The naked buyer

TheNakedBuyer
Everythingsalespeopleneedtoknowaboutprocurement
MichelvandenBroek

Downloadfreebooksat


Michel van den Broek

The Naked Buyer
Everything sales people need to know about procurement

2
Download free eBooks at bookboon.com


The Naked Buyer: Everything sales people need to know about procurement
1st edition
© 2013 Michel van den Broek & bookboon.com
ISBN 978-87-403-0428-2

3
Download free eBooks at bookboon.com


The Naked Buyer

Contents

Contents
Preface

7



What Distinguishes This Book from All those Other Books?

8

1

The Purchasing Definition

9

2

The Purchasing Process

11

3

Three Levels of Purchasing

14

360°
thinking

4Purchasing Methodology: Purchasing Tools
5Category Segmentation
(Kraljic Mapping)
6

.

Category Plan

19

21
28

360°
thinking

.

360°
thinking

.

Discover the truth at www.deloitte.ca/careers

© Deloitte & Touche LLP and affiliated entities.

Discover the truth at www.deloitte.ca/careers

Deloitte & Touche LLP and affiliated entities.

© Deloitte & Touche LLP and affiliated entities.

Discover the truth
4 at www.deloitte.ca/careers
Click on the ad to read more
Download free eBooks at bookboon.com
© Deloitte & Touche LLP and affiliated entities.

Dis


The Naked Buyer

Contents

7A Salesperson’s Role in a Category Plan

36

8CTQs: What Does the Buyer Really Want?

40

9Summary: Top 5 Practical Advices

44

10Epilogue

45

11Notes

46

Increase your impact with MSM Executive Education

For almost 60 years Maastricht School of Management has been enhancing the management capacity
of professionals and organizations around the world through state-of-the-art management education.
Our broad range of Open Enrollment Executive Programs offers you a unique interactive, stimulating and
multicultural learning experience.
Be prepared for tomorrow’s management challenges and apply today.
For more information, visit www.msm.nl or contact us at +31 43 38 70 808 or via
For more information, visit www.msm.nl or contact us at +31 43 38 70 808
the
globally networked management school
or via
Executive Education-170x115-B2.indd 1

18-08-11 15:13

5
Download free eBooks at bookboon.com

Click on the ad to read more


For Mo, Daan and Juul.

“It is not because things are difficult that we do not dare,
it is because we do not dare that they are difficult”
Seneca

6
Download free eBooks at bookboon.com


The Naked Buyer

Preface

Preface
Many books have been written about sales, account management, and how to deal with buyers or
customers. This book is not the next one in line, but instead adds something new. It is a book filled with
practical instructions rather than theoretical or academic “posturing”. Any theories raised, are illustrative
of, or a translation into, practice.
The Naked Buyer: what a strange name for a book! The title is derived from Desmond Morris’s best
seller, The Naked Ape (1967), in which he describes human behavior from a zoologist’s point of view.
In this book, I will describe the (human) behavior of buyers or purchasers (in this book I will refer
to them solely as “buyers”). Also, I will go more deeply into the backgrounds and reasons for buyers’
behavior. After all, their purchasing behavior is driven by underlying systems and structures.
In each sales coaching session, workshop and assessment that I held and gave, it became clear to me
that, in general, salespeople know little to nothing about purchasing or buyers.
What is a matrix Kraljic, or a category plan? What are Inco terms? These are all basic purchasing concepts
that a sales professional should know about. If a salesperson knows that little about the professional
opposite him at the table, then that salesperson does not deserve the classification “professional”.
Take note that in this book I refer to the buyer as “he” and “him”. The reader should be aware that I refer
to both male and female buyers.

7
Download free eBooks at bookboon.com


The Naked Buyer

What Distinguishes This Book from All those Other Books?

