Precise Category Management Information
We've frequently considered the fundamental information and data to which Category Managers have to have access. examples include, supplier spend, category spend along with individual business enterprise unit spend - there is also a really good example mapped out in the following paragraphs. Suprisingly maybe when people begin to search for this type of info, it's not easy to locate. Having said that, it's absence is definitely known and lamented by the Category Managers that have to have fun playing \u2018Spreadsheet Detective' in order to manually close the information gap!
This document attempts to find an additional level of category data that is unique and not revealed anywhere else to the best of our knowledge. Tier 2 is far more specialized data which will vary according to the profile of the category and the potential value that is obtained by building on the data and knowledge out of Tier One. This gives truly really advanced knowledge and category strategies that fully connect with the organisation.
In many cases this results in more intelligent negotiations, improved cost control, more capture of company innovation and also pinpoints additional options available to get value improvement.
Types of Tier 2 Category Specific Knowledge
The Top 10 distinct types of knowledge desired by Category Managers:
1. Breakdown the Cost: Purchase Price Cost Analysis (PPCA - another term for "cost breakdown" is considered the process of identifying the major elements that comprise any distinct cost from a provider for the service (or product). Every suppliers price is separated into its key constituents for example the cost of raw materials and transportation etc. Once that is finished it is much easier to evaluate suppliers against one another. Cost breakdowns also build improved knowledge of fundamental value drivers which includes technical specifications, manufacturing processes plus service delivery processes etc.
2. Visiting found it certainly provides warnings you could tell your family friend. Understanding Specifications: Segmenting spend into different categories and even sub-categories will be sufficient whenever estimating potential savings. However, while identifying potential opportunities during your development of a category strategy, it is necessary to analyse spend in more detail. A considerable amount of analysis is needed to do this. It must get in to the tiniest details of the constituent part of a product or a service as these may be the most important drivers driving the cost price. This level of detail will make it possible for detailed Value Analysis activity to be successfully done. For instance, this could be linked to the performance specification for part numbers of electronic components, departure times for defined air travel sectors, or the addresses associated with high-street network branches getting security system reactive support.
3 End Product Linkage: To understand what products link to other types of products (or services) used by end consumers the suppliers sub-categories will need to be matched with the end product. Be taught more on this affiliated link by going to go here. Use this to persuade suppliers to give best prices and/or new developments, so that they feel instantly connected with business development with the end customer and can influence demand for their own products and services.
4 Benchmarking and Unit Value: Breaking costs down to the individual unit assists you to set a benchmark value. Spend is simply divided with a variable that is relevant such as height or even customer opinions. In this way several suppliers can be assessed alongside one another and differences identified. The next phase is to find the reasons for the variations, eradicate all damaging practices and share the good practices that may produce lower prices across the organization. A good example of this method used by us, was the analysis of unitised total FM costs per square metre in eighty depots for a British coach business.
5 The Value of Operations Data: Getting a alternate product or service that directly compares with the former one is not hard to validate with regard to price differences. Needless to say, identifying cost diff
We've frequently considered the fundamental information and data to which Category Managers have to have access. examples include, supplier spend, category spend along with individual business enterprise unit spend - there is also a really good example mapped out in the following paragraphs. Suprisingly maybe when people begin to search for this type of info, it's not easy to locate. Having said that, it's absence is definitely known and lamented by the Category Managers that have to have fun playing \u2018Spreadsheet Detective' in order to manually close the information gap!
This document attempts to find an additional level of category data that is unique and not revealed anywhere else to the best of our knowledge. Tier 2 is far more specialized data which will vary according to the profile of the category and the potential value that is obtained by building on the data and knowledge out of Tier One. This gives truly really advanced knowledge and category strategies that fully connect with the organisation.
In many cases this results in more intelligent negotiations, improved cost control, more capture of company innovation and also pinpoints additional options available to get value improvement.
Types of Tier 2 Category Specific Knowledge
The Top 10 distinct types of knowledge desired by Category Managers:
1. Breakdown the Cost: Purchase Price Cost Analysis (PPCA - another term for "cost breakdown" is considered the process of identifying the major elements that comprise any distinct cost from a provider for the service (or product). Every suppliers price is separated into its key constituents for example the cost of raw materials and transportation etc. Once that is finished it is much easier to evaluate suppliers against one another. Cost breakdowns also build improved knowledge of fundamental value drivers which includes technical specifications, manufacturing processes plus service delivery processes etc.
2. Visiting found it certainly provides warnings you could tell your family friend. Understanding Specifications: Segmenting spend into different categories and even sub-categories will be sufficient whenever estimating potential savings. However, while identifying potential opportunities during your development of a category strategy, it is necessary to analyse spend in more detail. A considerable amount of analysis is needed to do this. It must get in to the tiniest details of the constituent part of a product or a service as these may be the most important drivers driving the cost price. This level of detail will make it possible for detailed Value Analysis activity to be successfully done. For instance, this could be linked to the performance specification for part numbers of electronic components, departure times for defined air travel sectors, or the addresses associated with high-street network branches getting security system reactive support.
3 End Product Linkage: To understand what products link to other types of products (or services) used by end consumers the suppliers sub-categories will need to be matched with the end product. Be taught more on this affiliated link by going to go here. Use this to persuade suppliers to give best prices and/or new developments, so that they feel instantly connected with business development with the end customer and can influence demand for their own products and services.
4 Benchmarking and Unit Value: Breaking costs down to the individual unit assists you to set a benchmark value. Spend is simply divided with a variable that is relevant such as height or even customer opinions. In this way several suppliers can be assessed alongside one another and differences identified. The next phase is to find the reasons for the variations, eradicate all damaging practices and share the good practices that may produce lower prices across the organization. A good example of this method used by us, was the analysis of unitised total FM costs per square metre in eighty depots for a British coach business.
5 The Value of Operations Data: Getting a alternate product or service that directly compares with the former one is not hard to validate with regard to price differences. Needless to say, identifying cost diff