Viewpoint October 2013

25/10/2013

Future Purchasing Viewpoint
Simon Brown

Simon Brown

Director, Future Purchasing

Welcome to the October edition of our FP Viewpoint in which we answer the question “Is Category Management more than just Strategic Sourcing?”

We believe that Category Management is much more than just Strategic Sourcing. It incorporates the three interrelated Procurement processes of Category Planning, Strategic Sourcing and Supplier Management. This covers the whole end-to-end Procurement cycle from initial customer needs to product and service delivery and beyond into supplier value delivery.

For more information on how to set up a more comprehensive approach to Category Management, please see our new video on the subject that outlines five building blocks for successful implementation of Category Management.

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Please get in touch with all feedback on:

+44 (0) 7961 110529 or email

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Category Management

We are working with a number of clients who see that applying category management principles and ways of working to their external spend is the best way to deliver significantly improved financial results.

For more details on Category Management please read our recent 2012-13 survey into Category Management best practice

“Is Category Management more than just Strategic Sourcing?”

Our 2012-13 Category Management Survey demonstrated that many organisations still see Category Management as simply another term for Strategic Sourcing. Only 10% of our survey respondents confirmed they had Category Planning as part of their Category Management activity. This is certainly a surprising finding

At Future Purchasing we see Category Management as a much broader concept that incorporates three key Procurement activities – Category Planning, Strategic Sourcing and Supplier Management.

  • Category Planning : annual planning of sourcing & supplier management activities. Creation of a pipeline of category projects.
  • Strategic Sourcing :creating & implementing category strategies to deliver cost savings and other value.
  • Supplier Management : proactive post contract management of supplier performance to deliver value improvement from suppliers.

For more information on how to set up a more comprehensive approach to Category Management, please see our new video on the subject that outlines five building blocks for successful implementation of Category Management.

How to Benchmark your capability in Category Management?

FP can help you to confirm the scale of additional benefit available to your organisation by optimising category management.

We can compare you against “world class” performance and confirm what you need to change in order to optimise Category Management and advance to the next level of performance.

The process takes approximately five days and the report will identify your strengths and weaknesses and a customised roadmap to optimise Category Management in your organisation.

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