What Distinguishes This Book from
All those Other Books?
This book is written by an experienced purchasing director, who, during his more than twenty years
of purchasing experience, has met numerous salespersons in a business-to-business environment, has
always been at the opposite side of the table, and is able to give perfect and straightforward feedback
This is not a theoretical book, but a practical and no-nonsense translation of the basic elements of
the commercial sales process. Each sales professional (in sales, farmer, hunter, account manager, sales
manager, or anyone who comes into contact with buyers or people who are fulfilling a purchasing role)
will find crucial information and advice here that will improve his sales performance. If you want to
change mediocre into good – or good into outstanding – you will have to start with the basics.
This book provides you with a look behind the scenes of a business-to-business purchasing environment.
If you want to communicate with your buyers effectively, you will first have to explore their terrain.
How does the buyer make his mind up, what are his considerations, how and why does he make certain
decisions?

8
Download free eBooks at bookboon.com


The Naked Buyer

The Purchasing Definition

1 The Purchasing Definition
For over twenty years I have interacted with salespersons in countless sessions, either to clarify the buyer’s
company needs, or for informative talks or negotiations. The thing that surprised me most during those
sessions, was that salespeople have no, or insufficient, understanding of buyers. In this book I will give
you a tour behind the scenes. Enter the buyer’s “Holy Grail”.
Take the example of a hunter who goes hunting large and dangerous animals. Suppose what happens
if he does not prepare himself adequately on the hunting environment? Suppose what happens if he is
not wearing the right clothes, does not carry appropriate weapons and does not know if he is carrying
enough ammunition?
A huge amount of purchasing theory is available and in the following pages I will translate that theory
into practical, pragmatic and comprehensive material. I will confine myself to the basics. Many books
have been, and still are being, written about purchasing, procurement, buying, sourcing, supply chain –
but always remember that the basics, more than anything else, are the key to success.
Two definitions of purchasing should be kept in mind at all times:
Purchasing is:
1) Everything for which a third party sends an invoice in return for the provision of services or
goods;
2) Making available and retaining, against lowest “Total Cost of Ownership (TCO)”, the right
goods or services, at the right price, at the right quality, in the right quantity, at the right
place from the right supplier, at the right time for both the short and the long term.
Regardless of these definitions, a buyer must never forget that he is able to supply his products or services
at all times – even if the other criteria (such as price, or specifications) are not “right” as stated in the
second definition.
If a buyer is unable to supply, this may result in the company’s loss of business or a weakening of its
reliability
The concept of TCO (Total Cost of Ownership) will be addressed in one of the following chapters.

9
Download free eBooks at bookboon.com

The Naked Buyer

The Purchasing Definition

So, please remember for the rest of your “sales life”, that, for a buyer, the notion of “right” is crucial. In
workshops and sessions with salespeople, I always ask the following simple question: what is the definition
of purchasing? So far, only a few managed to give the right answer. Most answers can be grouped into one
phrase: Buying the best quality products or services against the lowest costs. This is not correct, as buyers
should buy the right products at the right quality for the right price and against all other right criteria.
A simple definition, but one that is crucial for a proper understanding of the chapters on CTQ (Critical
to Quality) and for recognizing customer needs.

GOT-THE-ENERGY-TO-LEAD.COM
We believe that energy suppliers should be renewable, too. We are therefore looking for enthusiastic
new colleagues with plenty of ideas who want to join RWE in changing the world. Visit us online to find
out what we are offering and how we are working together to ensure the energy of the future.

10
Download free eBooks at bookboon.com

Click on the ad to read more


The Naked Buyer

The Purchasing Process

2 The Purchasing Process

Fig. 1: Purchasing Process Steps

The purchasing process explained in more detail. The entire purchasing process consists of six steps:
three commercial or initial steps and three logistics or supply chain steps.
Step 1: Specifying
By far the most important step, and at the same time the most unfamiliar and undervalued one.
Specifying takes place in cooperation with the parties within a certain organization, also referred to as the
“stakeholders”. Those parties may include the management, marketing, R&D, technology or production
departments. This step, in fact, determines the definition of “right”, as mentioned in the definition.
It is of the utmost importance to help and support your buyer at this stage. As a salesperson, you can
inspire enormous confidence with your buyer if you – proactively – propose alternatives or standards
for the currently offered products and services.
The term “gold-plating” is well-known among buyers. This means that the product or service is (highly)
over specified compared to what is “right” and required. As a result, products will end up in a strategic
niche, with the result that costs are higher than “right”, and the number of suppliers who are able to
produce this product, is lower than “right”. In chapter 5 (Category Plan), specifying will be discussed
in more detail.
In this phase, buyers who are able to really “challenge” the specifications (in order to get the “right”
specifications), will achieve larger savings than just commercial ones. Help your buyer by offering
standards or cheaper alternatives. This is also a good idea from a supply risk management point of view.
Please note that this works both ways: cost savings (the right costs) and supply continuity – two aspects
that are of the utmost importance to a buyer.

