CIPS principles of category management
PROCUREMENT STRATEGY
“ Many of the tools are the same that category managers have been using for years ”
ETOSHA THURMAN CHIEF MARKETING & SOLUTIONS OFFICER , INTELLIGENT SPEND & BUSINESS NETWORK , SAP
CIPS principles of category management
Categorisation : classifying organisational requirements and segmenting into categories creates expertise , and market knowledge to deliver innovation Aggregation : collating the total business requirements can achieve a reduction in purchase prices and overall costs by increasing volumes and reducing the number of transactions and agreements Standardisation : setting a standard set of policies and procedures for individual users and cross-functional teams for consistency and tracking benefits Relationship management : enabling a clear and consistent exchange of knowledge and information with suppliers and key stakeholders to build relationships and add value Outsourcing : identifying opportunities to utilise expertise from third parties , who have the skills or expertise to add value which enables staff to focus on other core activities .
“ A big area for improvement is getting business stakeholders involved and understanding their roles in the category management process ,” says Thurman .
She adds : “ When stakeholders work collaboratively with category managers the process can be steered toward achieving specific business goals , such as ESG targets or efficiency objectives , rather than simply procuring a product or service at the lowest price .”
And what of technology ? Can AI be used to improve performance ? Thurman feels AI has the potential to improve performance in many significant ways .