Category Management

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Category Management

Argues that successful adoption of a fast, flexible process is a core competence of procurement.

criticality-of-investment-in-category-management
This extract from the FP 2016-17 Category Management Leadership Report focuses on the criticality of investment to drive category management programme and the importance of using some of that funding to support a central team
2016-17 Category Management Report Stakeholder Commitment Highlights
This extract from the FP 2016-17 Category Management Leadership Report focuses on the value of setting joint objectives with stakeholders for category management and having joint accountability for delivery
Top Category Management Practices to Align with the Business
This extract from the FP 2016-17 Category Management Leadership Report focuses on the practices that align category management with the business and ensure that category management is a business capability, rather than functional procurement process.
Category Management Leadership Report - The Business Case
This extract from the FP 2016-17 Category Management Leadership Report focuses on the business case for category management and a fantastic new model that confirms the impact of category management on company performance.
Modulation – The Key to Making Category Management Apply to 100% of Spend
This insight guide identifies the consequences of applying category management inflexibly and the benefits of adopting a modulated approach. An example modulation approach is included.
How to Reduce Implementation Value Leakage
This insight guide is the second in a series on implementation. In this Insight Guide we look at how value also leaks out during the implementation phase due to lack of rigour and we outline three activities that substantially reduce implementation value leakage
How Much Does Implementation Matter?
This insight guide is one in a series on implementation. This is a this critical, but rarely analysed topic. This first Insight Guide builds the business case for implementation by consolidating research and our consulting experience to quantify the value leakage that typically occurs in category management. This is money that has been “found”, but fails to be “got” or “kept”!
2014-15 Category Management Report Deliver Extract III
This is the third extract from the DELIVER section of the FP Category Management Survey. It provides an overview of the FP Value Levers Model and details the extent to which the different value levers are used by Category Management Leaders and Followers
2014-15 Category Management Report Deliver Extract II
This is the second extract from the DELIVER section of the 2014-15 FP Category Management Survey. It details the quality of category strategies achieved by survey respondents and the extent to which category targets are jointly set with stakeholders.
2014-15 Category Management Report Deliver Extract
This is an extract from the DELIVER section of the 2014-15 FP Category Management Survey. It details the savings levels achieved by survey respondents and the scale of additional savings they believe are achievable by optimising their Category Management approach.
2015 Category Management Leadership Report | Executive Summary
Our Category Management Leadership Report 2014-15 addresses the question, "What makes a Category Management Leader"? Download now to read how Category Management Leadership unlocks 49%–111% more value by transforming the partnership between procurement, business and suppliers.
2014-15 Category Management Report APPLY Extract II
This is the second extract from the APPLY section of the 2014-15 FP Category Management Survey. It includes specific findings and recommendations for Category Managers to ensure category projects deliver their target savings and to their target timelines.
2014-15 Category Management Report APPLY Extract
This is an extract from the APPLY section of the 2014-15 FP Category Management Survey. It includes specific findings and recommendations for Category Managers on how they can apply the process to achieve Category Management Success
2014-15 Category Management Report LEAD Extract II
This is an extract from the second LEAD extract from the 2014-15 FP Category Management Survey. It includes specific recommendations for strengthening support from Procurement leadership and stakeholders for Category Management.
2014-15 Category Management Report LEAD Extract
This is an extract from the LEAD section of the 2014-15 FP Category Management Survey. It includes specific findings and recommendations for clarifying roles and responsibilities for Category Management and the importance of category sponsors.
2014 Category Management Report Learn Section II
This is an extract from the LEARN section of the 2014-15 FP Category Management Survey. It includes specific findings and recommendations for building stakeholder support for Category Management and ensuring coaching is used to embed learning.
2014 Category Management Report Learn Section
This is an extract from the LEARN section of the 2014-15 FP Category Management Survey. It includes specific findings and recommendations for developing competence frameworks and ensuring that training gets rated as “Excellent”.
2014 Category Management Report Build Section
These are the key findings from the BUILD Section from our 2014-15 Category Management Survey
2014 Category Management Report Overview Section
This is the first section of the 2014-15 FP Category Management Survey. It includes the seven priority best practices that drive Category Management performance and Category Management capability ranking by industry sector
What’s Trending in Category Management Today?
This one page summary provides some of the key headlines and statistics from the 2014 Category Management Survey – including the additional value available from optimising category management, level of spend covered by category strategies and the proportion of respondents that consider themselves as Category Management Leaders.
Building a 'Procurement Ready' Knowledge Base Part 1 | DILF Article
This article will be of interest for those organisations that are looking to build or enhance their data analysis capabilities. We provide clear definitions and overviews for 16 different types of spend analysis and knowledge that leading organisations use
Building a 'Procurement Ready' Knowledge Base Part 2
Tier 2 Procurement Ready knowledge is specialised data & provides truly leading edge insight & category strategies that fully connect with the business. Example Tier 2 knowledge defined here inc. : Unitisation, Specification Mapping & Consumption Profile.
Building a 'Procurement Ready' Knowledge Base Part 1
This insight guide, based on recent client experiences, defines the two tiers of ‘Procurement Ready’ knowledge that leading organisations use to identify opportunities and build leading best-in-class category strategies
Category Management Success - A View From Senior Procurement Leaders
A summary of Future Purchasing's 2013 CPO round table discussions, exploring the approaches taken by those who are driving procurement performance at some of today’s leading businesses.
