The aim of the workshop is to support delegates in developing an appropriate category strategy for their category/ies, based upon their category objectives and the complexity of the category and the external supply market.
Introduction
This practical workshop introduces a variety of tools, techniques and methods which can be used to develop a category strategy appropriate for the category. The workshop will adopt an end-to-end approach to category management, addressing both pre-award and post-award opportunities to add value to the procurement of categories.
This course is designed for:
This workshop is designed for category managers or procurement practitioners who need to develop category plans. The programme assumes some awareness of commercial and procurement principles, and will introduce a selection of category management tools.
Course structure
A practical one-day workshop consisting of nine session involving exercises, case studies, presentations and trainer-facilitated discussions. Each of the sessions will be led by an experienced facilitator and will feature the key principles and practical methods which may be used in the procurement process, together with practical case study sessions to maximise the transfer from the workshop to the workplace.
Benefits of attending
Participation will increase capability in developing category plans and allow participants to match the rigour of the plan to the complexity of the category.
As well as this delegates will gain three key benefits from attending:
- More capability in assessing the opportunity in categories and driving out the real business needs through appropriate analysis of demand and stakeholder engagement
- More capability in understanding supply markets and identifying the risks and opportunities present in the supply market
- Less likelihood that the category strategy will be misaligned to the category needs and market risks and opportunity
Key learning outcomes
- Design and develop category strategy at a level of rigour appropriate for the complexity of the category and nature of the category objectives
- Develop a range of practical procurement strategies which may support achieving category objectives
- Demonstrate tools which may help match potential strategies with the specific character and complexity of the category
- Facilitate stakeholders and/or a cross functional team to select the most appropriate strategies based upon a reconciliation of the business need and balance of risk and opportunity in the supply market
- Present the selected strategies in a way that maximises the likelihood of stakeholder acceptance
Course Content
Developing a Category Strategy
- What should be in a category strategy?
- Defining category objectives from spend and opportunity analyses
- Defining risks and opportunities in the market
- What are the options in terms of strategies for demand and supply market management?
- Distinguishing tactical and strategic approaches
- Matrix based approaches to strategising
- Facilitating the team to develop/ refine a range of potential market approaches
- Scaling potential benefits and presenting the strategy to governance groups and other stakeholders
What should be in a category strategy?
- Scope of category management
- Sample category strategy plans
- Which audience are we writing for?
- The category strategy as stakeholder
Defining category objectives from spend and opportunity analyses
- What can we do to change the value derived from any category?
- “Broad brush” options at opportunity analysis
- Category objectives beyond “needs and wants”
Defining risks and opportunities in the market
- How do we understand what is happening in the market?
- Examples of market risk
- Examples of market opportunity
- Understanding the balance of power
- The link between our needs from the category and our market power
Options in terms of strategies for demand and supply market management?
- Changing demand and consumption
- Changing the specification
- Changing the market approach
- Changing the source
- Changing the level of control
- Changing the relationship
- Changing the pricing basis
Distinguishing tactical and strategic approaches
- Examples of tactical initiatives
- Examples of strategic approaches
- The scale and timing of benefit realisation for tactical and strategic initiatives
- Presenting your ideas to the team
- Getting executive support for the plan
- Building a portfolio of initiatives
- Why do so many strategies involve a “go to market” approach?
Matrix based approaches to strategising
- Kraljic’s Portfolio Analysis
- Other matrix based approaches
- Customer Segmentation models
- Reconciling market perspectives
- Why matrix-based approaches help develop repeatable and defensible strategies beyond RFPs
Facilitating the team to develop/refine a range of potential market approaches
- What is our role on the team?
- Model of team facilitation
- Why do stakeholders sometimes say “no”?
- Influencing stakeholders “offline”
- What’s in it for them? Selling the benefits
- Dealing with objections and building consensus
Scaling potential benefits and presenting the strategy to governance groups and other stakeholders
- Don’t be a 10% buyer!
- What factors affect the improvement target?
- Scaling improvement opportunities
- Presenting a range of targets
- Presenting the strategy to governance groups
- Developing three point plans that people can remember
