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Michigan State U. Benchmarking Study: Impact of Strategic Category Management • Cost savings • 5 to 15% price/cost savings • More uniform prices between regions – One company reported 20% to 30% price differences between locations – Another company reported a reduction in the gap of 10% 14
Michigan State U. Benchmarking Study: Impact of Strategic Category Management • Other savings • Reduction of logistics cost from 3% to 2% of cost of sales. • Lower operating costs of up to 15% • Improved quality – typically from 10 to 20% of yield • Inventory reduction from 15% to 30% • Improved on time delivery to 20% • Reduced lead times by 20% • Improved productivity – 4 to 20% • Improved communication between functions • Enhanced strategic role of procurement • Development of a learning organization 15
Page 1 and 2: The Value of Supply Strategy
Page 3 and 4: Traditional Focus is Here Company
Page 5 and 6: Business Intelligence Impact Suppli
Page 7 and 8: Strategic Sourcing follows a rigoro
Page 9 and 10: Global Enterprise Category Team Ope
Page 11 and 12: Category Plan Development Future St
Page 13: The main outputs drive category str
Page 17 and 18: There are many sources of market an
Page 19 and 20: Choosing Analysis Tools
Page 21 and 22: Best Practices Approach Gather Data
Page 23 and 24: Market Analysis Tools • Convertin
Page 25 and 26: Supplier Analysis • What the tool
Page 27 and 28: SWOT Analysis • Broad customer ba
Page 29 and 30: Sample Value Chain Analysis Materia
Page 31 and 32: Our Challenge - Defining Categories
Page 33 and 34: Look for Patterns Characteristics o
Page 35 and 36: Common Areas of Risk • Product qu
Page 37 and 38: Supplier Risk Example The following
Page 39 and 40: Risk Reduction by Shifting Supply f
Page 41 and 42: Porter’s Five Forces Model • Da
Page 43 and 44: Porter’s Five Forces - Supplier B
Page 45 and 46: Criticality to Buyers Factors Influ
Page 47 and 48: Porter’s Five Forces - Threat of
Page 49 and 50: Internal Competition • Higher lev
Page 51 and 52: Balance of Power as Input to Supply
Page 53 and 54: Preparing Documentation
Page 55 and 56: Category Name Overview Owner: Globa
Page 57 and 58: Market, Technology, and Competitive

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