Is Category Management More than Just Strategic Sourcing?
Reinforces the view that Category Management is about the integration of Category Planning, Strategic Sourcing and Supplier Management to deliver improved value to an organisation.
Benchmark Your Category Management Performance
Further research with Professor Marc Day of Henley Business School that identifies Category Management performance by industry sector and confirms which best practices drive superior Category Management Performance.
Category Management Survey 2012 - 2013
This report identifies the leading practices that drive Category Management performance and the 46% extra savings that Category Management Leaders deliver versus Category Management Followers
Category Management report part 6
In Part 6 we share findings that cover the DELIVER building block. It deals with the results that a category management programme delivers to an organisation.
Category Management report part 5
In Part 5 we share findings that cover the APPLY building block. APPLY refers to the practical running of a Category Management programme covering all procurement projects underway across an organisation. This includes essential aspects of programme management.
Category Management report part 4
In Part 4 we share findings that cover the LEAD building block. LEAD refers to the governance and operating model that embeds Category Management in an organisation, and ensures benefits for the long term.
Category Management report part 3
In Part 3 we share findings that cover LEARN building block i.e. the way that organisations train and educate their staff in using the Category Management process and toolkit in the most effective way.
Category management report part 2
In Part 2 we share findings that cover the BUILD i.e. the initial design and creation of the core Category Management process and toolkit
Category Management Report Part 1
The 2012 Category Management survey provides detailed insight into the best practices that differentiate Category Management Leaders from Followers. We have designed the report in a modular format based on the FP Category Management Building Blocks.
FP Category Management Survey 2012 - Key Findings
This one page summary provides some of the key headlines and statistics from the 2012 Category Management Survey – including: the additional value available from optimising category management, level of spend covered by category strategies and the proport
Refreshing the Category Management Process
Category management has been the cornerstone of procurement excellence for more than a decade, but in many firms it has lost touch with business needs. This CPO Agenda article (Spring 2009) covers how premium drinks maker Diageo put some fizz back into a
Five Laws of Category Management
This DILF Orientering article (October 2010) outlines five critical success factors of category management including internal alignment, careful planning, stakeholder outcomes, good programme governance, and a well trained team.
CPO Communiqué: Quick Wins & Speed Sourcing: Productivity & Demonstrable Results
CPOs regularly revisit quick wins with their teams. This Communiqué: describes the key steps.
Case Study: LG Electronics.
CPO Communiqué: Five Laws of Category Management
Category management is the heartland process of modern professional procurement. Here are five golden rules.
Case Study: GSK.
Insight Guide: Category Management & Sourcing Strategy: Using Source Plans as Business Plans
Emphasises the role of structured source planning as a critical building block of procurement competence and distinguishes between three types of plan.
Insight Guide: Embedding Strategic Sourcing in the Organisation
Highlights the critical success factors for successful implementation of strategic sourcing.
Insight Guide: Measuring the Success of Category Management
Focuses on the indicators of world class category management capability that lead to successful change programmes in procurement.
Insight Guide: Engaging Stakeholders and Creating a Pipeline of Sourcing Projects
Covers the formalisation of the category planning approach in order to build a category wave plan.
Insight Guide: Maximising Value from Category Management: First Law
Outlines the typical sources and levers of value which can be achieved from category management through full internal alignment.
Insight Guide: Proactively Managing Change in Category Management: Second Law
Outlines the typical issues that need to be proactively managed by Procurement teams in order to drive successful category management.
Insight Guide: Outcomes Led Approach to Category Management: Third Law
Identifies the key factors to move from a traditional procurement approach to an outcomes led category management approach.
Insight Guide: Programme Governance in Category Management: Fourth Law
Outlines the critical success factors for good programme governance in category management.
Insight Guide: Critical Category Management Activities: Fifth Law
Identifies the 15 critical activities that need to be managed persistently, robustly and successfully within a “best in class” category management process.
Insight Guide: Lean Category Management, Part 1
Describes how to apply lean thinking to the development of a category management process.
Insight Guide: Lean Category Management, Part 2
Summarises the implications for applying lean principles to building and applying category management processes.
Insight Guide: Category Management - Avoiding Savings Leakage
Identifies ways that procurement teams can reduce the 40% difference between their claimed savings and the actual realised value.
Insight Guide: Updating & Refreshing Category Management Processes
Outlines 10 guiding principles to follow when updating and refreshing a category management process.
Insight Guide: Flexible Application of Category Management Process
Identifies how to use technology to provide different routes through the category management process, ensuring it can be applied to all categories and suppliers.
Insight Guide: Project Management Tools for Category Management
Details the five project management tools that are essential for keeping category management projects on track.
Insight Guide: Creating a Category Management Dashboard
Outlines the typical approaches used and issues encountered with sourcing scorecards.
Insight Guide: Importance of Governance in Category Management
Provides a typical governance structure for strategic sourcing projects and seven keys to success.
Insight Guide: Five Building Blocks of Category Management
Provides a summary of the five building blocks for best practice category management.
Insight Guide: Ten Ways to Improve Strategic Sourcing
Provides some pointers to making sourcing strategy more strategic, while addressing ten structural weaknesses that Future Purchasing has identified within major companies.
Insight Guide: Creating World-class Sourcing Strategies
Outlines the key content for a world class sourcing strategy and the enablers for strategy development.
Risk Management & Sustainability

