Category Management, Spend Analysis and a Different Use of Kraljic
Spend analysis, Pareto and a different use of Kraljic: where should you look first, and what does the world produce where?
In procurement, the answer to where to start lies in the data. This module uses spend analytics to make visible where resources are flowing, and determines the right negotiation approach for each category by positioning suppliers on the right plane.
What we will cover
- Introduction to spend analytics: Reading spend data and creating value with spend analytics in line with the brand strategy
- Linear Performance Pricing (LPP): The LPP approach from spend analytics and identifying the categories that need urgent intervention
- Supplier positioning (Kraljic): Dependency and performance; how to measure strategic fit most accurately
- Negotiation by classification: Choosing the right negotiation techniques according to the supplier's class
- How the supplier sees us: Reading our position through the eyes of the other side
- Supplier negotiation card: How to use the card, how to share it with management and how management can use it in goal setting (ready to use)
Case study
Using this framework, participants carry out a classification exercise on their own suppliers; for each class, we build together the appropriate negotiation approach and the ready-to-use supplier negotiation card.
A single Tuesday-morning session, 3 hours, hands-on; all you need to bring is your laptop. The output of this module (focus category + supplier classification) is the input for the modules that follow — taking them in sequence is recommended.