Category Management: How FP helped a Pharmaceutical company to build category management capability through coaching

Business Situation

What was the problem?

Solution Implemented

How did FP resolve it?

Benefits Delivered

What was delivered?
  • No previous experience of using category management.
  • Inexperienced Procurement team with limited previous training.
  • CPO wanting to drive a change programme using category management as a key enabler.
  • Small but geographically dispersed Procurement team
  • Joint FP/Client design team set up to develop a new category management process & toolkit.
  • Client education programme implemented for Procurement team.
  • Post workshop facilitation & coaching organised for individual sub-category projects.
  • Remote coaching set up for Asian Procurement team.
  • Average of 14% savings on category management projects.
  • Self confidence and procurement skills of the team increased .
  • Profile of Procurement raised within the company.
  • Stakeholder feedback was very positive with increased level of demand for procurement involvement in other projects.

 

Examples of Cost & Value Opportunities Delivered:

savings on packaging used to transport the Company’s end product.
savings in lab supplies, 30% reduction in suppliers & much improved level of service provided to end users.
cost saving in raw material that had been “aggressively sourced” bought for many years.
saving by outsource of laboratory dishwashing service to external supplier.

Approach Used to Facilitate & Coach Category Managers through the Process

Step 1 – Project Initiation Step 2 – Research & Analysis Step 3 – Opportunity Development Step 4 – Supplier Selection
Project Governance (2 days)
  • Stakeholder map
  • Category team statement
  • Project plan

Subcategory Team Kick Off (2 days)
  • 0.5 day planning & prep.
  • 1 day kick-off meeting
  • 0.5 day follow-up & planning
Subcategory Profile (1 day)

Business Requirements (1 day)
  • 1 day planning & prep.
Supply Market & Supplier Analysis (1 day)
  • 1 day review of data and Challenge team’s efforts
Cost Analysis (1 day)
  • 1 day to review cost model & price analysis
Strategic Analysis (1 day)
  • 1 day complete positioning analysis
Options Meeting (2 days)
  • 1 day planning & prep.
  • 1 day options meeting
Sourcing Strategy (1 day)
  • 1 day to review sourcing strategy
Supplier Selection Process (1 day)
  • 1 day to review supplier selection approach
Negotiation Planning & Support (2 days)
  • 1 day planning & prep.
  • 1 day follow up
Contract Award (1 day)
  • 1 day to review contract
Total: 4 days Total: 4 days Total: 4 days Total: 4 days

Tagged by topic: Category Management

Tagged by Sector: Pharmaceutical and Healthcare