reviews the emerging field of enterprise-wide risk management.

Equipped for a Bumpy Ride: Commodity Risk Management
A sustained period of volatility in commodity markets demands that procurement develop a more disciplined approach to managing cost risk. CPO Agenda article (Autumn 2008).
CPO Communiqué: Risk Management, Part 1: Enterprise-Wide Strategy as the Starting Point
Provides a 20-point checklist for aligning procurement practice to enterprise-wide risk management.
Case Study: Procter & Gamble and Ryanair.
CPO Communiqué: Risk Management, Part 2: Six Major Risk Management Strategies
Covers six major generic risk management strategies, together with three examples of each.
Case Study: Hewlett Packard.
CPO Communiqué: Risk Management, Part 3: Addressing Supplier Insolvency & Disruption Risks
Argues for a strengthening of procurement risk management at a time of worsening macro-economic trends due to deficit reduction and unsustainable sovereign debt.
Case Study: Tetra Pak.
CPO Communiqué: Risk Management, Part 4: Value at Risk (VaR): Methodology or Mind-Set?
Assesses the relevance of value at risk (VaR) methodologies and how best to apply them in procurement.
Case Study: BP.
CPO Communiqué: Risk Management, Part 5: Deep Values and Behaviour vs. Executional Practice
Draws together key operational risk management requirements as well as a number of deeper concerns about complacency over enterprise risk in the supply chain.
Case Study: Olympus
CPO Communiqué: Copenhagen (Dis)ac(cord)
Summarises the outcome of climate change negotiations and business leader reaction.
Case Study: Tesco & Wal-Mart.
CPO Communiqué: Sustainable Sourcing: Positioning Best Practice on a Value Curve
Positions sustainable sourcing on a performance value curve and benchmarks emerging practice.
Case Study: AkzoNobel.
CPO Communiqué: Responsible Sourcing
Continues the debate on sustainability and provides feedback on CPOs' views.
Case Study: Toyota.
Insight Guide: Risk Reduction Through SRM
Outlines how SRM is a key tool for reducing ongoing supply risk as well as reducing costs and maximising value.