Future Purchasing Advent Calendar Window Six

Posted 06/12/2016

“Level of resource in the central team is the third highest driver of category management performance.”

Now the central team may vary depending on what sort of organisation you work for from a small one or two people who support processes, systems, analysis right through to a central team for a massive global procurement organisation that might have global category leaders, and global governance, training, systems and research specialists.  Across the 320+ organisations that took part, the overall consensus was that the central teams are not resourced enough. In fact, only 28% agreed that the central team driving out category management programme is fully resourced to meet the needs of their category teams.

Category management needs to be driven by a Procurement leader who is passionate about its value, fully understands how it works, has the resources to execute it and the vision and energy to implement it. Resources are a critical success factor both in terms of the quantity and also the quality. Quality can be improved through education and coaching support. Quantity has to be accessed through ROI discussions, re-deployment of existing team members or recruitment of other dedicated staff to drive the programme (these don’t have to be permanent staff).

New Year’s Resolution No. 6: If you don’t have a central enabling team, consider setting up a small programme office at the start of a category management programme to provide structure, rigour, project planning, programme governance, benefits tracking, a communications hub and support for the category teams.  Don’t forget with the digital disruption that is upon us, to ensure someone is proactively and strategically considering this question centrally too as that will be truly transformational in just a few years.  If you do have a central team in place, reconsider whether it does all the items listed, and brainstorm what further things would enable the category teams to get on with their job as efficiently and as effectively as possible. Why not get out there and ask those category teams their needs, and wants, for further ideas? As one of the top drivers of category management performance, and at 28% only agreeing this central team is adequately resourced, this gap surely can’t be ignored.

You can click below to download our 2016-17 Global Category Management Leadership Report Executive Summary.

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

  by Allison Ford-Langstaff

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