One of our most popular research downloads of all time is now a webinar! This is your last chance to register for Tuesday's 10 a.m. CDT presentation, Supercharging Category Management: Pierre Mitchell Comments Live on Recent E-Book. This brief 30-minute webinar will feature Pierre, who will walk you through what he considers the main takeaway of the e-book while also fielding questions from you, the audience. The category management revolution is happening, people! Get on board!
Category Archives: Category Management
We are always filling the Spend Matters research hopper with the latest free content from our analysts. When topic, content and the planets align to create a perfect storm of relevant, worthwhile reading, we get something akin to Supercharging Category Management: Free Yourself from Siloed Sourcing to Unlock Breakthrough Value. This free e-book from Pierre Mitchell, chief research officer at Spend Matters, is proving to be one of our most successful offerings of all time. See for yourself just why and get your own copy today!
Procurement organizations often put inordinate amounts of time into defining and implementing strategic sourcing and category management processes that typically work well for indirect materials, services (even complex services) and some finished parts/products/SKUs on the direct side. But for a range of raw, base or semi-finished commodities and materials, strategic sourcing – as we think about it today – simply doesn’t work as well as it could. Based on case study data, this Spend Matters Plus post provides a refreshed approach to both commodity and direct materials sourcing and supplier management beyond simply wrapping a process around haggling with producers/manufacturers, distributors and/or hedging prices and demand.
For those who are not deep into procurement, strategic sourcing sounds like little more than mumbo jumbo, or as my colleague Pierre Mitchell says in a recent analysis, “the n-step sourcing process can be unintelligible to a stakeholder.” And quite often, that’s in the best of cases – it gets worse. In certain cases, procurement can sound adversarial in relation to the business. Read more in new Spend Matters e-book, Supercharging Category Management: Free Yourself from Siloed Sourcing to Unlock Breakthrough Value.
Category management has had a good run – a good, long run. But you can’t save your way to zero, and supply markets don’t fall neatly into nice hierarchical spend taxonomies. So procurement organizations are looking for new ways to engage stakeholders and suppliers alike outside of the “sourcing box.” Category management 1.0 isn’t going to cut it anymore. But, what’s next? What does category management 2.0 look like? Is there an example?
Strategic sourcing is integral to savings, and proactive procurement organizations out there are defining and managing spend categories in an effort to contribute to the bottom line. Pierre Mitchell, chief research officer at Spend Matters, recently teamed up with BravoSolution for the FREE e-book, Supercharging Category Management: Free Yourself from Siloed Sourcing to Unlock Breakthrough Value. Get your copy today!
Roughly a decade ago, a handful of technology vendors did a great disservice to the vocabulary of procurement by offering targeted extensions to early sourcing suites that enabled a view of category/commodity activity that extended beyond one-off sourcing events and labeling these modules and capabilities as “category management.” Pierre Mitchell, Spend Matters Chief Research Officer, sets out to correct this wrong in the new e-book Supercharging Category Management: Free Yourself from Siloed Sourcing to Unlock Breakthrough Value.
This is more than just our standard research paper. We teamed up with BravoSolution to produce an entire e-book filled with secrets that will help you unlock any and all potential value through category management. Spend Matters Chief Research Officer Pierre Mitchell's Supercharging Category Management: Free Yourself from Siloed Sourcing to Unlock Breakthrough Value is now available for FREE download!
An excerpt: "In a world where procurement organizations are continuously tasked to do more with less, we'll take you way beyond the 2x2 matrix and to a place where cross-functional, multidimensional category management goes way beyond cost savings. And we'll tell you how technology fits every step of the way, with case studies and real-life examples. It's time to supercharge your category management."
Get your copy today!
Forget Category Management, Start with Customer Management and Context Management: Part 2 – The Solution
In Part 1 of this 2-part series (published over on our Chief Procurement Officer website), we talked about the importance of not just having strong category management capabilities but also customer management and context management. In this second part of the series, we’ll discuss how to implement it in terms of organizational structure, roles and technology implications. Demand management is a combination of what customers want to consume and why they want to consume it (i.e., what are their goals and objectives). This Spend Matters Plus article offers advice for procurement practitioners on how to organize a customer management initiative and how to engage with your customers.
What will the future of category management look like? Accenture has a strong opinion on the topic, and shares it in its recently published brief, “Procurement’s Next Frontier – The Future Will Give Rise to an Organization of One,” when introducing the concept of the “virtual category room.”
The notion of extending category management into a digital age is a complex one, especially considering many organizations are still barely crawling in building out category management teams outside of only a few top areas of spend. Yet the technology to support a new type of category management thinking and capability is not that far away. In fact, much of it is already here – it just needs piecing together.
I'm not sure exactly when, but around a few years ago, terminology began to appear in the procurement technology provider community that labeled transactional purchase-to-pay (P2P) processes as “downstream” – meaning post-contract processes – and strategic sourcing processes as “upstream.” It has become a convenient shorthand naming convention – and also seemingly harmless. But, recently, I saw a provider trying to create some thought leadership about upstream value creation and downstream value capture and decided it was time to say something. Or a few things…
If you’re sourcing commodities this year, then don’t go any further before reading our 3 Best Practices for Buying Commodities in 2015. Jason Busch, founder and managing director, Spend Matters, and Lisa Reisman, CEO, Azul Partners, and executive editor, MetalMiner™, teamed up for this must-have FREE PDF for purchasing professionals everywhere. With it, you will: Learn why sourcing on the spot market is inherently speculative and therefore risky; know why using indexes is just plain bad strategy; and wring every possible bit of value from your direct material commodity spend. So stop speculating and learn concrete, tangible practices that will yield strong ROI, in addition to the most favorable outcome possible. Get your copy today!