Working on the right category and supplier projects with the best return on investment (ROI) is crucial for procurement category management success. This requires collaborating with your internal business stakeholders and fully understanding their strategies, plans and budgets. This is the foundation for building a joint pipeline of category and supplier projects for each category group that is fully supported by the business. Creating a category group plan is a clear differentiator between leaders and followers in Procurement.
The 4th top practice in our recent Category Management Leadership Report was the creation of an annual plan of category & supplier projects that is agreed collaboratively between procurement and stakeholders. Category Group Planning key features are:
Identifying suitable projects is often either a ‘black box’ activity with little input from stakeholders or an unplanned process where procurement responds to last-minute stakeholder requests. The misalignment between procurement and business stakeholders results in the following:
Our recent survey results indicate that category group planning is not embedded in many organisations with only 6% of leaders claiming that their approach is excellent.
FP recommends formalising a joint prioritisation approach with stakeholders that is aligned with the business planning cycle. This category group planning approach helps to build an agreed pipeline of category & supplier projects for the next 12 month with your stakeholder teams. Specific areas of focus should include:
How I learnt to plan my category project activity more effectively
“The practical nature of the methodology and the well-equipped toolkit with built-in
flexibility worked really well for me.”
“Defining the work a Category Director should be doing versus a Category Manager was invaluable.”
“Having a uniform way of creating the category group strategies will be helpful in driving forward the need for stakeholder mapping, supply market segmentation and gathering stakeholder requirements. Feel fired up and ready to do it. Cannot wait to get some meetings set up with team and get cracking.”
Category Directors, Hotel Group
Request a free of charge consultation.
After you show us how category group planning operates in your business, we can walk you through the steps you need to take to transform your category group planning performance and rapidly increase your return on investment.
|Blog Post:||Collaborate Or Give Up On Category Management|
|Blog Post:||Ready, Steady, Go! Setting Objectives That Fire Up Your Business Teams|
|Knowledge Hub:||Engaging Stakeholders Creating a Sourcing Projects Pipeline|
|Knowledge Hub:||Category Management and Strategic Sourcing: Use Source Plans as Business Plans|
|Case Study:||Creating Category Plans|