“One of the Top 10 drivers of category management success is reviewing strategies regularly. 60% said they don’t do it often enough”
A thoroughly researched and professionally prepared category strategy has distinct parallels with a marketing brand plan or a new product development plan. As such, they are critical activities within the overall procurement business plan, and should be challenged and reviewed regularly, not just by procurement but by other connected business colleagues. The way in which the governance and challenge process is constructed is one test of “best in class” procurement and is a key to success in organisational acceptance and support for category management.
Overall 40% agreed they reviewed category strategies regularly. This increased to 55% amongst the Leaders, compared with just 34% amongst the Followers. So there is significant scope for improvement.
New Year’s Resolution No. 10:
If you don’t already, put in place a timing mechanism to review your category
strategies. As a general rule of thumb, a review at least once every 3 years
is good practice. More, if it’s a highly volatile category. And don’t forget
it’s not the fact it is done you need to think about, but the way it’s done – cross
functionally ideally with an identified sponsor or Accountable Executive ideally
within the business. A quick review by the line manager to tick a box, won’t
cut it. Sorry!