Transcript ACQUISITION MISSION OWNER

Office of Small and Disadvantaged Business
Utilization (OSDBU)
Category Management
Linda Alexander-Giles
Laura J. Stanton
Mark Day
May 21, 2015
HHS Acquisition: Ready. Resourceful. Responsive.
AGENDA
Category Management/formerly Strategic Sourcing
Buying Smarter
Acquisition Gateways or “Hallways” Demo
Questions and Answers
U.S. Department of Health and Human Services
What is Category Management ?
o Federal Rebranding “Strategic Sourcing” to “Category
Management (CM)”
o Emphasis Managing Categories of Spend - Federal Buying as a
Single Enterprise
o Increase Efficiency and Effectiveness, Savings, Reduce Duplications
o Use Existing Strategic Sourcing Initiative - Federal and HHS
Contract Vehicles Available
o Support Small Businesses goals and participation
U.S. Department of Health and Human Services
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Strategic Sourcing vs Category
Management
Goal
Strategic Sourcing
Category Management
Achieve savings: implement specific strategies
around spend and vendor consolidation,
standardization of requirements and
specifications, and price benchmarking and
negotiation
Maximize value for spend: reduce total cost of
ownership (TCO), generate supply chain-wide
savings, reduce risks, improve supplier and
operational performance, and boost innovation
Small business: Meet or exceed small business
goals
Small business: Meet or exceed small business
goals
Frequency
Project driven: initiated once in three to five years
based on internal demand or supply market changes
Continuous: ongoing series of projects identified and
prioritized based on regular analysis and reporting
Methodology
Standard methodology: typically based on a sevento nine-step methodology starting with assessment and
ending with vendor selection and implementation
Broad framework: ongoing cycle of establishing
baseline and goals, developing a strategy for category
improvement, project execution, and performance
management
Value
Sourcing savings: annual savings through planned
demand reduction and average purchase price
reduction, tracked through finance and sourcing
systems
Value for spend: achievement of strategic objectives,
including spend under management, price savings,
TCO savings, improved supplier performance,
innovation, and user satisfaction
U.S. Department of Health and Human Services
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Principles of Category Management
o Optimizing existing contract vehicles (including replacement or
elimination of duplicate or underperforming contracts) & driving more
optimal use of contract vehicles
o Improving data collection efforts and analysis to drive improvements
in categories of spend to increase savings and reduce duplication
o Leveraging industry/commercial intelligence and key partner
relationships
o Maximizing customer insights and relationships to bring more spend
under management and improve offerings and value
o Growing and sharing expertise
U.S. Department of Health and Human Services
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Buying Smarter
• Drive Innovations - Prioritize Efforts for Buying Smarter
• Maximize Contracting with Small Businesses
• Strategic Sourcing/Category Management/Acquisition Gateways
– Strategic Sourcing – Leveraging Volume Buying
– Category Management
• Managing commonly purchased areas of spend
• Collectively developing heightened levels of expertise and sharing best
practices
• Providing acquisition, supply and demand management solutions.
– What are Acquisition Gateways
https://hallways.cap.gsa.gov/homepage/welcome.html
• Evaluate/Report/Utilize Past Performance Information
• Increase Transparency of Contractor Business Integrity Data (e.g.,
Federal Government does business with reputable firm) (FAPIIS)
• Improve Vendor Relationships
U.S. Department of Health and Human Services
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Category Management Contact
Linda Alexander-Giles
ASFR/OGAPA
Category Management Program Manager
(202) 690-7326
[email protected]
U.S. Department of Health and Human Services
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QUESTIONS
U.S. Department of Health and Human Services
200 Independence Avenue, SW.
Washington, DC 20201
U.S. Department of Health and Human Services
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