Are you getting enough value from category management?

According to research, 83% of CPOs believe category managers will need to prioritise fewer, more strategic spend categories in the future.

Category innovation should enable just that. And it should allow you to harness internal and external insights to steal a march on the competition, rather than reacting to market events.

With the emergence of big data and analytics, there’s an unprecedented amount of insight available. That’s why 79% of procurement leaders agree that category management must increasingly focus on innovation.

Driving value

Category innovation will demand a broader skillset in procurement functions. It will mean having the right systems, processes and people to maximise value through:

  • Intelligent automation – to provide on-demand insight that supports forecasting, demand planning, and should-cost modelling
  • Data and analytics – to develop and support strategies, inform decisions, and drive action
  • Predictive artificial intelligence – to monitor market indicators and forecast changes
  • Deep insights – to inform business strategies with supply-market knowledge
  • Driver-based category demand – and costs which link to business activities
  • A disruption-seeking approach – for step-change performance improvement and supplier engagement.

Innovation in action

A telecoms procurement alliance developed an innovative mobile app that sends price and market intelligence to its community, based on data from the users themselves. It also allows affiliates to trade devices within the group – generating internal trades worth more than €10 million, and price improvements of up to 25% in a year.

What's next?

It’s no longer business as usual for procurement. The scale and speed of transformation required to address market disruption is extraordinary.

Success requires a blueprint for turning disruptive events into opportunities to drive competitiveness and growth.

This is what the future demands of procurement. Contact us today to start moving forward.

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