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Important Things that People Should Take Note About Category Management
When it comes to category management, it is a type of method that is being used in terms of the procurement which pairs up different kinds of items that have the same specifications or are being delivered or taken from the same supply when ordered in the market. Innovation, cost reduction and service improvement are some of the important objectives that are being managed when it comes to the categories that are created when using the category management approach. So here are the tips that are included in the top ten list for the category management programme that is surely going to kickstart the company.
The first thing to do is to ensure of getting a mandate from senior management. There are lots of organizations these days that have their own approaches and methods when it comes to category management and this will highly be likely different when it comes to the approaches that these companies make. There are lots of organizational barriers that hinder the initiation of category management all the time, which also means that most organizations that are going to do this approach must have the permission of their senior management which is a must since there will be a lot of changes that are happening when this approach is utilized. Number two is the creation of a scope that can be of great help to the organization. Getting a clear picture of the situation is one of the starting points that category management does when it comes to an organization and this clear picture usually starts with the present expenses that the organization has.
Allocation is always an important factor when it comes to the expenditures of the organization and helping them to decide these things is by way of developing a spend cube which can help them categorize things easier so that they can prioritize what to put into the program first.
It is very important for an organization to know that they should never copy or reproduce the contracts that they have done or have at their disposal during the past. There are lots of organizations today that are looking into the combination of different kinds of categories that belong in the primary category of their program which can become sub-categories because it is a better option that opting for the past contracts. The third step is that an organization needs to create a certain process that they know will be beneficial to their category management program since without a process, there can never be good results or a category management program to begin with because everything has a process that it should undergo first.