Business Challenge: Issues with finding rights suppliers providing cost benefits, for indirect categories
A leading retailer was facing issues with identification and qualification of right suppliers for its key indirect categories. They were not following a systematic approach for supplier identification, evaluation and shortlisting, and were not aware of the best practices followed in the industry.
Situation: The client wanted to develop robust category plans for key indirect categories
They faced challenges with the understanding of the category management best practices, suppliers identification, supplier management and supplier qualification/engagement practices. They wanted to evaluate their current category management practices and develop strategies for improved category management.
Approach: Deployed a systematic approach for assessment of current spend behavior and identification of improvement areas
We took a systematic approach that involved assessment of current spend areas, spend levels and practices followed in procurement. We then conducted deep assessment of the best practices followed by peer group companies to compare against the current practices and industry best practices. Based on this, we developed recommendations for the client on short and long term goals for implementation of a robust category plan.
Impact: Client was able to achieve significant improvement in the way their indirect categories were managed
The client gained detailed insights on their current practices and what are the best practices followed by peer group companies. They were able to identify potential areas of improvement for process optimization and cost savings. They implemented our recommendations to achieve significant improvement in the overall process.