11
Download free eBooks at bookboon.com


The Naked Buyer

The Purchasing Process

Step 2: Selecting
This is the step where outsiders are most aware of the buyers’ activities: submitting requests for quotations,
receiving quotes, asking for explanations, negotiating and making proposals for the selection of suppliers.
Very well, but salespeople can introduce loads of improvements at this stage. You can exercise control
over the contents of the offers: Take note of the required CTQs (Critical for Quality); Offer everything
your buyer asks for, both as regards contents and format; And keep asking questions. All the above are
ingredients for a successful offer.
As mentioned, I have been a buyer and a sales consultant for many years and as such, I have seen many,
many offers. I must say that, in general, those offers made a poor comparison with their corresponding
requests for quotation. In fact, the job of making offers is so poorly done, that the subject deserves a
separate book in the series The Naked Buyer: The Winning Offer.
Step 3: Contracting
This step consists of negotiating prices and contract terms. This subject, also, deserves a separate book,
because it is my experience that a lot of errors are made in, what I like to refer to as, the ritual dance
between salespersons and buyers. It is merely a matter of careful listening, avoiding skepticism and distrust
towards your buyers, being transparent, and having a good understanding of what buyers really want.
Much too often, I have observed that a buyer and salesperson, who were actually close to a deal, failed
to do business because of their clashing ego’s. They tended to fight rather than dance
I will not dwell on steps 4 and 5 – ordering and ensuring that your goods and services will be supplied
on the right time and in the right qualities, respectively. These steps fall under logistics procurement or
supply chain management activities. In this book, I prefer to concentrate on the commercial aspects of
purchasing.
Nevertheless, these are important steps, as the supplier’s performance will be determined in these phases.
“Walk the talk”, as the saying goes, meaning that you will have to take care to execute what you, as a
salesperson, have promised. Supplier performance measurement is the vital last step in the purchasing
process.

12

Download free eBooks at bookboon.com


The Naked Buyer

The Purchasing Process

Step 6: Evaluation
This is more often than not an undervalued aspect in the purchasing world. But I have also noticed
that salespeople think little of it. As outlined in the previous steps, the performance is of the utmost
importance. It is inexplicable that, in general, both buyers and salespersons tend to underestimate
this step in the purchasing process. Measuring and evaluating KPIs (Key Performance Indicators) is
indispensable for entering into a long-term commercial relationship. I cannot emphasize it often enough:
make sure that you as the seller – proactively – communicate your performance measurements (supply,
quality measurements compared to specifications, in addition to other criteria that are important for
the commercial relationship) to your customers.
Make sure that your information, preferably supported with graphics, is available in a one-pager. Also
show breakdowns per plant, country, and business. Please include a breakdown of “good runners”, and
separate product groups. Surprise your buyer with a regular (monthly or quarterly) overview of all kinds
of performance measurement items.
It is important to get into a dialogue with your buyer, in order to find out which KPIs he would like to
see measured. Also, make sure that you have customizable standard measurements at hand.

With us you can
shape the future.
Every single day.
For more information go to:
www.eon-career.com

Your energy shapes the future.

