Implementing Category Management

Situation

• Less than 20% spend under management
• No robust sourcing process resulting in week execution
• Procurement function perceived as tactical and not engaged in key spend areas
• Procurement team poorly organized with conflicting responsibilities
• CPO wanted to develop a more effective strategic approach

Approach

• Procurement value proposition developed with the CPO
• High level procurement strategy developed
• Category management process and toolkit designed
• Governance framework agreed
• Training program for the procurement team

Recommendations

• Implementation of a Category Management Structure
• Category Management Process and governance
• Initiatives for quick wins and long term gains
• Training for procurement team

Benefits

• Savings of $5m from first sourcing initiative.
• Robust Category Management processes set up as the new way of working
• Process guides and templates developed
• Increased procurements visibility and business contribution

Client feedback was excellent with increased excitement and motivation apparent from the procurement team.