Are you Using Category Profiling?

The Category Profiling planning process is used to develop category plans that are aligned to Customers business objectives with a strategic approach to maximise value, reduce risk and effectively manage the supply of goods and/or services.

the category that you choose to profile will depend on the organisation that you work for. In this instance, we have chosen paper. If your company isn’t heavily reliant on paper your category profile might be at a higher level before your break down your category tree. If your company is a publishing house that relies on printed print and accounts for a significant chunk of your third party expenditure, a paper increase in the cost of paper consumables within the supply chain will have a bigger effect and warrant the category profile being done at paper level.


Category  / Sub-Category
Parent Category (if appropriate)
 

 

Summarise category dependencies (upon and to):

 

Summarise key specification issues

 

Key Stakeholders Expenditure PA (£) Supplier(s) Contract Term
Summarise any specific influences on customer(s) demand / demand dependencies:

 

Summarise key supplier differences / capability / basis of selection / price performance & drivers / contractual constraints:

 

Summarise comments / recommended action:

 

List Dependences within the supply chain

 

Action: Request for a spend report from financed to analyse spend in the last 4 years

 

  1. Describe the category
  2. Scope
  3. Commodities falling within the category
  4. Explain how this work is aligned to business objectives and the procurement strategy
  5. What is the current supply and demand
  6. How many suppliers do you have/ or available
  7. Is the contract compliant?
  8. Communicate intention for sourcing strategy
  9. Draw up category plan and allow for inbuilt reviews
  10. Keep informed of category changes, new opportunities, challenges, risk and supply chain changes
  11. Profile the risk
  12. Review opportunities in the market
  13. Understand impact on the customer/organisation
  14. Determine short, medium and long-term objectives

 

Action: Desktop Market Research for Category Profiling 

 

Opportunity for Negotiation?

Category /
Sub-Category
Value of

Spend PA

(£)

Price and Source Flexibility

 

Past Effort and Expertise

 

Savings
(%)
 
Potential Savings PA
(£)
 
Stakeholders / Departments

 

 

 

Prioritisation

Business Impact Ease of Implementation Priority
  Internal Complexity External Market  
    H= High

M= Med

L= Low

H= High

M= Med

L= Low

      H= High

M= Med

L= Low

H= High

M= Med

L= Low

H= High

M= Med

L= Low

H = High

M = Med

L = Low