Tag: Procurement Savings

cost drivers

Should-Cost Analysis in Procurement: Complete Guide

A supplier’s quoted price tells procurement what the supplier wants to charge. It does not necessarily explain what the product or service should reasonably cost. This is where should-cost analysis becomes valuable. Should-cost analysis is a structured procurement method used to estimate the reasonable cost of a product, component, service or process by examining its

Category Management

Category Management in Procurement: Complete Guide

Category management is a strategic approach to managing procurement spend by grouping related products and services into categories and developing a structured strategy for each category. Instead of treating every purchase as an individual transaction, category management looks at the entire demand, supply market, supplier base, cost structure, business requirements and risks associated with a

Category Management

Spend Analysis in Procurement: Complete Guide to Spend Analysis

Spend analysis is one of the most important foundations of strategic sourcing and procurement transformation. Before procurement can identify savings opportunities, consolidate suppliers, negotiate effectively or develop category strategies, it needs to understand where the organization is spending money, with whom, on what, how much and under what purchasing conditions. Without reliable spend visibility, procurement