Strategies to Effectively Manage Your Categories

 In Procurement Blog, Procurement Solutions, Spend Analytics, Webinar

Spend Analytics and Procurement Webinar by Doug Van Wingerden, Senior Vice President of Procurement Transformation, Insight Sourcing Group

WATCH NOW: WHEN SOURCING IN PROCUREMENT FALLS SHORT

Strategies to Effectively Manage Your Categories

In this procurement webinar, Doug Van Wingerden, Senior Vice President of Procurement Transformation at Insight Sourcing Group, led a live discussion on developing a category management strategy to make savings stick AFTER the sourcing event. When it comes to making savings stick, we have found that there is a large capability gap between leading and lagging procurement organizations, which can lead to large differences between projected and realized savings. On average, leading organizations can drive an additional 2-4% of savings, whereas lagging organizations on average experience 15% or more of savings leakage. 

Why is this the case? What is actually causing the savings leakage? There’s a variety of reasons, however, these are what we continue to find to be the main areas that cause savings leakage:

Lack of Spend Visibility

Many companies simply do not track their compliant spend. This is unfortunate, as this can be a fairly simple and easy process to do.

Poor Contracting

More often than not, companies have poor contracting processes and fail to secure their data rights, audit rights, and have no clear methods for dealing with price increases.

Poor Implementation Strategy

This is a common theme we see specifically on the internal side of the house. Ever heard of the “spend it or lose” mentality? If companies do not set clear rules up front for how savings will be used and applied to the budget, this can mentality can start to creep in.

These are just a few of the common reasons we see. In fact, the pain doesn’t end with savings leakage. The pain can become chronic to the organization, as it can produce strain on internal business partners, as well as your finance organization, due to misconceived expectations. Similarly, your vendors will likely feel pain and frustration, because the promised business volumes are not materializing. The strain on these missed expectations can hurt your ability to expand your influence. Fortunately, there’s a playbook to plug your savings leakage, which we share in this webinar.

Still not convinced this webinar is for you? This live webinar contains feedback and poll participation from Chief Procurement Officers, Business Stakeholders, and Procurement Analysts. In fact, over 54% of our audience identified themselves as Procurement and Category Managers in their organizations.

Watch Now and see for yourself what all the fuss is about.

Click Here to download the event slides.

Speaker Bio:

Doug Van Wingerden Doug Van Wingerden, Senior Vice President of Procurement Transformation at Insight Sourcing Group, has over 20 years of consulting and operations experience and has supported large-scale, transformational programs for clients around the world in a variety of industries. His areas of specialty include process transformation, service delivery strategy, change management, organizational design, and technology rationalization. Doug has worked with and for some of the most prestigious brands in the world including AT&T, BASF, BestBuy, IBM, UnitedHealthcare, among others.

About Insight Sourcing Group:

Insight Sourcing Group is one of the premier management consulting firms focused exclusively on Strategic Sourcing and procurement-related services in North America. Founded in 2002, the firm works with senior executives and procurement leaders to accelerate Strategic Sourcing savings, increase Spend Visibility, provide category intelligence, and implement procurement best practices.

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