Category Sourcing Strategy Template

A basic template to capture your category strategy in a succinct and defined way. Includes visual elements to display top areas of spend, global view and external industry drivers.

1. © Ms Category Management All Rights Reserved Category Strategy Name Title Department Category Overview Internal Landscape External Landscape Category Strategy Next Steps

2. Executive Overview Situation Category Overview Including: Spend, Key Stakeholders, Number of suppliers Important Industry Data & Drivers KPI’s (Key Performance Indicators) Complication Risks & Challenges Resolution Strategy Overview Next steps / Support Needed (budget, resources, etc.) Value Created (Savings, cost avoidance, free time or materials, etc.) Category Overview Internal Landscape External Landscape Category Strategy Next Steps

3. Category Overview Category Overview Internal Landscape External Landscape Category Strategy Next Steps Organizational Spend Product(s) Description Sub-categories and Descriptions Overlap with other categories Current Position Analysis Tailored, Generic, Custom, Exclusive Business Requirements or Specifications Budget Timing Issues / Need Detailed Specs.

4. Category Description Visual Elements Current Position Number of Suppliers Tailored Generic Custom Exclusive Number of Customers Cat 1 Cat 3 Cat 2 Use: Sub-Categories, Departments, Regions, etc. Category Overview Internal Landscape External Landscape Category Strategy Next Steps

5. Category Description - (Alternative Template) Category Overview Internal Landscape External Landscape Category Strategy Next Steps

6. Spend Analysis Overview Categories of Spend (What) $XXM – Sub 1 PO Details $XXM – Sub 2 $XXM – Sub 3 Departmental Spend (Where) Global View EU – single category providers (regional) Global Marketing – highly fragmented Supplier Mix (Who) Category overlap Number of suppliers Fragmented / Consolidated Spend Business Drivers (Why) Product Launches Seasonal Trends Product removal PO / Catalog / P-Card (How) Category Overview Internal Landscape External Landscape Category Strategy Next Steps

7. Spend Analysis Visual Elements Category Overview Internal Landscape External Landscape Category Strategy Next Steps

8. Spend Analysis Visual Elements Category Overview Internal Landscape External Landscape Category Strategy Next Steps

9. Spend Analysis Visual Elements Category Overview Internal Landscape External Landscape Category Strategy Next Steps

10. Key Industry Insights Industry Overview Best In-Class Suppliers Trends for sourcing / maturity curve Market Research Findings – Price Drivers, Industry Sourcing Practices, Make Vs. Buy Analysis, Technology and Trends, Global and Regional Outlooks and differences, Growth Drivers and constraints, etc. Key takeaways from: Supplier Perspective Porter’s Five Forces SWOT Kraljic Matrix Category Overview Internal Landscape External Landscape Category Strategy Next Steps

11. Supplier Perspective Account Attractiveness Development Core Nuisance Exploit Value of Business Kraljic Matrix Profit Impact Leverage Strategic Non-critical Bottle Neck Supply / Market Risk OPPORTUNITIES O STRENGTHS S WEAKNESSES W THREATS T Category Overview Internal Landscape External Landscape Category Strategy Next Steps

12. This is a sample text. Insert your desired text here. This is a sample text. Insert your desired text here. Buyer Power This is a sample text. Insert your desired text here. Supplier Power New Entrants Substitution Rivalry/Competition Porter’s Five Forces Category Overview Internal Landscape External Landscape Category Strategy Next Steps

13. Category Strategy Summary of Category, Internal and External Analysis Levers and order of use Strategic Sourcing Gemstone Purchasing Chessboard Prioritization of Opportunities and savings size Roadblocks and solutions Category Overview Internal Landscape External Landscape Category Strategy Next Steps

14. Volume Concentration Best Price Evaluation Global Sourcing Rationalize / standardize specs. Substitute Materials Optimize Life cycle costs Re-engineer Product Product Spec. Improvement Joint Process Improvements Relationship Restructuring Process Relationship Volume Price Globalization Strategic Sourcing Gemstone Sourcing Strategies Specs Re-engineer joint processes Share productivity gains Integrate Logistics Support Supplier Operations Improvement Establish/develop suppliers Employ strategic alliances/partners Examine strategic make vs. buy Develop integrated supply chain Create an Advantage Exploit Buying Power Consolidate number of suppliers Pool volume across units Redistribute volume among suppliers Combine volume from different overlapping categories Compare TCO (total costs) Model “should costs” Re-negotiate pricing Unbundle pricing Develop new suppliers Expand Geographic supply base Profit from global supply / demand imbalances Category Overview Internal Landscape External Landscape Category Strategy Next Steps

15. Prioritizing opportunities Hard Easy High Low Ease of Implementation Savings Opportunity $15M $9M $4M $5M $7M $3M #1 - Quick Wins #2 – High Priority #3 – Medium Priority Category Overview Internal Landscape External Landscape Category Strategy Next Steps

16. Opportunities Insights Savings Category Overview Internal Landscape External Landscape Category Strategy Next Steps

17. Next Steps Timeline Key Milestones Project Management templates/tools Resources needed Financial / Budget FTE Executive support Category Overview Internal Landscape External Landscape Category Strategy Next Steps

18. Mar Apr May Jun Jul Aug Sep Oct Nov Dec Project M&E - Travel Project 1 Project 2 Consolidation Tail Spend PR Agency Project 1 Project 2 Med. Com. Finalize 2019 Project Promo & Print Potential RFP Meeting Review Analysis / Gain Support Decision to RFP Category Overview Internal Landscape External Landscape Category Strategy Next Steps

19. Appendix

20. Voice of the Customer Business Requirements Opportunity Analysis Spend Analysis End-user practices & behavior Communication Plan Spend Segmentation Market Differentiation Analysis Value Analysis Return-on-Investment (ROI) Analysis System integration analysis STP – Situation- Target-Proposal Team Charter Team Formation Brainstorming Breakthrough Thinking Stakeholder Mapping Relationship Mapping Roles and Responsibilities Communication Plan Action Planning Project / Macro Plan Governance Implementation Internal: Business Requirements and Prioritization/ Weighting Business Requirements Complexity Category Spend Profile Map compliance enablers Quick Wins External: Supply Market Analysis Supplier Segmentation Market Positioning Supplier Profiles Supplier Conf./ Forum Request for Information (RFI) Local / Regional / Global Analysis Geographic Relevance Portfolio Price Model Current Position Supplier Perspective Feature-Based Price Purchase Price Cost TCO Price Model Market Differentiation Value & Supply Chain Make versus Buy PEST SWOT Porter’s 5 Forces Channel Mgmt. Pre-sourcing Technology Road Map Options Generation Risk & Vulnerability/ FMEA Analysis RFP Strategy RFx and e-RFx Negotiation Planning Negotiation Approaches Implementation Planning Project Plan Supplier Measurement – Key Performance Indicator (KPI) Review and Management Process Mapping Tendering Approaches Contract / Service Level Agreement Execute sourcing compliance plans Procurement Channel Communication Policy Change Systematic Measurement Supplier Management Supplier Performance Reviews Supplier Improvement Supply Management Inventory Analysis Demand Analysis Risk Analysis, Mitigation and Management Specification Management Continuous Improvement Monitor and increase sourcing compliance

21. Phase 1 Phase 2 Pricing Models Supply Base Performance Mgmt.