Category Management: Building category management capability through process design, training & coaching

Business Situation

What was the problem?

Solution Implemented

How did FP resolve it?

Benefits Delivered

What was delivered?
  • Declining pipeline of new products and increasing costs
  • No standardised sourcing process being used
  • Procurement team not involved in many areas of spend and seen as “order raisers” or contract administrators.
  • New CPO appointed to transform Procurement into a strategic unit.
  • High level procurement strategy designed with the new CPO
  • Quick wins programme set up to generate savings.
  • New category management process & toolkit designed.
  • Customised education programme implemented for Procurement team
  • Coaching support organised for individual sub-category projects.
  • Savings of £6m (11%) delivered over a 12 month period.
  • Category management way of working embedded in the business.
  • Procurement team up-skilled and building much better stakeholder relationships in the business.
  • Procurement seen as a positive enabler of change.

 

Examples of Cost & Value Opportunities Delivered:

Savings on telecommunications category via a competitive tendering process.
Savings in lab consummables, 50% reduction in suppliers, much improved level of service provided to the end users.
Cost saving in recruitment services with improved frame agreements with preferred suppliers.
Savings by consolidating lab service contracts through three main suppliers instead of 120 suppliers previously.
Cost savings by changing the Canteen provider together with improved service guarantees.

Approach Used to Facilitate & Coach Category Managers through the Process


Tagged by topic: Category Management

Tagged by Sector: Pharmaceutical and Healthcare

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