Viewpoint July 2015

31/07/2015

Future Purchasing Viewpoint
Mark Webb

Mark Webb

Managing Director,
Future Purchasing

Welcome to the July edition of FP Viewpoint.

This month we look at another acid test for the quality of category management – how good are the category strategies created?

Great category strategies help drive change at the category level and are the most important documents that the Procurement team create. They don’t need to be long or complex, but they do need to be compelling and provide a roadmap summarising the opportunities identified by the cross-functional category team

The survey demonstrates that only 3% of respondents feel that their strategies are excellent. The survey also shows that organisations with excellent strategies had performance that was 225% greater than those with the weakest strategies.

Contact from many organisations over the past year, suggests that this fundamental performance opportunity is recognised and being addressed as a priority.

Click to see the “quality of category strategies” findings from the 2014-15 Category Management Leadership Report

Collaborative working is one of the key principles of category management. The best performing organisations ensure that collaboration extends beyond exhortation to more concrete alignment – with stakeholders jointly setting category targets and having accountability for delivery.

Click to see the extent of joint target setting and delivery accountability findings

Call me today to discuss your thoughts:

+ 44 (0)7974 018022 or email

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Future Purchasing can benchmark your Category Management capability using our Catman Adoption Framework™ . This confirms the scale of additional benefit available to your organisation by optimising category management. We compare you against “world class” performance across 100 criteria and work with you to prioritise the improvement areas, develop an implementation roadmap and quantify the additional value available. The process takes 3-5 days and we believe this is the most effective way to start unlocking the 66%-113% additional value available from category management.

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“2014-15 FP Category Management Survey – Two more findings from the DELIVER section"

Today we are sharing two topics from the DELIVER Section from our 2014-15 Category Management Survey

The overall report is structured around the five Category Management Building Blocks we have identified. The DELIVER Building Block is the end results produced by the Category Management activities and programme. It is assessed through a range of metrics such as level of spend penetration, cost reduction and cost avoidance, supplier performance, reduced level of risk, better service and increased sales. The findings we are sharing today cover:

  • What percentage of organisations believe the quality of their category strategies is excellent?
  • How can organisations ensure their category strategies are excellent?
  • Do stakeholders get involved in jointly setting category targets?
  • Do stakeholders have joint accountability for delivering category targets?
  • How can joint target setting and accountability with stakeholders be achieved?

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