Category Management in Shipping. Liam Herbert Director, Product Management Content & Ranking Algorithm

Transcription

1 Category Management in Shipping Liam Herbert Director, Product Management Content & Ranking Algorithm

2 What is Category Management? Category Management is a strategic approach which organises procurement resources to focus on specific areas of spend. This enables category managers to focus their time and conduct in depth market analysis to fully leverage their procurement decisions on behalf of the whole organisation Source: CIPS

3 Category Management Process Identify Opportunities Capture Benefits Sustain Benefits Category Definition Analyse Strategy Execution Review

4 What are the benefits of Category Management? Better supplier control Reduce risk Opportunity identification Quality Control Improved pricing Monitor and optimise consumption Develop expertise Spend control and improved budgetary forecasting

5 Fundamental elements for effective Category Management Cross-functional (Stakeholder) commitment Sourcing Strategy Category Management Business Intelligence Functional resource allocation

6 Sourcing Strategy Standardised sourcing process Effective communication Market Intelligence Which suppliers? What options are available? Clear goals and objectives Understanding your clients need Execution RFx process Contract Management Review

7 Stakeholder Commitment Cross-functional support Vessel crew Technical Dept HSEQ Operations Procurement Logistics Finance Senior Management Buy-In All share the same goal and objectives

8 Resources Expertise Supplier Relationship Management Contract Management Allocation by category Global or Regional Effective ERP system utilisation Functional hierarchy with clear roles and responsibilities

9 Business Intelligence Structured data / Taxonomy Ideally centralised in one database Clean data Reporting mechanism Ability to analyse your spend, by: Supplier Brand/Manufacturer Product Location Date range

10 Procurement in Shipping

11 How is Category Management adopted in Shipping? Differs according to buyer persona and procurement maturity Ship Owners Costs directly impact the bottom line Maintaining asset value and longevity TCO programs More control governing data Ship Managers Operating within clients budget Process efficiency Minimise CAPEX and overheads Cost savings are passed to their clients High focus on cost avoidance Clients can have differing requirements Managing multiple systems Data is driven from the financial rather than the procurement system

12 Typical categories of spend under contract Lubes 21.8% Non-Contracted 48.3% Gases 0.7% Provisions 10.8% M/E Spares A/E Spares 8.4% Paints Chemicals 5.0% 1.7% 2.3% Charts & Pubs 1.0%

13 Business Benefit Potential Category Opportunity Mapping High Category: 1 = Lube Oils 2 = Chemicals 3 = Paints 4 = Provisions 5 = Engine Spares 6 = Tech. Stores 7 = Pumps 8 = Boilers 9 = Compressors 10 = Separators Opportunity: Volume aggregation Optimise spend & consumption Supplier Consolidation Low Hard Relative Ease of Execution Easy Shape size indicates relative spend

14 Where does ShipServ add value?

15 Supplier Recommendations Filter by Category

16 Supplier Recommendations Filter by Category AND Brand

17 Supplier Recommendations

18 Monitoring and Analytics Spend Analytics Supplier Date range, year on year Ship Brand/Manufacturer Quality Product and Product Type Location Opportunity identification Provide tools and reports to optimise your spend

19 Monitoring and Analytics - Pumps *Illustrated data is a sample and not representative of market size*

20 Monitoring and Analytics - Pumps Analysing spend by looking into specifics may uncover potential areas of your spend to review Brand spend broken down by office *Illustrated data is a sample and not representative of market size*

21 Summary Understanding your data is fundamental to effective category management Working with ShipServ will help you to identify opportunities If you are interested in learning more about what we can do to support your category management initiatives, please get in contact with your account manager or myself. Thank you for listening