Future Purchasing Advent Calendar Window Seven

Posted 07/12/2016

“The 4th highest driver of category management performance is agreeing an annual strategic plan with stakeholders - 48% are doing it well”

Our analysis identifies that agreeing a pipeline of projects with stakeholders is a top driver of performance and should be targeted as a priority practice by the 52% of organisations that do not currently use it. Overall, 48% of all respondents strongly agree or agree that they have an annual plan of category projects that has been agreed with stakeholders.

The survey demonstrates that 67% of Leaders strongly agree or agree that they have an annual plan of category projects that has been agreed with stakeholders, compared with just 41% of Followers.

17% of Leaders said they did not have an annual plan of category projects that has been agreed with stakeholders, whereas 33% of Followers felt that this was the case.

By jointly planning and agreeing the pipeline of activity on an annual basis, procurement is more likely to be made aware of future business plans and be involved at an early stage. Also, business approval of the pipeline makes it more likely that necessary technical resources are made available for category teams.

The survey results indicate that this is a practice used by Leaders and Followers. It is better embedded in leading organisations and they often brand the approach ‘ category group planning’ or similar.

New Year’s Resolution No. 7:   Leaders create an entirely separate process to identify and agree with stakeholders an annual pipeline of category management projects. It has similarities with category diagnostics and opportunity analyses undertaken by consultancies to help identify the scale of savings available. However, this is completed by senior members of the procurement team along with senior stakeholders. It provides an opportunity to understand the strategy, objectives and plans of the business and to align category activity with these. Note: this is not just a simple list of ‘stuff to do’ which many Follower organisations will do to one degree or another.  This is a careful planning process that thinks through which core resources would need to work on a particular project for how long, and to what end.  If you haven’t got a process like this, create one yourself or get external help to provide you with one.  Align the timing of this around 3-4 months before annual budgets are targeted to be finalised. And finalise with formal objectives for all those involved to ensure everyone has ‘skin in the game’.

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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