HomeArticlesBlogThe 7 main methods of classification and analysis of purchases
13 December 2023
By adopting an approach of Category management, companies can focus on a given category, family or purchasing segment to perform more precise price or market analyzes and then take targeted actions to improve results. To make their task easier, the new module SAP Ariba Category Management offers a complete solution offering step-by-step support. This module is based in particular on the main methods of classification and analysis of the purchasing portfolio, deciphered by Manon Léonard, consultant at Acxias.
1 – La matrix de Kraljic
It allows purchases to be classified according to two axes: financial impact and complexity of supply. This classification allows you to better understand the purchasing portfolio, adopt appropriate procurement strategies and manage the risks associated with each purchasing category.
Main advantage : This matrix offers an overview of purchasing categories, making it possible to define differentiated approaches for each of them, depending on its importance (volume, criticality, etc.).
2 – SWOT
This model allows you to examine your internal strengths and weaknesses and compare them to external opportunities and threats. The goal is to develop strategies that capitalize on strengths and opportunities while minimizing weaknesses and threats.
Main advantage : Obtain a framework for making strategic decisions by balancing internal and external factors.
3 – Porter's Five Forces
Porter's Five Forces Matrix helps analyze competition through 5 criteria (the bargaining power of customers, the bargaining power of suppliers, the threat of substitute products, the threat of potential market entrants, the intensity of rivalry between competitors) and make strategic decisions accordingly.
Main advantage : Have a better understanding of the competitive environment.
4 – The RAQSCI model
It makes it possible to define and structure the needs of the company according to different criteria: regulatory, assurance of supply, quality, service, cost, innovation. Understanding business needs is an integral part of category management and will influence the procurement process in terms of evaluation criteria and negotiation strategy.
Main advantage : By understanding the needs of your business and the different criteria, category managers will be able to make more informed decisions.
5 – Risk analysis
In tabular form, this analysis aims to identify, evaluate and manage the risks to which a purchasing category is exposed. Once the risks are better identified, the company can implement strategies to manage them.
Main advantage : Risk analysis helps put strategies in place in the event of disruptions, ensuring that your business operations are not seriously affected by unforeseen events.
6 – Breakdown of cost structure
This analysis helps analyze the breakdown of company costs to understand how money is spent. It fits into the more global framework of expenditure analysis.
Main advantage : better understand where spending is concentrated, identify areas where savings can be made and make decisions accordingly.
7 – Analysis of forecast expenses
Analysis of planned expenses makes it possible to anticipate future purchases in each category, particularly in relation to upcoming projects or expected growth.
Main advantage : Planning spending on the purchasing category involves anticipating needs in terms of quantity and quality of products or services, as well as the associated costs.
This model allows you to examine your internal strengths and weaknesses and compare them to external opportunities and threats. The goal is to develop strategies that capitalize on strengths and opportunities while minimizing weaknesses and threats.
It makes it possible to define and structure the needs of the company according to different criteria: regulatory, assurance of supply, quality, service, cost, innovation. Understanding business needs is an integral part of category management and will influence the procurement process in terms of evaluation criteria and negotiation strategy.
In tabular form, this analysis aims to identify, evaluate and manage the risks to which a purchasing category is exposed. Once the risks are better identified, the company can implement strategies to manage them.
Analysis of planned expenses makes it possible to anticipate future purchases in each category, particularly in relation to upcoming projects or expected growth.