Archive: December, 2014

Beyond category management

Like many similar surveys, The Deloitte Global CPO Survey 2014 is written to flatter existing clients and engage potential clients. Although it lacks any scientific rigour many of its observations are a fair reflection of what I see in my day to day consulting work.

Deloitte say that cost control remains the top priority but its relative importance is lower than last year. Like the research published earlier in the year by Hackett which I wrote about in my August blog called What’s the agenda, 68% of respondents who describe their internal influence as “mixed” only measure financial performance rather than the broader parameters of risk, supplier performance, innovation and quality.

Picking up on the broader parameters, 77% of respondents’ approach to risk is limited to supplier pre-qualification and on-boarding. Less than 20% use predictive analytics to assess potential supply side risks.

Deloitte define innovation in terms of analysis and input from suppliers. Unfortunately the report has little more to say on innovation other than almost two thirds of respondents are investing in supplier portals.

Interestingly 57% or respondents feel that their teams do not have the necessary skills. The category management structure is being replaced by business partnering and transaction procurement, delivered either as part of shared services or outsourced to a specialist. The skills most lacking include relationship building, influencing, communication and leadership.