How Molson Coors Improved Category Management Strategy
Molson Coors procurement has embraced technology to find ways to upgrade their category management strategy, by finding ways of avoiding supply chain disruption and accessing supplier capacity of critical goods. To undergo this transformation, the company worked with Cirtuo and their Guided Strategy Creation solution.
The brewer is the 5th largest in the world, with more than $10bn in sales revenue, and products sold in 100 countries around the world. Molson Coors’ procurement operation is a vital component within the business that ensures access services and essential raw materials. The sourcing team uses category strategies that enable supplier diversification from single-source to multi-source to avoid disruptions in the supply chain.
The procurement team faced a series of challenges to improve their category management strategy:
- Employing new ways of identifying viable strategic options for improved sourcing and sustained supply assurance
- Diversifying outcomes of category strategies from “go and bid” to more sophisticated value creation activities
- Manifesting Molson Coors' business strategies through its external spend and the relationships with their 3rd party suppliers
- Facilitating a deeper alignment of stakeholders and procurement teams around business objectives
- Scaling the capability to create high-quality category strategies, without large-scale and time-consuming investments into training
- Empowering teams to deliver better category strategies
Molson Coors business impact
The company used Cirtuo’s Guided Strategy Creation tools to improve the performance and value of procurement for the business. Using the expertise and expertise already present in the organisation through workshops, Molson Coors’ category management team was able to develop, present, and implement category strategies to find high-value business outcomes.
“Building upon a 12-year track record of delivering category management workshops and distilling those learnings and best practices into Guided Strategy Creation, our procurement teams deliver more structured and targeted conversations to drive insight and capture the responses of their strategies clearly and concisely,” says Gary Froehlich, Director, Procurement Centre of Excellence at Molson Coors.
“We are sharing category strategy with our stakeholders; before, you were trying to sell what procurement could do for the business, now our category managers can confidently show and make them part of the solution by asking for input – which increases ownership and buy-in.
- Increase to 75% of categories covered by category strategies
- Voluntary participation in category strategy review meetings attended by 75% of category managers
- A significant increase in quality of category strategies across the entire procurement team
- Less time required to create category strategies
- Built in best practices to ensure depth of category strategies
What is Guided Strategy Creation?
Cirtuo Guided Strategy Creation is a procurement tool that is designed to allow strategic procurement, through spend analysis, stakeholder mapping, risk management and cost drivers.
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