Future Purchasing Advent Calendar Window One

Posted 01/12/2016

“80% of organisations see category management as one of procurement’s top 3 priorities but universally it is not being done well.”  

We had over 320 organisations participate in our research globally, across 14 sectors.  We found that category management is clearly growing in popularity but levels of maturity and standardisation vary widely, resulting in missed opportunities. Just 28% of organisations consider they are “leaders” in category management (i.e. their category management processes are embedded and/or optimised).  We identified the key cause of this immaturity is lack of stakeholder alignment, engagement and collaboration across the business. 

New Year’s Resolution No. 1: Get hold of the organisation’s strategy (which usually will identify key objectives over the next 3-5 years) and identify 20-30 key stakeholders, including board members across the business to ask them about procurement, and how it fits with the strategy. Ask them what they think works well, what they think could work better in the next year, and what they think could work better over the next 2-3 years (to align with the remaining period on the corporate strategy) to access value.  Objective: to get them thinking about procurement and the possibilities.  Half of the opportunity the procurement profession faces is that many stakeholders consider procurement is a simply hygiene activity and simply don’t give it as much thought and time as they do on increasing revenue, or internal efficiencies.  So, part of what you would be doing here is subtly educating the business.  Note of caution:  Make sure the person doing the ‘interviews’ is a procurement expert and is going to open up the dialogue strategically.  Remember to come across as a business person who happens to work in procurement, not the other way around. 

Some of the later Advent windows open up to show you the Top 5 drivers of category management success – then the remaining ‘top 10’ – and the rest to achieve the ‘Top 19’.  Yes, I did say 19! as identified through our analysis with Henley Business School. Each window has a stated fact from the research, some commentary and a suggested New Year’s Resolution for you.  

In the meantime, you can click below to read the Executive Summary.

Tagged by topic: Category Group Planning , Category Management , Category Management Survey

  by Allison Ford-Langstaff

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