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Category Management Toolkit

Quick Win Planning

Quick Win Planning Summary


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What are Quick Wins?


Quick Wins are opportunities for improvement in cost reduction, added value or improved efficiency which can be implemented and realised over a relatively short timescale. As the analysis of the category and the supply market proceeds, the team should watch out for quick wins because as well as being delivered quickly, it is often at little or no extra effort and where the activity to get them is unlikely to adversely affect the eventual sourcing strategy. In addition, quick wins can significantly assist in creating wider buy-in from project stakeholders. In the collaborative environment Quick Wins may be easier to identify by sharing best practice across participant departments. Quick Wins tend to be tactical but should not be ignored simply because of that.

Where does it fit in with Category Management?


Gathering Category Information Perform the strategic analysis and options generation

What is included in this guide?


Key Principles of Quick Wins The Benefits of Quick Wins Quick Win Assessment template

Which processes does the tool apply to?


Demand Management and Strategic Sourcing

Which other tools link to this guide?


Sourcing Strategies and Options Options Evaluation Options Generation / Breakthrough Thinking Cost / Benefit Analysis Brainstorming

Quick Win Planning


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The key principles of quick wins


In order to be delivered successfully, a number of key principles need to be adhered to: A commitment starting from the top of the organisation Open environment involving trust, participation and collaboration Nothing sacred mindset Ideas are actionable and prioritised focused on those within the teams control Decisions are made immediately Action plans are created and implemented Successes recognised and communicated.

The benefits of quick wins


Quick wins are important because the benefits they produce accumulate while the sourcing strategy continues to be developed, funding the changes that will produce higher overall long-term benefits. Additional benefits include: Contribute significantly to achievement of year one objectives Provide the team with a visa to continue on the category management process with implementation of medium/long term strategies. Get management sign off to process Conditions the supply base that we are serious about changing the status quo/current ways of doing business Team morale team sees process delivering in meeting and exceeding objectives First year cash flow Buy in from other functional managers who see process delivering whilst meeting or exceeding their business requirements Empowers the team in affecting change within previously sacred areas. Note - confidentiality within the team will be required when sensitive information is gathered and worked on.

What form can quick wins take?


Quick wins can result from a number of potential activities which might include: Tactical purchasing actions: easily identifiable purchasing actions that can be quickly implemented i.e.; supplier rationalisation, differentials across businesses, leverage price reduction, currency fluctuations, aggregation, demand management, contract optimisation

First year strategic options: group leverage rather than individual businesses Process improvements: elimination of unnecessary process, procedures, meetings, reports, approval, increases efficiency and reduces admin/indirect costs. Supplier and site improvements e.g. EDI, forecasting etc. Increased flexibility and nimble processes to drive fast and effective execution Increased value added: delivers additional improvements to business at no added costs i.e. supplier to conduct material testing at no extra cost Elimination of non value added and duplicated operations i.e. duplicated approvals at supplier and then at own site Improved quality Reduced complexity: increased standardisation across business without impacting upon customer choice and sales revenue Value analysis: change product colour, elimination of over specification of materials, tolerances and product, packaging to meet customer needs and not wants. Increase material yield In house make versus external procurement analysis. Either in source to optimise capacity utilisation or use leverage to drive down supplier price Reduced stocks and improved logistics.

Quick Wins are important because:


Savings accumulate and fund the changes that produce higher long-term benefits They assist in creating wider buy-in from project stakeholders

Examples of Quick Wins would include:


Spend Avoidance: using up stock instead Piggy-Backing: finding someone else who buys the same items at a lower price By-passing: going to the manufacturer of a spare rather than the prime contractor

Quick win assessment


Teams need to agree on a criteria to define both the ease of which implementation can be effected and the business benefits, which will typically consider cost, product / service timing, increased efficiency, quality or intangibles such as improved customer service (internal and external) which may in reality create indirect cost savings.
H Quick Wins Gems

Ease of Implementation Caution! Deserve Extra Effort

L L Benefits H

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