“81% of Leaders agreed that their category management process prompts category teams to identify breakthrough value opportunities”
Having a category management process that identifies breakthrough value opportunities is one of the four key measures of category management performance.
81% of leaders strongly agree or agree that their category management process prompts category teams to identify breakthrough value opportunities. This compares with 50% of followers.
5% of the leaders strongly disagree or disagree that their category management process prompts category teams to identify breakthrough value opportunities, compared with 22% of followers.
Very similar results were achieved in the 2014-15 survey.
Ultimately category management is about finding additional value for the organisation throughout the full value chain from downstream customers, right upstream from first tier suppliers and onwards. This could take the form of relatively small incremental improvements through to breakthrough opportunities that challenge the status quo and provide new ways of doing things. The process and toolkit needs to support the identification of breakthroughs in a systematic way with a common language that can be used across the team and stakeholders. The leaders have again made more progress in this area, with the majority believing their process prompts category teams to identify breakthrough value opportunities.
New Year’s Resolution No. 24 : A classic ‘last’ in our advent calendar ‘but most definitely not least’. If your Category Managers don’t talk about Price, Cost, Revenue and Risk terms with their stakeholders then they are not being business people, who happen to do procurement. If they just talk Cost, or worse just price, then opportunity will likely still be very high. Consider bringing in a third party to do a review of the opportunity (see Window 2 for more on this) or at the very least use the Future Purchasing Value Levers framework below and during a workshop identify which Value Levers you are using across all your key categories. You might find the results illuminating.
Talking of illuminating, it is Christmas Eve and we find the lights are truly switched on, and it’s time to stop thinking about Procurement Transformation and Category Management and concentrate instead on friends and family.
Have a very Merry Christmas and I wish you all a peaceful and happy New Year! I look forward to hearing from you all then and finding out what our profession can further achieve in 2017.
Merry Christmas and a Happy New Year.
You can click below to download our 2016-17 Global Category Management Leadership Report Executive Summary.