Future Purchasing Advent Calendar Window Twenty Two

Posted 22/12/2016

“Followers only have 34% of their total spend covered by category strategies compared with 64% for Leaders.  Ground for improvement.”

A key performance indicator that reveals how well category management has been adopted by an organisation is the proportion of spend covered by category strategies.  The survey shows that leaders have category strategies in place for an average of 64% of total spend, compared with an average of 34% of followers. The leaders have improved since the 2014-15 survey, where they had an average 59% of spend covered by category strategies. In contrast, the performance of followers has reduced from 2014-15, when they reported a strategy coverage of 43%. The gap between Leaders and Followers is beginning to grow.

New Year’s Resolution No. 22:   Assess what % of your total spend you have a robust category strategy for.  Be challenging to yourself, just because you have put a long term deal in place does not mean you have a category strategy in place.  A category strategy would have been pulled together within a cross functional team.  Based on evidence gathered through research and analysis, plus imagination from colleagues some strategic options would have been generated, and evaluated.  And an implementation plan pulled together, which is delivering.  So assess where you really are, and put in place a realistic target to increase category strategy coverage over the next 1-2 years.  As this is a key indicator of category management success and adoption, it needs focus.

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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