“66% of Leaders agree their category management approach is their one 'way of working' for all procurement activity”
Our analysis places this as the 14 th most important driver for category management performance and success. Leaders have clearly made significant progress in this area, with 66% agreeing to some extent that it is their ‘one way of working’. Only 42% of followers share the same positive perspective, with 33% of followers disagreeing with the statement.
The 2014-15 survey identified very consistent results for followers. However, there has been a significant reduction in the leaders results – down from 87% reporting category management as the "one way of working" for all procurement activity. This itself is a reduction from the 92% reported in the 2012-13 survey.
Category management is the core way of working for most procurement teams. It provides the foundation for all procurement activity by defining key tasks and how they should be undertaken. It provides a common language and ensures that a consistent approach is deployed to deliver value to from supplier spend.
New Year’s Resolution no. 17:
Leaders make category management their ‘one way of working’ by driving all
activity through a single category management structure and process. If you
don’t have a single category management process, with guides, templates and tools,
get one: this is Category Management 101. Either buy it in, or create it yourself
but remember if you create it yourself this will take a lot of time, when your time
might be more valuably applied creating value for the business rather than process.
Ideally have this housed on-line – manual category management processes are now quite
clunky and out-of-date in this digital age, and slows teams down.
Remember to consider the wider aspects of making this process work. This isn’t just the domain of the procurement function, but requires a wider business readiness for a focussed category management approach. Establishing the maturity of procurement capability across key areas such as Business Alignment, Structure and Governance, Leadership, People & Team Strength, Process Excellence & Technology and Category & Supplier Management processes are a key five of 10 I would recommend. Conduct a gap analysis of where you are now, and where you need to be to realise the strategic objectives of the business and plan realistically how you will close the gaps.
You can click below to download our 2016-17 Global Category Management Leadership
Report Executive Summary.