a priority:

CPP can help you in “making category management successful” through:

Change Management:

Supporting your initiatives through performance benchmarking, business case development, strategy creation, organizational design and program coordination.

Process Rigor:

Embedding defined processes and world-class materials in category management, strategic  sourcing, and supplier relationship management.

Capability Development:

Building high-performance teams through skills assessment, e-learning, virtual classrooms and face to face training for all who interface with suppliers.

Implementation:

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.