6. www.ip-sm.com
Change is not about adopting tools…
…it’s about transforming capabilities
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
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7. www.ip-sm.com
Do we really do “Category Management”?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
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8. www.ip-sm.com
Let’s remind ourselves what “Category Management” is
“Category Management is a strategic
approach which organises procurement
resources to focus on specific areas of
spends. This enables category managers to
focus their time and conduct in depth
market analysis to fully leverage their
procurement decisions on behalf of the
whole organisation”
• Category strategy is a systematic
approach to guarantee initial significant
improvements and a long term
sustainable guideline on how to create
value within the category
• A category strategy should include a
holistic cross-functional analysis on how
a category can increase value and
reduce waste.
• A successful category strategy should be
aligned to the company's priorities
CIPS McKinsey
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9. www.ip-sm.com
What should we be thinking about?
Establish –Spend Analysis, Requirements, Suppliers, Market
Evolve – Strategy, Ideas, Options, Innovation, Risks
Elect – Decide on chosen Initiatives
Execute – Negotiate, Contract, Implement, get Results
Review – Manage KPIs, SRM, Risk Management, Initiatives
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
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10. www.ip-sm.com
Why does Category Management matter?
10
100%
Idea/
Concept
20%
80%
40%
0%
60%
Cost impact
Function
definition
Specification
defintion
Supplier pre-
selection
Sourcing? Contract &
Ordering
Cost Reduction Opportunities
Here you win!
Here you try not to
lose!
11. www.ip-sm.com
Have we developed our team’s capability?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
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t/Digitisation
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12. www.ip-sm.com
What should we be thinking about?
Organisation – Are there clear roles and responsibilities?
Skills Gap Analysis – Strengths and areas for improvement?
Procurement Knowledge – Do the team have the hard skills?
Wider Skills – Do we have the soft skills? Communication, Influencing,
Negotiation?
Support & Mentoring – How are we supporting our team?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
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13. www.ip-sm.com
• How will you
prepare your
team for the
future?
• What is the
current skill
level of your
team?
Building capability relies on assessment and development
Assessment
Development
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14. www.ip-sm.com
Have we really thought about our Suppliers?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
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15. www.ip-sm.com
What should we be thinking about?
Supplier Categorisation – Which suppliers are critical?
Approach – What systems/process do we use?
Communication – What methods, timing and technology?
Performance Management – Is robust and effective?
Innovation – Are we working with suppliers to improve our business?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
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16. www.ip-sm.com
Have we assessed and managed our risks?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
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17. www.ip-sm.com
What should we be thinking about?
Risk Assessment – Do we understand our risks?
How do they map to our categories?
Risk Process – How do we manage risks?
Risk Ownership – Do we have clear risk owners?
Risk Mitigation – How are we actively mitigating risks?
Continuous Improvement – Can we demonstrate good outcomes?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
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18. www.ip-sm.com
Do we really manage our Contracts?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
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19. www.ip-sm.com
What should we be thinking about?
Contract review – What contract do we have?
Contract Storage – How do we manage contracts?
Key commercial terms – Do we understand them?
Review & Renewal – Do we have a structured approach?
Best Practice contracting – Are we building in data protection, innovation, risk?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
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20. www.ip-sm.com
…and after all this; how could digitisation help us?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcureme
nt/Digitisatio
n
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21. www.ip-sm.com
What should we be thinking about?
Source to Contract
Knowledge Management e.g. Commodities
Supplier Relationship Management
Contract Management
Procure to Pay (P2P))
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement
/Digitisation
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22. www.ip-sm.com
Getting things done is a challenge
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
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23. www.ip-sm.com
With support you can transform successfully…
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
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