Category Management Coalition for Government Procurement May 14, 2014
The Case for Category Management ● Fragmented landscape has led to contract duplication and redundant acquisition programs ● More than 500 different acquisitions departments and agencies throughout government spending $500 billion annually Redundancy is inefficient and drives up operating costs ● ● To get the benefits of one buyer, we must act as one buyer ● We must consolidate our expertise to provide expert acquisitions guidance ● Category Management provides an overarching framework ● Organized by spend categories, we will guide buyers to the right acquisition solutions to meet their needs 2
Purchasing Landscape for Government The Case for Change Currently the purchasing landscape is ad hoc. Many agencies make independent purchases that frequently lack strategy or coordination. The landscape is characterized by costly redundancies in vehicles, buys, and efforts. Future State of Purchasing: Current State of Purchasing: • Synchronized procurement across government ● Lack of coordination across agencies • Industry involvement in developing best category ● Duplicated efforts strategies ● Many agencies; no leveraged buying power • Core competencies leveraged to match customer needs • One common management framework Category All Goods Optimize & Contract Implementation of Management Develop Services Vehicles & Category Management & Expertise Manage CAP Landscape Manage Data Leverage Collection & Supplier Analysis Maximize Relationships Customer Relationships 3
Category Management Definition of Category Five Responsibilities of Category Management Management Develops and executes the strategy for product or Optimize service categories as Contract - Identifying vehicles Vehicles & business units and optimizes - Understanding market drivers - Community of practice Manage spend under management in - CM training Landscape conjunction with industry, while exceeding customer Manage Data expectations. Grow / Share Collection and Expertise Analysis With the goal of: - TCO CATEGORY - Prices Paid Minimizing redundancies in MANAGEMENT - Custom Reports purchasing while reducing total cost of ownership to the Government and taxpayers. Maximize Leverage Customer Supplier Relationships Relationships - Demand Mgmt - Tiers of service - Strategic partnerships - Share industry best practices - Targeted solutions - Sourcing strategies 4
Why Category Management? Expertise + Data = Smarter Purchasing ● Provides federal buyers with ready access to, and expert analysis of, a full array of purchase and pricing data, qualified suppliers, acquisition vehicles; and procurement resources ● Guides buyers to the best solutions for them, and ultimately those in the best interest of the taxpayers, regardless of who manages that solution ● Offers a holistic view of the landscape so actions can be taken to reduce or eliminate redundancy and increase efficiency ● Leads to smarter decisions, better purchasing options & saved dollars Category management is how the most successful Fortune 500 companies approach acquisition 5
Optimize Contract Vehicles/Manage Landscape Provides a single, easily accessible, online location for wide range of ● contract vehicles ”One - stop shop” provides a comprehensive view of available solutions ● Enables access to acquisitions expertise and knowledge ● 6
Manage Data Collection and Analysis Developing new systems to collect and share data by category ● -contract terms and conditions -prices paid Conduct expert analysis of data ● Convert raw data into meaningful, actionable information for ● customers Customers use information to drive buying decisions ● 7
Leverage Supplier Relationships Partner with industry to learn their category expertise, identify best ● practices and understand market insights Foster open communications with industry to ensure development ● and adoption of optimal solutions 8
Maximize Customer Relationships Identify, collect and share information that customers want to see ● by category Engage customers at outset of solution development to ensure ● their needs are reflected in design requirements Become trusted advisors to customers ● Use of category expertise to guide customer to best approach for ● their situation 9
Grow and Share Expertise PMO supports development of category manager expertise ● through training, development of community of practice and establishment of content libraries Category managers share knowledge, expertise and best practices ● with the community Agencies share best practices among themselves ● 10
Category Management Governance Governance SSLC . GSA PMO - Category Facilitator Category Agency A Agency C Manager ADMINISTRATION IT Agency Agency Agency Agency Office Print Hardware Telecom A A C D Supplies Services Sub-Category Manager(s) Agency Agency Agency HR & Software Services C D B Training Solution Provider Agency A Agency A Agency C Agency D / Procurement Agent - SEWP Existing - OS2 - Alliant Enterprise /FSSI/ - Enterprise Acq Vehicles - CHESS Other Vehicles - Enterprise Acq Vehicles Populated in 11 Hallways NOTE: Previously, under FSSI, the executive agent served as both the Sub-category Manager and the Procurement Agent. This may change going forward.
Category Management Roles • Ensures Federal government implements enterprise buying Category • Provides oversight to Category Management structure, resolve conflicts amongst categories • Defines / manages the taxonomy for categories Facilitator • Reviews and approves business cases for all new category / subcategory recommendations (GSA PMO) SSLC • Approves selection criteria and SSLC Leads’ nominations for category / subcategory managers and solution providers / procurement agents • Serves as SME for an identified category, to include chairing a board of sub-category managers • Guides overarching category strategy, across subcategories, considering uniqueness of subcategories and • Supports Category relevant federal policies Managers and facilitates • Analyzes category spend and data cross-category solution • Identifies areas of opportunity within a category / subcategory Category • Works with sub-category manager(s) to make sure requirements reflect, and solutions developed address, development Manager agency needs • • Responsible for convening and leading interagency working groups and makes recommendations to drive Provides visibility and enterprise buying overall program • Defines performance metrics, collects and analyzes data, monitors performance and promotes adoption management support of • Nominates solution provider / procurement agent categories • Serves as SME for an identified sub-category • Standardizes processes • Responsible for sub-category strategy development and operational sub-category initiatives and best practices across • Analyzes sub-category spend and data categories • Identifies areas of opportunity within a subcategory Sub-Cat • Works closely with solution provider / procurement agent to make sure requirements reflect, and solutions • Maintains knowledge developed address, agency needs Manager • Responsible for convening and leading interagency working groups and makes recommendations to drive management portal / e- enterprise buying commerce hallway content • Defines performance metrics, collects and analyzes data, monitors performance and promotes adoption • • Nominates solution provider / procurement Agent Facilitates data analysis and benchmarking • Leads effort to develop government-wide category solutions • Solution Recommend categories / • Receives business requirements from Category and Sub-Category Managers • Consults with industry when developing acquisition solutions to ensure best practices incorporated Provider / subcategories taxonomy • Ensures FAR compliance Procurement • Actively participates in subcategory / category working groups 12 Agent Pre-decisional, working draft
Government-wide Pilot Categories ● OMB Approved Five Broad Categories - Administrative - GSA - IT – GSA - Transportation – DOD - Human Capital – OPM - Medical – TBD 13
Common Acquisition Platform 14
Category Hallway Concept in the Common Acquisiton Platform 15
Initial Hallways ● Static websites with targeted, valuable content o Initial profiles based on GSA category definition (sample next page) o Existing prices paid data sets o Recommendations and advice o Contract terms and conditions ● Google Site Hallway Content Repository ● Hallway prototype live and ready for iterative evolution with customer 16
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