Exploring Value Opportunities in Sustainable Category Management

image: strategyEmphasis on environmental awareness, social responsibility, and business sustainability actions within the supply chain has incentivized progressive companies to begin to evaluate more than just their inbound supply.  Our sustainability consulting finds the once limited procurement functions are now expanding their organizational reach to a variety of business sustainability stakeholders.  As a result, we along with most professional consulting firms in the field believe there to be big savings to be had. 

“Inconsistent performance and missed opportunities across the portfolio of spend categories cost the average procurement organization about $50 million per year. In addition to attracting and retaining talented category managers, leading organizations also focus heavily on building process discipline into category strategy development and execution.” –Procurement Strategy Council

Expanding upon this concept, our sustainability consulting is reminded of the Spend Management post Is Your Category Management Delivering.  This article explores the value aspects of implementing affective category management strategies.  The resulting guidance addresses four key areas of focus:

  • Identify and quantify the level of value delivered from category management.
  • Understand the specific approaches and practices used to design, educate and implement category management.
  • Identify the resource requirements to deliver significant category management value.
  • Assess the similarities and differences in category management approaches and benefits across sectors.

Our sustainability consulting experiences reveals that business sustainability action, enabled by strategic sourcing and procurement guidelines to align suppliers with defined business sustainability strategies, has become a much more common business practice.  Moving forward, we believe we will see these efforts continue to make their way into the business as stakeholder interests further align.

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