Category Management
Category Management - A Shot in the Arm for Procurement
Executive Reports Q3 2011
Author: Jonathan Webb
Our latest Executive report, which you can now access, provides a comprehensive analysis of Strategic Category Management, a topic identified as the number one priority for CPOs in 2011 after cost reduction. PIU members can access the report here.
As the report shows, many organisations find that their rolling out of category management has stalled. However, leaders in this space have prospered and continued to drive forward savings long after implementation. This report outlines some of the approaches and behaviours that distinguish the successful organisations from the rest. The PIU examined this issue by taking a step back and looking at the environmental conditions required for category management.
We divided category management into four elements:
1. Organisational buy-in;
2. Strategic capability;
3. Sources of information;
4. Execution outputs.
The final report includes cross-sector benchmarking, case studies of interesting practice and recommendations for increasing category management's value.
