category management

A Focus on the Category Management Plan

Image of Category Management

SIG University Certified Sourcing Professional (CSP) program graduate Devendra Pathak shares how the focus on Category Management can help your organization grow with his very own with a step by step model.


Category management is one of the areas in which I should focus on my organization. 

After the category management session, I understood the importance of category management. A category plan has two main aspects, category analysis, and category planning. However, before starting to work on any category plan, I would like to understand the category maturity. It will give me a real picture of the category and areas where we should be more focused. Once I study the category maturity in terms of spending and contracts, I will then work on the category plan.

Category analysis where I will study the following,

  • Global industry trends,
  • Spend analysis
  • Demand & supply dynamics
  • Porter’s five forces

Global Industry Trend- This is all about the latest trend in the category across all regions. What is the new commodity which has the highest demand globally and where we have less demand due to technological change or updates?

Spend Analysis- I can say that spend analysis is the heart of category management. It has a major role in developing a sourcing strategy. I will analyze category spending to understand the top 10 sub-categories then the top 10 suppliers and top 10 commodities where we have the highest spending in the category.

Devendra Pathak, Senior Procurement Analyst, CDK Global LLC

Utilizing Team Engagement in Procurement

Image of Team Engagement

SIG University Certified Sourcing Professional (CSP) program graduate Shawnie Albritton shares how category management can help with cross-team engagement and its usefulness in procurement.

Shawnie Albritton, Sr. Procurement Operations Analyst, Raymond James

Top 10 SIG Speaks Blogs of 2021

2021 blogs

To wrap up 2021, we highlight the top 10 SIG Speaks blogs of the year. From sustainable sourcing to McDonald's happy meals, this year we have brought a range of content to fuel your procurement toolkit for the future of the industry!


Women's History Month Spotlight

SIG celebrates diversity and inclusion by highlighting the professional contributions of SIG members for Women's History Month. Here is a round-up of our favorite women authors over the last year to feature!

Lovin’ It: How McDonald’s Happy Meals Saved the SIG Summit

SIG CEO & President Dawn Tiura tells the story of how McDonald’s happy meals turned frowns upside down and saved the SIG Summit.

Sustainable Sourcing 101

This guide provides a basic overview on sustainable sourcing, including links to resources.

New Priorities for Procurement Leaders

CEO of Scanmarket, Betina Nygaard, discusses the new priorities that procurement leaders must adapt to in the post-pandemic workforce.

The Future of Procurement and the Shifting Supply Chains

As we reflect on 2020, the future has to be about possibilities to reshape our supply chains, with lessons from the past unifying ideas to accelerate the recovery and reset needed – for defining the future of work, a thriving planet and equality for all. 

Desmond Williams, Digital Marketing Manager

Making Supplier Relationship Management Work

supplier management

SIG University Certified Supplier Management Professional (CSMP) program graduate Indre Ciuberke breaks down the importance of the Supplier Relationship Management (SRM) Framework and the four quadrants of SRM communication that adjust the ways of working with suppliers. 


When you think about the Supplier Relationship Management (SRM) Framework, it’s not just walking and talking with your Organization partners and having a relationship with them. From my perspective, SRM is based on relationships, however, stressing the communication and information sharing process in the particular relationship. Usually, SRM has corporate attributes such as ensuring the governance, agenda tracking and managing risks associated with the services or products that the supplier provides to the organization.

Every team is focused on bringing value to the organization. SRM can contribute to this is to push the streamlined service delivery by becoming a core internal team in the organization's structure for outsourced service management.

Supplier Relationship Management Team Framework

Supplier Relationship Management Team Framework

I have tried to describe the basic SRM as an internal core team framework in the picture above. The idea is based on communication and information flows:  

Indre Ciuberke, Procurement Manager, Moody’s

Procurement KPIs: The Keys that Unlock the Value of Spend and Supply Management - Part 3

Procurement KPIs and Spend Management

In part one and part two of this KPI series, we highlighted some of the foundational measurements for procurement pros and the problems of traditional procurement key performance indicators in terms of how they can be incomplete, misleading and even damaging to a value chain transformation.

So how do you get from tactical procurement metrics to more powerful spend/supply measures that help build new capabilities and favorably impact critical business outcomes?

We have mentioned some of the more expansive sets of metrics that organizations use to measure several areas:

●      Spend/cost management and savings

●      Supplier/supply performance

●      S2P process metrics for process performance

●      Underlying capabilities in talent management, digital, etc.

●      Stakeholder-specific metrics related to the above

In this third installment, we’ll dive a little deeper into some example metrics, but the first order of business is to provide a framework giving the backdrop on the KPIs and use it to hone in on metric types before listing individual KPIs.

Pierre Mitchell, Chief Research Officer, Spend Matters

Does Your Business Need to Understand Category Management Principles?

Category management tips

SIG University Certified Sourcing Professional (CSP) program graduate Diana Redwine shares her thoughts on the best way to get business stakeholders engaged.


Ugh, here comes procurement, getting in our way again!

In the Tech world, the role of procurement changes with the transition from start-up to a public company. That transition is full of bumps if not addressed with a support mindset.

Somewhere in the timeframe from growth to a public company, experienced procurement talent is engaged to help move spend activities from tactical to strategic. The notion of this is much more grand and idealistic than the reality.

The Idea

Traditionally, handling contracts, licenses, order forms, etc., have been managed by the person with the need, not necessarily by someone with expertise in contract development and negotiation. With procurement added to their toolkit, the business stakeholders might say, “gosh, it would be nice to hand this off to someone else” or “how do I know this is the best price/terms?”

