Blog
AI accelerates category strategies’ delivery
By Mark Hubbard |
We have been utilising an AI-driven approach that dramatically accelerates category strategies’ delivery with some of our most progressive clients.
As discussed in our article on the next stage of AI and digital category management, AI is nowadays able to analyse and scrape market information, review existing and predict future spending, and propose value levers based on your business needs. This allows category managers to develop a draft category strategy in hours of work, not weeks.
The ‘Human x Machine’, augmented approach frees up category managers to focus on activities like stakeholder engagement, supplier management, business alignment, and innovation scouting – activities that can set your procurement operation apart from the competition.
The system and supporting approaches provide:
- A consistent approach and holistic methodology for developing data-driven procurement and category strategies.
- A step-by-step, guided approach to developing strategies, from spend analysis to AI-backed recommendations and initiative management and delivery.
- High-quality stakeholder management and engagement approaches that support fact-based and meaningful discussions to deliver more value.
The integrated approach; Procurement, AI and Expert Coaching
To realising the promise of high-quality category strategies and maximise the value delivery, an integrated approach to transforming the procurement sector influence most of your spend is need. We believe that a blend of foundational knowledge, an AI system, and expert coaching is needed to develop sustainable skills and embed technology within the procurement process. This combination of skills and tech unlocks high-speed delivery and value beyond sourcing.
When category managers understand the fundamentals of the approach and how the category strategy is derived, the AI system’s use will be optimised. Category managers need support throughout the development of the strategy in co-creating strategies, interpreting recommendations, and communicating their plans. An integrated approach that helps embed the technology in the operating model, provide the skills to use the solution through excellent and time-proven training, and improve hard and soft skills through coaching ensures maximum returns on the investment you make.
How does this work?
Understanding the organisation, processes, objectives, and capabilities is the starting point for the integrated approach. Ensuring all elements are designed around business priorities is key to ensure a short time to value of the transformation.
Using a skill assessment will allow to identify the key capabilities needed by category managers. The category teams’ skills and capabilities need to be at a level where the development of category strategies is fully effective. This usually involves targeted training looking at procurement, system, and change management skills and behaviours, next to basic tool enablement training.
After providing the initial training, category teams are encouraged to utilise the AI system to its full extent and deliver category strategies with deep insight, a clear link to business requirements, and initiatives that deliver broad value. Co-creation of strategies with stakeholders is a critical success factor for maximising the impact and adoption of category strategies and effectively delivering value. The process of strategic alignment, both embedded in the tool and fostered through coaching, ensures that any activity undertaken will deliver genuine value where it matters most.
The system tracks the progress across all category strategies in the organisation – current status, strategies developed, initiatives by strategy. It is always up to date, which frees up considerable time previously spent on reporting that can now be used to look for ways to unblock stalled initiatives or start additional initiatives.
The integrated approach drives consistency in both delivery and output. Once in place, this consistency increases governance, improves communication, and increases the impact of Procurement.
Future Purchasing has years of experience working with teams on optimising their operating model to incorporate Procurement AI systems, enable category managers with the skills needed to succeed in today’s procurement world, and co-create and deliver strategies and value to maximise business impact.
If you would like to talk to me about an AI-driven approach that dramatically accelerates category strategies’ delivery email me below or click on the “Let’s Talk “button below to get direct access to my diary.
About Mark Hubbard
Director
30+ years experience in procurement and supplier management, in line and consulting roles
Previous employment: Positive Purchasing Ltd, SITA,
QP Group, BMW, SWWS, Rover
Education: BSc in Engineering Metallurgy, MBA University of Plymouth
CIPS: Member
