Reinvigorating strategies to increase benefits in consumables categories
Cost reduction and supplier rationalisation benefits delivered by strategic sourcing initiatives are often large and highly visible. Though, without an ongoing category management, it is widely accepted that the headline cost reductions are unlikely to be fully realised over time. However, it can be hard to justify category management resource allocation unless the organisation can see high return on investment (ROI) year on year. This paper classifies different levels of category management in terms of the relative maturity of the procurement processes being employed, and identifies the typical levers that can be deployed to maximise the value to the organisation at each stage.
