Proactive and Strategic Phase (First 12 Months)
- Conducted detailed spend analysis, e.g. refresh mobile device inventory data, map network usage.
- Benchmarked current requirements.
- Aligned Source-to-Pay process.
- Developed category plan and conducted three waves of strategic sourcing plus supplier development for top suppliers.
- Developed usage policy to control costs and manage risks.
Category Management Phase (12+ Months)
- Developed expertise by conducting market research, supplier analysis, and operation support.
- Assumed responsibility for supplier management and implemented best-practices processes.
- Established dynamic demand management.
- Participated actively in major CAPEX decisions.
Results – 5 Years of Category Management
- Category spend was reduced by 75%.
- Active management and supplier development led to cost savings in mature subcategories and allowed for redeployment of capital to growing areas such as network security.
- Increased receptivity and adoption of efficient technological advances.
- Procurement team took on supplier management role, conducted QBR, reviewed and approved invoices and planned annual budget for the category.
Featured Photo by Robert Eklund on Unsplash