More likely, they have been advised that a new policy is being implemented that requires procurement involvement. However, in my experience, many stakeholders view procurement as an impediment to progress and do not willingly hand off their contract needs. Hence the need to truly consider this question of just what the stakeholders REALLY need to know about category management.

Diana Redwine, Senior Procurement Manager, Smartsheet Inc.

Trending in the SIG Resource Center – February 2021

In early December 2020, Google published its trends for 2020, listing the top searched terms, people, news stories and more. It is no great surprise that "Coronavirus" was the top searched term and news story. Nor that Tom Hanks, Kobe Bryant or Kamala Harris were high on the list. What I found remarkable is that these trends were not reflected in the top searched terms for SIG's website in 2020. In fact, it was business as usual on our website. Sure "COVID" and "resiliency" and "remote work policies" made the list. Website traffic and searches increased in volume, but our visitors were searching for the same topics and downloading some of our best case studies for help.

Here's just a short snapshot of some of the trending searches in 2020:

Category Management

Most sourcing professionals know what category management is and a critical mass of our members practice category management at varying levels of maturity. This SIG blog summarizes our resources in one location and is one of our most visited pages. Members frequently download our Template for Building a Business Case for Category Management.

Mary Zampino, Vice President – Content, Research & Analytics

Top 10 SIG Speaks Blogs of 2020

To wrap up 2020, we highlight the top 10 blogs of the year.

To wrap up 2020, we highlight the top 10  SIG Speaks blogs of the year. From sustainable sourcing to mastering the art of negotiation, this year has been filled with thought leadership to help weather the COVID-19 pandemic.


The Guide to Understanding Category Management

By drilling down on spend categories, procurement can become established as a trusted advisor to the business. Check out our guide for a category management template to build your business case.

20 Questions About Life Post-COVID-19

SIG CEO & President Dawn Tiura discusses the future that lies ahead post-COVID-19.

Sustainable Sourcing 101

This guide provides a basic overview on sustainable sourcing, including links to resources.

7 Sourcing Business Models to Improve Sourcing Effectiveness

This article outlines seven sourcing business models that organizations should consider to improve their sourcing effectiveness and get the best results from supplier relationships.

Measurable Success: 7 New KPIs to Optimize Your Procurement Pipeline

This article outlines seven sourcing business models that organizations should consider to improve their sourcing effectiveness and get the best results from supplier relationships.

Desmond Williams, Digital Marketing Coordinator

Benefits of a Strategic RFx Process

RFx is a term used to describe multiple types of requests.

SIG University Certified Sourcing Professional (CSP) program graduate Karina Swanson discusses the RFx process and how it allows you to analyze real-time market dynamics to ensure you are receiving the right service or product.


There are several reasons you may be considering  an RFx strategy as the correct process to pilot for your business. If so, I highly recommend taking a closer look at your portfolio and ask yourself these questions:

-        Have you seen a pricing change in the last 12 months?

-        Do you have a diverse number of suppliers?

-        Do you see small gaps in pricing from dual or multi-sourced products or services?

-        Is your portfolio consolidated?

-        Have you eliminated all risk factors from your portfolio?

If you answered “no” to any of those questions, then launching an RFx will bring value to your business.

Defining RFx

RFx is a term used to describe multiple types of requests. Choosing the right requests for your business is dependent on your end goal. Start by having discussions with your team and stakeholders to identify what you aim to accomplish.

If you are looking for a general understanding of services or products, you can launch a Request for Information (RFI).  Most people use this as the first step in their RFx strategy to evaluate their suppliers’ capabilities. An RFI is a useful tool to involve new suppliers on a new project, assess the market for better suppliers, create a short list of suppliers for your portfolio or the next phase of your strategy.

Karina Swanson, Sourcing Manager, Sherwin-Williams Corporation

SIG Speaks to Rajeev Karmacharya

Procurement professionals had previously learned to work with suppliers and business partners who are not necessarily in our office buildings- remote work has not been as much of a major shift in terms of how we engage.

 

Rajeev Karmacharya is Head of the Strategic Sourcing and Category Management group at Fannie Mae. Rajeev leads a team of category management, sourcing/contracting and supplier operations professionals managing $4.5+ billion in external spend. He is a member of the SIG Advisory Board and was a featured presenter at SIG’s virtual SIGnature Event that took place in September 2020. Virtual SIGnature Events are free to all qualified buy-side practitioners and sell-side members.


What role does procurement play when it comes to transitioning employees to a work-from-home environment?

I would argue that procurement is a key enabler for several reasons. Many of us have been working from home now for several months. If you think about what was needed for a seamless transition to a work-from-home model, technology and digitization come to mind. Procurement has had a role to play in the acquisition of these technologies and ensuring there are appropriate controls and SLA’s to mitigate any potential performance issues.

Procurement has been an early adopter in implementing solutions such as digital signature, which has seen broader adoption across the enterprise in a work-from-home environment. Specific to the procurement function, approval workflows built into our source-to-pay solutions have enabled our business stakeholders to review and provide necessary approvals electronically.

On a more tactical level, our procurement team worked to ensure that office supplies and peripherals needed to work from home effectively could be ordered online via our procurement portal to be shipped directly to our employees’ homes. Our Category Managers negotiated deals with technology and office furniture suppliers so employees could take advantage of our volume leverage.

 

Rajeev Karmacharya, Head of the Strategic Sourcing & Category Management, Fannie Mae.

Pages