Elements and Performance Criteria
- Plan for category management
- Identify and assess organisational structures and business requirements from corporate planning documents in the context of suitability to adopt category management approaches for procurement and contract management.
- Develop and use effective communication strategies to engage with internal stakeholders, external and market stakeholders about category management approaches, product/services to be category managed, market and supply chain conditions.
- Develop a category management plan based on category management principles for each category to be managed that includes outcome based, transparent and manageable performance metrics for category managed items and services.
- Obtain senior management approval for the category management plan.
- Develop outcome based processes and guidelines to support category management.
- Identify staff skills and training and development opportunities related to category management and incorporate these into professional development plans.
- Identify and interrogate organisational Enterprise Resource Planning (ERP) and document management systems in order to gather and analyse data pertaining to the level of spend on various procurement types.
- Define categories
- Identify and analyse current procurement options adopted by the organisation and other procurement options that are available in the marketplace.
- Identify market, procurement and contract management trends, opportunities and risks relevant to categories.
- Identify and engage relevant internal stakeholders to assist in defining categories.
- Define procurement categories using a recognised basis.
- Identify and implement appropriate systems to support category and contract managers.
- Implement category management
- Develop market strategies for categories and act on them as appropriate to the organisation.
- Implement the category management plan.
- Implement strategies to manage and maintain productive relationships with identified suppliers.
- Resolve operational issues raised by contract users and suppliers.
- Capture and analyse data from a range of sources about the category performance against the performance metrics on a regular basis and report category performance to appropriate corporate systems.
- Regularly review buying organisation, industry and market category positions to identify trends, opportunities and risks and adjust direction as indicated by the results of the review.
- Review category management
- Review and monitor performance metrics on a regular basis to ensure efficiency and effectiveness is achieved and maintained in category management processes.
- Consult appropriately with stakeholders, provide performance feedback and recommend corrective or improvement actions as necessary.
- Monitor buying organisation, industry and market performance and ensure organisational strategies are modified where appropriate.
- Monitor staff skills and provide appropriate skilling upgrades.