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Category Management - CIPS

Category Management - CIPS

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moqmer
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824 views16 pages

Category Management - CIPS

Category Management - CIPS

Uploaded by

moqmer
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Implementing Category Management

Duncan Brock Future Purchasing


[email protected] t: 0118 978 2287 m: 07961 125519
Page 1

Copyright Future Purchasing, 2011

Category Management

Category management is:

A structured process to maximise


value from an organisations total supplier spend Covering:

Category Planning Subcategory Sourcing and Supplier Management.

Copyright Future Purchasing, 2011


Page 2

Approaches to developing Category Strategies

Copyright Future Purchasing, 2011


Page 3

Approaches to developing Category Strategies

Copyright Future Purchasing, 2011


Page 4

CIPS Category Management Process

STEP 1
Initiate/ Prepare

STEP 2
Identify & prioritise Opportunities

STEP 3
Prepare/Present Category Strategy

STEP 4
Implement Category Strategy

STEP 5
Maintain

STEP 6
Improve & Enhance

Activity
1. Project Charter

Activity
7. Historical Spend Profile

Activity
22. Sourcing Strategy

Activity
23. Supplier Selection Process

Activity
35. Contract Administration 36. Contract Management 37. Performance Scorecard

Activity
28 Supplier Review Meetings 39. Supplier Development 40. Sustainable Procurement

2. Stakeholder Engagement 8. Forecast Spend Profile 3. Project Governance 4. Kick-off Meeting 5. Quick Wins 9. Whole Life Costing 10. Business Requirements 11. Supply Market Research 12. Supply & Value Chain Analysis 13. Market Forces Analysis

24. Statement of Requirements

DG2

25. Contract Terms 26. Service Level Agreements 27. RFPs 28. Auctions 29. Proposal Evaluation 30. Negotiation 31. Business Benefit Measurement

DG1

14. Supplier Profile 15. Supplier Financial Analysis 16. RFI 17. Non Disclosure Agreements 18. Portfolio Analysis 19. Supplier Perception Analysis 20. Options Generation

32. Contract Award


33. Supplier Transition 34. Project Review & Closure

21. Risk Assessment

DG3

Copyright Future Purchasing, 2011


Page 5

Category Management - 10 Guiding Principles

To maximise value from Category Management:


Guiding principle 1 --Guiding principle 2 --Guiding principle 3 --Guiding principle 4 --Guiding principle 5 --Guiding principle 6 --Guiding principle 7 --Guiding principle 8 --Guiding principle 9 --Guiding principle 10 -- Copyright Future Purchasing, 2011
Page 6

Value Creating Facts and Data Driven Consistent Application Flexible Application Cross-Functional Working Easy Access Data Capture Project Management Governance Interactive Environment

Overcoming resistance
Barriers
1

Examples
I can source better than you I cant see any benefits

Best in Class Approach


Clear governance models Compelling strategies everyone wins Flexible application of processes Lead by example Recruit experts Compelling business case for change Recruit sponsors for areas of spend Objectives alignment Roll-out and sell benefits of the process used Education and coaching

Local vs global

Not enough time

I cant wait for a long process I need it now Operational issues You dont understand Im in control, I dont need your help I report locally not globally This is not in my objectives for the year Category management is just about good enquiries I use my own 5 step process

Out of bounds

Authority to act

Alternative approaches
Copyright Future Purchasing, 2011

Powering Excellence in Category Management

What does PROCAT do?


Enables category management Accelerates savings Boosts team performance Increases rigour Optimises supplier relationships Improves project visibility

Copyright Future Purchasing, 2011


Page 8

Powering Excellence in Category Management

What does PROCAT Provide? Sourcing process, tools &


templates Supplier management process, tools & templates Built in approval process Online management of sourcing and supplier management activities Online Community

Copyright Future Purchasing, 2011


Page 9

PROCAT e-enabled Category Management solution

Step

Step

Improve & Enhance

Initiate / Prepare

Step

DG1

: Step

Maintain

Identify & Prioritise Opportunities


DG3

Step

Implement Category Strategy

:
DG2

Step

Prepare/Present Category Strategy

Copyright Future Purchasing, 2011


Page 10

PROCAT: Take a Tour

1. Homepage A performance dashboard,


providing up to date information on all the current sourcing and supplier management projects.

Copyright Future Purchasing, 2011


Page 11

Take a Tour

2. Process Materials A comprehensive set of guides


providing a full explanation of how to use the tools and templates. All the templates can be downloaded and used in a live environment

Copyright Future Purchasing, 2011


Page 12

PROCAT: Take a Tour

3. Decision gate The formal means of progress


checking and approval for each project. Guidance and templates are provided to help both the project team and the people who are approving the project.

Copyright Future Purchasing, 2011


Page 13

PROCAT: Take a Tour

4. Project Overview An up to date overview of all


the live category management projects that the user is working on. A number of projects can be linked together in a programme to provide additional management reporting of progress and KPIs.

Copyright Future Purchasing, 2011


Page 14

PROCAT: Take a Tour

4. Project summary A live dashboard is provided for


each project showing the progress made against each step of the category management process, and highlighting important project information.

Copyright Future Purchasing, 2011


Page 15

PROCAT: Take a Tour

5. Project discussions PROCAT provides discussion


forums for each project, and also for the wider community that are using PROCAT. Email alerts prompt the users that updates have been made to their project discussions.

Copyright Future Purchasing, 2011


Page 16

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