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Breakout Session E01
Brandon Briggs, Senior Manager, Accenture
The Enterprise Mandate
Tuesday, December 15
th
The Enterprise Mandate
•
The Enterprise Mandate
•
The Procurement Operating Model
•
Category Management
•
Cross-Category Governance
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3
The Enterprise Mandate
An enterprise procurement mandate dictates that the organization
function as a single buying entity, with increased responsibility,
accountability, and/or authority for Procurement.
Legislation
Executive Order
Internal CXO Pressure
Enterprise Mandate Drivers
OBJECTIVE
Reduce the total
costs of goods
The Enterprise Mandate
Organizations encounter three key barriers when attempting to
achieve savings goals associated with enterprise mandates.
Barrier
Limited
Reach
1
Lack of
Information
2
Lack of
Follow-Through
3
of spend is untouched
49
%
additional savings lost
3-5
%
of negotiated savings
are never realized
30
%
Category
Experts
Market
Intelligence
End to End
Process
Implication
Solution
5
5
The Enterprise Mandate
The Enterprise Mandate
•
The Enterprise Mandate
•
The Procurement Operating Model
•
Category Management
•
Cross-Category Governance
7
7
•
The Procurement
Operating Model
defines how an
entity operates in
order to
accomplish its
procurement
function
A procurement organization should be focused on providing VALUE:
The Procurement Operating Model
Make it easy to
Buy & Comply
Ensure
Supply
Mitigate
Risk
Enable
Business Strategies
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9
The Procurement Operating Model
Workforce and Organization
Technology
Stakeholder Management and Communications
Procurement Support
Procurement Operations
Procurement Strategy
Category Management and
Sourcing
The Procurement Operating Model
4. Procurement Operations 2. Category Management and
Sourcing
1a.Vision & Strategy 1b. Statutes, Policy & Governance
1c. Process Management
1d. Performance Management
1e. Sourcing Portfolio Management
4a. Requisition Processing
4b. Invoice Processing 4c. Travel & Expense (T&E)
Processing
4d. Customer Service Desk
4e. Supplier Enablement
4f. Catalog Enablement 3. Procurement Support
3a. Spend Analytics
3b. Market Analysis
3c. Spot Buy / Tactical Sourcing
3d. eRFx Support
3e. Contract Support
Pr
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Str
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Pr
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5a. Leadership Alignment 5b. Stakeholder Engagement 5c. Stakeholder Readiness
5d. Communication Strategy 2a. Category Management
2b. Sourcing
2c. Contract Management 2d. Supplier Relationship
Management
2e. Compliance Management
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11
The Enterprise Mandate
•
The Enterprise Mandate
•
The Procurement Operating Model
•
Category Management
•
Cross-Category Governance
Category Management
4. Procurement Operations 2. Category Management and
Sourcing
1a.Vision & Strategy 1b. Statutes, Policy & Governance
1c. Process Management
1d. Performance Management
1e. Sourcing Portfolio Management
4a. Requisition Processing
4b. Invoice Processing 4c. Travel & Expense (T&E)
Processing
4d. Customer Service Desk
4e. Supplier Enablement
4f. Catalog Enablement 3. Procurement Support
3a. Spend Analytics
3b. Market Analysis
3c. Spot Buy / Tactical Sourcing
3d. eRFx Support
3e. Contract Support
Pr
o
cu
re
m
en
t
Str
ate
g
y
Pr
o
cu
re
m
en
t
C
ap
ab
ili
ti
es
rs
5a. Leadership Alignment 5b. Stakeholder Engagement 5c. Stakeholder Readiness
5d. Communication Strategy 2a. Category Management
2b. Sourcing
2c. Contract Management 2d. Supplier Relationship
Management
2e. Compliance Management
13
13
Category Management
Category Management is the overarching process that governs the
planning and execution of the Sourcing and Contract Management
processes.
Objective
Reduce the total costs of goods and services with solutions that meet
customers’ needs through development and execution of the
appropriate category strategies
• Monitors project savings and impact to
the benefits case
• Utilizes category expertise to make
decisions
• Assesses category status (including
risks and issues)
• Manages a portfolio of categories
(category governance)
• Establishes and maintains
category-level strategy
• Develops and maintains category
pipeline
• Develops multi-year category savings
plan
Category Management
Common Challenges
• Procurement is organized by customer instead of category
• Lack of deep category expertise
• Planning and forecasting at the category level does not occur consistently
• Manual and/or incomplete pipeline process to conduct enterprise-wide planning
• Savings methodology and associated benefits case, do not exist or are inconsistently
applied across the sourcing teams
Leading Practices
• Centrally guided category management structure which cuts across organizational entities
• Category managers with deep expertise in their corresponding goods/services
• Proactive strategic category planning for critical business categories (e.g., looking at
future business needs/identifying trends to plan supplier selection strategy/relationship to
guarantee supply at the right cost)
• Managing and maintaining a long-term category plan and business case with category
spend and savings projections
15
15
The Enterprise Mandate
•
The Enterprise Mandate
•
The Procurement Operating Model
•
Category Management
•
Cross-Category Governance
Cross-Category Governance
4. Procurement Operations 2. Category Management and
Sourcing
1a.Vision & Strategy 1b. Statutes, Policy & Governance 1c. Process Management
1d. Performance Management
1e. Sourcing Portfolio Management
4a. Requisition Processing
4b. Invoice Processing 4c. Travel & Expense (T&E)
Processing
4d. Customer Service Desk
4e. Supplier Enablement
4f. Catalog Enablement 3. Procurement Support
3a. Spend Analytics
3b. Market Analysis
3c. Spot Buy / Tactical Sourcing
3d. eRFx Support
3e. Contract Support
Pr
o
cu
re
m
en
t
Str
ate
g
y
Pr
o
cu
re
m
en
t
C
ap
ab
ili
ti
es
rs
5a. Leadership Alignment 5b. Stakeholder Engagement 5c. Stakeholder Readiness
5d. Communication Strategy 2a. Category Management
2b. Sourcing
2c. Contract Management 2d. Supplier Relationship
Management
2e. Compliance Management
