Category Management Coalition for Government Procurement April 10, 2014
Category Management Definition of Category Five Responsibilities of Category Management Management Optimize Develops and executes the Contract - Identifying vehicles strategy for product or Vehicles & - Understanding market drivers - Community of practice service categories as Manage - CM training Landscape business units and optimizes spend under management in conjunction with industry, Manage Data Grow / Share while exceeding customer Collection and Expertise Analysis expectations. - TCO CATEGORY - Prices Paid MANAGEMENT - Custom Reports With the goal of: Minimizing redundancies in purchasing while reducing Maximize Leverage Customer Supplier total cost of ownership to the Relationships Relationships Government and taxpayers. - Demand Mgmt - Tiers of service - Share industry best practices - Strategic partnerships - Sourcing strategies - Targeted solutions 2
Purchasing Landscape for Government Currently the purchasing landscape is ad hoc. Many agencies make independent purchases that frequently lack strategy or coordination. The landscape is characterized by costly redundancies in vehicles, buys, and efforts. Current State of Purchasing: Future State of Purchasing: • Lack of coordination across agencies • Synchronized procurement across government • Duplicated efforts • Industry involvement in developing best category • Many agencies, many different strategies with strategies limited ability to leverage buying power as single • Core competencies leveraged to match customer needs enterprise • One common management framework All Goods Category Optimize & Contract Implementation of Management Develop Services Vehicles & Category Management & Expertise Manage CAP Landscape Manage Data Leverage Collection & Supplier Analysis Maximize Relationships Customer Relationships 3
Category Management Definition of Category Five Responsibilities of Category Management Management Optimize Develops and executes the Contract - Identifying vehicles strategy for product or Vehicles & - Understanding market drivers - Community of practice service categories as Manage - CM training Landscape business units and optimizes spend under management in conjunction with industry, Manage Data Grow / Share while exceeding customer Collection and Expertise Analysis expectations. - TCO CATEGORY - Prices Paid MANAGEMENT - Custom Reports With the goal of: Minimizing redundancies in purchasing while reducing Maximize Leverage Customer Supplier total cost of ownership to the Relationships Relationships Government and taxpayers. - Demand Mgmt - Tiers of service - Share industry best practices - Strategic partnerships - Sourcing strategies - Targeted solutions 4
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Category Hallway Concept 6
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