Implementing Category Management - CIPS Managemen… · Sourcing –process, tools & templates...

© Copyright Future Purchasing, 2011

Duncan Brock– Future Purchasing

Implementing Category Management

[email protected]: 0118 978 2287m: 07961 125519


Category management is:

A structured process to maximise

value from an organisation’s total

supplier spend

Covering:

Category Sourcing

Supplier Management

Category Planning

What is Category Management?


Approaches to developing Category Strategies


Category Management – The Benefits

Third Quartile

ThirdQuartile

SecondQuartile

FourthQuartile

FourthQuartile

SecondQuartile

Firstquartile

Quality of Category Management

Addressable Spend

0 L M H

5% +

3% - 5%

1% - 3%

< 1%

< 25%

25% - 50%

50% - 75%

75% - 100%


CIPS Category Management Process

Activity

7. Historical Spend Profile

8. Forecast Spend Profile

9. Whole Life Costing

10. Business Requirements

11. Supply Market

Research

12. Supply & Value Chain

Analysis

13. Market Forces Analysis

14. Supplier Profile

15. Supplier Financial

Analysis

16. RFI

17. Non Disclosure

Agreements

18. Portfolio Analysis

19. Supplier Perception

Analysis

20. Options Generation

21. Risk Assessment

Activity

22. Sourcing Strategy

Activity

23. Supplier Selection

Process

24. Statement of

Requirements

25. Contract Terms

26. Service Level

Agreements

27. RFP’s

28. Auctions

29. Proposal Evaluation

30. Negotiation

31. Business Benefit

Measurement

32. Contract Award

33. Supplier Transition

34. Project Review &

Closure

Activity

35. Contract Administration

36. Contract Management

37. Performance Scorecard

STEP 4

ImplementCategory Strategy

STEP 5

Maintain

STEP 1

Initiate/ Prepare

STEP 3

Prepare/Present Category Strategy

STEP 2

Identify & prioritise Opportunities

STEP 6

Improve & Enhance

Activity

28 Supplier Review Meetings

39. Supplier Development

40. Sustainable Procurement

DG2

DG3

Activity

1. Project Charter

2. Stakeholder Engagement

3. Project Governance

4. Project Planning

5. Kick-off Meeting

6. Quick Wins

DG1


To maximise value from Category Management:

Guiding principle 1 --- Value Creating

Guiding principle 2 --- Facts and Data Driven

Guiding principle 3 --- Consistent Application

Guiding principle 4 --- Flexible Application

Guiding principle 5 --- Cross-Functional Working

Guiding principle 6 --- Easy Access

Guiding principle 7 --- Data Capture

Guiding principle 8 --- Project Management

Guiding principle 9 --- Governance

Guiding principle 10 --- Interactive Environment

Category Management - 10 Guiding Principles


Enables category management

Accelerates savings

Boosts team performance

Increases rigour

Optimises supplier relationships

Improves project visibility

Powering Excellence in Category Management

What does PROCAT do?


Sourcing – process, tools &

templates

Supplier management – process,

tools & templates

Built in approval process

Online management of sourcing

and supplier management

activities

Online Community

Powering Excellence in Category Management

What does PROCAT Provide?


A performance dashboard,

providing up to date

information on all the current

sourcing and supplier

management projects.

1. Homepage

PROCAT: Take a Tour


A comprehensive set of guides

providing a full explanation of

how to use the tools and

templates.

All the templates can be

downloaded and used in a live

environment

2. Process Materials

PROCAT: Take a Tour


The formal means of progress

checking and approval for

each project.

Guidance and templates are

provided to help both the

project team and the people

who are approving the project.

3. Decision gate

PROCAT: Take a Tour


An up to date overview of all

the live category management

projects that the user is

working on.

A number of projects can be

linked together in a programme

to provide additional

management reporting of

progress and KPIs.

4. Project Overview

PROCAT: Take a Tour


A live dashboard is provided for

each project showing the

progress made against each step

of the category management

process, and highlighting

important project information.

5. Project summary

PROCAT: Take a Tour


PROCAT provides discussion

forums for each project, and

also for the wider community

that are using PROCAT.

Email alerts prompt the users

that updates have been made

to their project discussions.

6. Project discussions

PROCAT: Take a Tour

Implementing Category Management - CIPS Managemen… · Sourcing –process, tools & templates...

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