Quadrant Knowledge Solutions Market Insights research offers awareness on the importance of including a category management strategy to procurement technology implementation and some important guidelines that organizations should consider during implementation.
Procurement as a business function is growing to be more strategic due to the changing customer demands, expanding regulatory requirements, increasing market competition, and increasing M&A activities. The sourcing of goods and services is where the most procurement risk exists which has led to the rise of strategic sourcing platforms that work to reduce the risk by improving supplier relations, offering guided sourcing journeys and enable the sourcing team to take data backed discissions. However, a category focused procurement, an evolution to strategic sourcing strategy, effectively manages the market variability and its complexities based on a market-focused approach which has become very critical.
According to Sujan Thomas Mathew, Analyst at Quadrant Knowledge Solutions “Utilizing the advantages of digitalization, organizations are increasingly implementing strategic sourcing applications and procurement applications to help drive business resiliency and agility. However, most organizations overlook the role of incorporating a category management strategy before implementation, losing the advantages of a more strategic, market-centric, category-focused, future-proof, and collaborative procurement function.”
Table of Contents:
- Is your sourcing and procurement function truly strategic?
- Identifying the right categories.
- The role of technology in transforming your procurement function.
- Guidelines to establish a strong Category focused Procurement function.
This Market Insights is a part of Quadrant’s Procurement Services and Source-to-Pay practice.
Author: Sujan Thomas Mathew, Analyst and Neelam Singh, Practise Director, Quadrant Knowledge Solutions.