With respect to category management initiatives and activity, what processes or methods to you and your teams use to identify categories to establish strategic agreements? For instance, number of manual orders not on agreement? How often do you offer "targets" or requests to the strategic group for execution?

We have a continuous planning cycle in place.   We review 3-5 year objectives early in the year. Targets are provided to the strategic teams in August.   

Our processes include:

1. Opportunity Analysis:     We analyze spending data to identify categories with significant repeatable volume and estimate the potential cost savings based on our prior procurement efforts.    For non-repeatable spend, we set bidding thresholds based on volume of purchases and internal resources available.

2. Stakeholder Collaboration:
We gather feedback to understand current pain points, forecasted needs, and business strategic priorities and adjust our plans accordingly.

3. Long-term strategies
We identify & gain alignment on long-term strategic initiatives that will change our cost structures (out-sourcing, standardizing specs, consolidating spend, qualifying new suppliers).  These efforts often take multiple years and require teams to be formed to drive results. 

Regarding category management, our approach is structured, data-driven, and aligned with broader organizational objectives. Below are the key processes and methods we employ to identify categories for strategic agreements:

Processes for Identifying Categories

1. Comprehensive Spend Analysis:
We analyze spending data to identify categories with significant volume, frequent manual orders, or high variability. Key metrics include the number of off-contract purchases, transaction volumes, and vendor concentration.

2. Risk and Opportunity Assessment:
Categories are evaluated based on their potential to mitigate risks (such as supply chain disruptions or compliance gaps) and deliver value in cost savings, process efficiency, and supplier innovation.

3. Stakeholder Collaboration:
Input from stakeholders is essential. We gather insights to understand current pain points, forecasted needs, and strategic priorities, ensuring that identified categories align with organizational goals.

Frequency of Targets or Requests
We typically set "targets" or issue requests for strategic execution quarterly to align with broader planning cycles. However, flexibility is built into the process to accommodate urgent or emerging needs. An annual review cycle also allows us to reassess priorities and refine our strategic roadmap.

Driving Impact Through Strategy
Our methodology ensures that strategic agreements are impactful, addressing immediate operational needs and long-term objectives such as improving efficiency, enhancing supplier relationships, and advancing initiatives like sustainability or diversity.