At what point in the development of a category strategy should spend review occur?

Category Strategy Development: Involves analyzing spend, defining sourcing priorities, and forming a strategy.

Spend Review: Critical to understand current expenditures and identify savings opportunities.

Timing: Conducting spend review during the validation phase ensures that the projected savings or contributions are realistic and achievable.

Validation Phase: This phase involves confirming that the strategic approach will deliver the expected benefits.

Sequence: Conducting spend review after stakeholder agreement, team development, or strategy presentation might miss critical insights needed for validation.

Conclusion: Spend review should occur during the validation of the savings or contribution to ensure the strategy is grounded in accurate financial analysis.

References

Category Management in Purchasing by Jonathan O'Brien.

The Procurement and Supply Manager's Desk Reference by Fred Sollish and John Semanik.

CIPS Category Management Guide.