Category Archives: Category Management

Case Study: Coca-Cola Bottling Co. Consolidated, Taulia, and Dynamic Discounting

file6941274973247 Coca-Cola Bottling Co. Consolidated (CCBCC) is the largest independent Coca-Cola bottler in the US. It has over 10,000 suppliers, about 25 percent of which are non-PO based. One of the supplier segments that represents a big opportunity within these non-PO invoices is the area of trucking. Historically, many of these small businesses have had to pay receivables factoring firms very high interest rates, and that is money that is taken out of the CCBCC supply chain. The catch is that CCBCC can provide a cost of capital that rivals the factoring firms. CCBCC decided to step in and help with the suppliers’ liquidity problem by giving them the option to take early payments in return for a discount. I interviewed CCBCC's Steve Richards, who gave me an account of the company's experience implementing Taulia.

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How to Manage Complex Categories

- April 7, 2014 6:30 AM | Categories: Best Practice, Category Management, Download, Featured, Procurement

When looking at complex spend categories there are a number of things to take into consideration. First: Don't make assumptions. Second: Gathering requirements from budget holders and users of the goods or services is vital. In this paper, Peter Smith of Spend Matters UK/Europe provides other important practices in executing category management processes.

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Catalog This: How Developing the Right Spend Criteria can Optimize your Catalog Rollout

Here's the scenario: An organization is going through the process of determining how best to improve supplier contract compliance and protect negotiated savings, and it decides that implementing e-catalogs is a key piece of this initiative. While the management of these catalogs and the content contained therein is another issue entirely, the basic premise is to ensure that the usage of these catalogs results in increasing compliance to active contracts and simplifies buying for end users. That being said, the question remains: What is going to be put into these catalogs?

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Is It Time to Finally Blow Up “T&E” Once and For All?

Answer: yes. But there is way more to the story. I don't want to go all Sam Kinison or Lewis Black here, but I’m sick and tired of T&E as the little black sheep in spend management. It’s not just one sheep, it’s a whole flock of them, and they need to be separated, sheared, with what we get woven into something more coherent. Let me explain…

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The Value of Category Management Teams

- February 1, 2014 10:30 AM | Categories: Category Management, Guest Post, Supplier Management

APQC recently conducted a best practices study that examined how high-performing organizations establish and run supplier category management programs. The study revealed that successful organizations align their procurement and overall business strategies by creating cross-functional category management teams. In addition to procurement staff, these teams can include technical experts, quality representatives, and others, depending on the organization’s needs. These teams focus on business priorities and are aided by endorsement from senior leaders.

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Mega Spend Aggregation: 10 Ways to Supersize your Market Basket (Part 1)

- January 20, 2014 10:35 AM | Categories: Category Management, Spend Management

Most procurement organizations complain about diminishing savings on re-sourced categories – and rightly so. But rather than beating the same horse, why not hitch up more than one, and in new ways that you may not have considered? In this PRO piece, we’ll outline five of them, with the first one being "expand the 'lots' in your current market basket."

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The Five-Year View: Cost to Ship with UPS and FedEx has Risen Over 28 Percent

- December 11, 2013 3:13 PM | Categories: Category Management, Guest Post, Logistics

Historically, UPS and FedEx have raised their ground and air shipping rates year over year – and rates for 2014 will be no exception. Despite lower fuel costs and economic conditions that are slightly improving, both carriers have once again raised prices across the board. As in years past, the increases are remarkably similar with UPS and FedEx both announcing a 4.9% price increase for ground shipments. For air shipments, UPS announced a 4.9% increase while FedEx’s rates will rise by 3.9%. Yet, unlike previous years, the carriers have not offset these increases with reductions in fuel costs.

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Healthcare.Gov and FITARA: Connecting the Dots

- November 22, 2013 4:53 PM | Categories: Category Management, Public Sector

As Washington hits the ‘spin cycle’ and everyone from technocrats to mainstream pundits start diagnosing the failures associated with Healthcare.Gov, one thing that should be abundantly clear is this: Everything that Washington does is an IT Program in some way, shape, or form. Or perhaps put more succinctly, everything Washington does relies on an IT program in order to achieve results. If architecting a major public policy program were like designing a car, there are a lot of people in Washington who would like to treat IT like cup holders.

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Top 10 Ways to Radically Expand Category Management Value Creation

- November 20, 2013 2:34 AM | Categories: Best Practice, Category Management, Sourcing

In the never-ending quest to deliver more value, procurement organizations are trying to squeeze more savings and innovation out of spend categories. But, eventually the well starts to run dry, and when that happens, you need to either get more out of that well (fracking for spend savings, perhaps?), dig a deeper well, find another place to dig, or find another way to get the water. My point? To improve category management, you sometimes have to expand it or blow it up completely. Here are some ideas that I’ve seen work elsewhere that can hopefully give you some inspiration and raise your category management game.

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SMART by GEP: Exploring Sourcing and Category Analytics in a Mobile Format

Smarty What's already caught our attention around the mobile components of the platform release is that it’s one of the first tools on the market enabling broader sourcing, category management, and supplier management activities in a mobile-centric environment – rather than treating those working through tablet and smartphone screens (outside of P2P) as second-class citizens.

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Seizing Control of Indirect Spend: Three Categories of Activities

- October 30, 2013 11:00 AM | Categories: Category Management

At a recent ProcureCon indirect conference, I framed the importance of addressing indirect spend based on the challenges that many procurement organizations are having when it comes to the ability to impact direct materials spend outcomes (for more on the direct procurement challenge see Re-inventing 
Direct Procurement. Simply put, since most procurement organizations are failing to influence and manage the intersections of direct procurement with supply chain and the rest of the business, we must take better control of indirect spend.

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Logistics Sourcing: How Can CPOs Size Up Transportation Team Talent

- October 7, 2013 9:08 AM | Categories: Category Management, Learning / Research, Logistics

Sizing up the sophistication of a logistics procurement team is relatively straightforward. There are really four questions in particular to consider that reveal how sophisticated the organization is. Beyond this list, which the Procurian team created to effectively and quickly gauge transportation maturity, I would suggest that it is relatively easy to also apply these strategies to other categories.

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