Category Management is a strategic approach which organizes procurement resources to focus on specific areas of spend. The results can be significantly greater than traditional transactional based purchasing methods.
Signing a contract and identifying your suppliers is just the starting point of the procurement process.we need to ensure effective category management throughout the lifecycle of each contract to ensure ongoing delivery of agreed costs and value. The first year of a new contract is especially crucial; If there is no implementation process in place,many ofthe expected gains can be lost.
Common reasons for loss of benefits over contract lifecycle:
- Existing contracts neglected as team members hunt for new contracts
- Lack of in-house expertise for successful Category Management
- Loss of key team members leads to disruption and abandoning delivery milestones
- Fluctuations in market are not caught early
- Bad habits and quick fixes become permanent practices
WHAT WE OFFER
Procurement+ brings you a formalized Category Management service to ensure sustained benefits from initial sourcing through the entire lifespan of the project, including trouble shooting and supply risk mitigation. Our Category Management can be selected as a unique service, or as part of our Managed Procurements Services.