Category Group Planning: Creating Category Plans

Business Situation

What was the problem?

Solution Implemented

How did FP resolve it?

Benefits Delivered

What was delivered?
  • CPO of a large European bank identified a need to improve Procurement’s high level category planning capability
  • Procurement’s contribution to the annual business planning cycle was weak.
  • Inconsistent approach to category plans that resulted in variable quality of category plans.
  • FP customised its own category planning process, toolkit and templates to the client needs.
  • FP ran a one day “hands on” category planning training session with PLT members and category managers.
  • FP provided dedicated coaching support to the category managers to help them create their category plans.
  • Category managers presented their category plans to the PLT for validation and approval.
  • Six high quality category plans were created that committed to delivering €21m savings (8.3% of spend).
  • Stakeholders were identified and engaged in the process enabling much greater success in implementation.
  • PLT were able to review the category plans and provide much needed feedback, challenge and support.
  • There was a lasting legacy of a well designed category planning process for the Procurement team to use.


Approach to Creating Category Plans

Customise existing FP Category Planning process to meet the client needs.
Design and run Category Planning workshop to explain process, stakeholder engagement and category plan template.
Confirm categories and category managers to be included in the programme. Set up schedule of 1-1 meeting.
Run 1-1 coaching sessions every two weeks to check progress, provide feedback and offer advice.
Ensure completion of category plans for presentation to the Procurement Leadership Team

Category Planning Process

Module STEP 1 – Review Benefits
1.1 Business Value Delivery
STEP 2 – Engage Business
2.1 Business Engagement
STEP 3 – Prioritise Projects
3.1 Opportunity Analysis
Detailed Activities
1.1 Review the deliverables from previous projects
  • Build in the learnings from previous projects.
  • Plan high level budgets and target setting.
  • Prepare for data gathering and stakeholder engagement.
2.1 Engage with key business stakeholders
  • Review category segmentation & spend profile
  • Analyse supply market
  • Apply strategic analysis tools
  • Summarise findings
  • Identify business units and key stakeholders
  • Plan engagement meetings
  • Hold engagement meetings
  • Update category plan
3.1 Identify and prioritise a pipeline of category projects
  • Draft category planning prioritisation grid
  • Prepare for category planning prioritisation workshop
  • Hold category planning prioritisation workshop
  • Complete and approve category plan
Key Meeting Programme Review Meeting Category managers meet to review programme delivery and capture learnings Business Engagement Meeting Meet with key stakeholders to discuss their goals & priorities for the year ahead Prioritisation Meeting Formal meeting with stakeholders to prioritise and agree pipeline of projects

Tagged by topic: Category Group Planning , Category Management Process

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