Those of us who have been in the procurement profession for a while know that other departments within our organization don’t always hold the purchasing department in the highest esteem, regardless of the quality of work that the Procurement Department has done. It’s not uncommon to learn that the Procurement Department was the topic of a complaining session at the water cooler.

In the worst cases, personnel from other departments may work in opposition to the Procurement Department, seeking to contribute to the failure of Procurement Initiatives. While it is never acceptable for another department to try to derail the work of our brethren in the field, some of the criticism of procurement has been rightfully earned. (NLPA, 14 Procurement Best Practices, 2020)

Category / Commodity teams ensure that efficient and effective decisions are made regarding all critical aspects of cost, quality, delivery, reliability, and service related to the procurement of mission-critical inputs, products, and services. Team members are representative of different departments within an organization.

Note: Unfortunately, some of the less skilled and trained in the procurement profession focus on price and cost savings while compromising quality, delivery, and reliability.

Strategic Category / Commodity Teams are led by Procurement Leaders

Process

Step 1: Conduct Pre-Team formulation work by meeting with each department head and stating the purpose of the team and your vision

Step 2: Call a meeting to form the Category / Commodity Team

Step 3: Ensure a simply focused agenda by using Project Charter for Category / Commodity Team Initiatives

Step 4: Collaborate to create a Team Mission and Guiding Principles

Step 5: Collaborate on a calendar for future meetings

Step 6: Manage the team forming, storming, norming, and performing phases

Strategic Category / Commodity Teams are led by Procurement Leaders

Benefits:

Organizations can realize the following benefits from the Leverage Strategic Category / Commodity Teams:

1. The Leverage of Strategic Category / Commodity Teams enables Procurement and Supply Chain Leaders to “see the whole picture.”
2. Strategic Category / Commodity Teams pave the way for effective problem solving and critical thinking
3. These teams enable a Culture of Innovation and Synergy
4. Enhanced New Product Development

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