implementing category management - cips managemen… · sourcing –process, tools & templates...
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© Copyright Future Purchasing, 2011
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Duncan Brock– Future Purchasing
Implementing Category Management
[email protected]: 0118 978 2287m: 07961 125519
© Copyright Future Purchasing, 2011
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Category management is:
A structured process to maximise
value from an organisation’s total
supplier spend
Covering:
Category Sourcing
Supplier Management
Category Planning
What is Category Management?
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Approaches to developing Category Strategies
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Approaches to developing Category Strategies
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Category Management – The Benefits
Third Quartile
ThirdQuartile
SecondQuartile
FourthQuartile
FourthQuartile
SecondQuartile
Firstquartile
Quality of Category Management
Addressable Spend
0 L M H
5% +
3% - 5%
1% - 3%
< 1%
< 25%
25% - 50%
50% - 75%
75% - 100%
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CIPS Category Management Process
Activity
7. Historical Spend Profile
8. Forecast Spend Profile
9. Whole Life Costing
10. Business Requirements
11. Supply Market
Research
12. Supply & Value Chain
Analysis
13. Market Forces Analysis
14. Supplier Profile
15. Supplier Financial
Analysis
16. RFI
17. Non Disclosure
Agreements
18. Portfolio Analysis
19. Supplier Perception
Analysis
20. Options Generation
21. Risk Assessment
Activity
22. Sourcing Strategy
Activity
23. Supplier Selection
Process
24. Statement of
Requirements
25. Contract Terms
26. Service Level
Agreements
27. RFP’s
28. Auctions
29. Proposal Evaluation
30. Negotiation
31. Business Benefit
Measurement
32. Contract Award
33. Supplier Transition
34. Project Review &
Closure
Activity
35. Contract Administration
36. Contract Management
37. Performance Scorecard
STEP 4
ImplementCategory Strategy
STEP 5
Maintain
STEP 1
Initiate/ Prepare
STEP 3
Prepare/Present Category Strategy
STEP 2
Identify & prioritise Opportunities
STEP 6
Improve & Enhance
Activity
28 Supplier Review Meetings
39. Supplier Development
40. Sustainable Procurement
DG2
DG3
Activity
1. Project Charter
2. Stakeholder Engagement
3. Project Governance
4. Project Planning
5. Kick-off Meeting
6. Quick Wins
DG1
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To maximise value from Category Management:
Guiding principle 1 --- Value Creating
Guiding principle 2 --- Facts and Data Driven
Guiding principle 3 --- Consistent Application
Guiding principle 4 --- Flexible Application
Guiding principle 5 --- Cross-Functional Working
Guiding principle 6 --- Easy Access
Guiding principle 7 --- Data Capture
Guiding principle 8 --- Project Management
Guiding principle 9 --- Governance
Guiding principle 10 --- Interactive Environment
Category Management - 10 Guiding Principles
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Enables category management
Accelerates savings
Boosts team performance
Increases rigour
Optimises supplier relationships
Improves project visibility
Powering Excellence in Category Management
What does PROCAT do?
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Sourcing – process, tools &
templates
Supplier management – process,
tools & templates
Built in approval process
Online management of sourcing
and supplier management
activities
Online Community
Powering Excellence in Category Management
What does PROCAT Provide?
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A performance dashboard,
providing up to date
information on all the current
sourcing and supplier
management projects.
1. Homepage
PROCAT: Take a Tour
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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
2. Process Materials
PROCAT: Take a Tour
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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.
3. Decision gate
PROCAT: Take a Tour
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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.
4. Project Overview
PROCAT: Take a Tour
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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.
5. Project summary
PROCAT: Take a Tour
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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.
6. Project discussions
PROCAT: Take a Tour