Supply chains use category management to segment spending on goods and services and find opportunities to streamline or consolidate purchasing. And category management plans help procurement teams allocate resources, align category work with corporate strategy, understand risks attached to each category, benchmark, refine prices based on market data, create category-specific action plans, and unearth opportunities and successful approaches. So it’s vitally important to have an efficient and effective process for category management plan-generation.
From APQC’s Sourcing and Procurement Blueprint for Success, this article details the importance of documenting, reviewing, and distributing category management plans. These findings are supported by APQC’s Open Standards Benchmarking results and real-world examples from top performers.