Develop Strategy
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Strategic Analysis
Strategic Analysis involves the application of some well established procurement models to identify the most appropriate strategic approach going forward. The tools should challenge the category review team’s thinking and create a number of potential options.
Activities
- Confirm importance of sub-category to the Company
- Analyse importance of the Company to the suppliers
- Undertake supply & demand analysis
Key Meetings
This is mainly an analysis phase. The category review team may meet to undertake the analysis or discuss findings.
Opportunities & Options Meetings
Opportunities and options meetings involves evaluating the information gathered during the process and identifying all potential value improvement opportunities. Related opportunities are grouped and the best fit with business requirements are selected and risk assessed.
Activities
- Identify opportunities using relevant value levers
- Plan and hold options generation meeting
- Review & build on opportunities identified from research & analysis
- Group related opportunities into strategic options
- Prioritise options & evaluate based on business requirements
- Quantify options in appropriate detail
Key Meetings
An opportunities and options meeting should take place and requires full participation of the core team. Ideally the team sponsor would attend at the session end.
Strategy Implementation Planning
Developing an implementation plan is essential to ensure all workstreams are identified, and resources are in place to deliver the benefits outlined in the category strategy.
Activities
- Develop a high level view of the key workstreams’ milestones and deliverables for all stakeholders covering:
- > Sourcing & Go To Market
- > Supplier & Contract Management
- > Operational & Business Change
- Develop high level implementation plan
- Develop benefits forecast
- Complete implementation risk assessment and identify mitigating actions.
Key Meetings
The category lead will meet with all workstream leads to ensure they understand their roles and responsibilities, and to obtain their buy-in and commitment to workstream delivery.
Category Strategy
The Category Strategy should clearly articulate the selected strategy in a compelling and succinct document for the business to approve. It is the overall output of the category review team’s effort.
Activities
- Draft category strategy exec summary
- Include key strategy implementation templates
- Consider inclusion of optional research and strategic analysis summary slides
- Gain approval from sponsor and/or steering group and stakeholders
- Make any updates and finalise category strategy
- Confirm priority implementation workstreams and leads
- Agree category strategy refresh schedule
- Review and document lessons learned from category strategy development process
Key Meetings
DG3 decision gate meeting should be held with the sponsor, steering group and key stakeholders to present the findings and to obtain their agreement to the proposed strategy.