13
Download free eBooks at bookboon.com

Click on the ad to read more


The Naked Buyer

Three Levels of Purchasing

3 Three Levels of Purchasing
Doubtless you will come across one of the following terms: direct purchase or product related purchasing,
as opposed to indirect purchase or non product related purchase. Purchasing is not just about the
acquisition of important or essential goods and services for producing or providing other goods or
services. These are the so-called direct purchasing services, traditionally regarded as the most important
ones: providing those goods and services that appear on the BOM, the Bill of Material.
In recent years, however, the attention has shifted to purchasing goods and services that are not directly
involved in making the direct goods or services. Examples are facility services, hiring staff or consultants,
insurances, etc.
It is impossible to summarize THE full purchasing scope in one single chapter. After all, purchasing
is found in a wide variety within all kinds of industries. Moreover, an organization’s purchasing scope
and professionalism depends on its size. In addition, a distinction can be made between international
purchasing or purchasing for multisite businesses, centralized and decentralized purchasing, or a mix
of all the above.
On the right-hand page you will find a graphical representation of the different levels of purchasing, and
the development of purchasing departments within organizations.
Always keep in mind that purchasing can be divided into three levels: an operational level, a tactical
level and a strategic level. It is crucial to know at which level your – potential – customer’s purchasing
department functions. A high sales level compared to a low purchasing level is fine; a low sales level

compared to a high purchasing level, is a major commercial sin.
While climbing the purchasing “mountain”, please keep in mind that the underlying levels are still
important – they may be regarded as constant values. In Chapter 5, I will expand on category segmentation.
You will then find that a parallel can be drawn with the various purchasing levels.

14
Download free eBooks at bookboon.com


The Naked Buyer

Three Levels of Purchasing

3URFXUHPHQW'HYHORSPHQW(YROXWLRQWKURXJK
UHYROXWLRQ$EXPS\URDG



)XOOSDUWQHULQJZLWK
,QWHUQDOFXVWRPHUV



6XSSOLHUV
LQWHJUDWHGSURYLGH
UHVRXUFHVLQ13'





6XSSOLHU,QWHJUDWLRQ





,QYROYHVXSSOLHUVLQ
13'

 

([SHFWDWLRQVPDWUL[
LQWHUQDODQG
H[WHUQDO



&RRSHUDWLRQLQWHUQDO
FXVWRPHUV



0RUHDFWLYHUROH
VXSSOLHUV





6XSSOLHUVSDVVLYH



$OLJQPHQWLQWHUQDO
FXVWRPHUV





6RXUFLQJ



 

)XOO3URFXUHPHQW
VFRSHLQFOLQGLUHFWV




8VHRI(WRROV
&RQWUDFWV
PDQDJHPHQW
&OHDUYLHZRQ
VXSSO\PDUNHWV

6DYLQJV3LFNHUV
0DUNHWDQDO\VLV



1HJRWLDWLRQVNLOOV

6HUYHWKH)DFWRU\


2SHUDWLRQDO
IRFXVVHG
RUGHULQJ

5HSRUWLQJWRSODQW
PDQDJHU





0XOWLGLVFLSOLQDU\
WHDPV








&DWHJRU\0DQDJHPHQW



3URIHVVLRQDO
SURFXUHPHQW



+LJKOHYHOGLVFLSOLQHV
LQYROYHPHQW



&DWHJRU\SODQV

,QWHUQDOFXVWRPHUV
OHDGLQJ





VWUDWHJLF






*DLQXQGHUVWDQGLQJ

RIEXVLQHVVVWUDWHJLHV
,QWHUQDOFXVWRPHUV



6XSSOLHUVPRUH
LQYROYHG



WDFWLFDO





,QWHUQDOFXVWRPHUV
OHDGLQJ
6XSSOLHUVSDVVLYH





RSHUDWLRQDO




Fig. 2: Three Levels Of Purchasing: The Purchasing Mountain

Once you know, or are about to find out, at which level the business for your goods or services will be
transacted, it is vital to utilize this knowledge to your best advantage.
Purchasing Development
First, a little bit of background history. Organizations have been purchasing at a professional level for a
considerable time now. Over the years, an evolution within the purchasing function has become apparent.
Purchasing often starts on a small scale: each department buys its goods and services separately and a
dedicated buyer or purchasing department is lacking. At a certain point, the purchasing spend becomes so
substantial that a dedicated purchasing person is needed. Often, that person comes from the operational
layers of the company, and is asked for this job on the basis of his expertise. The purchasing spend is
growing, even though the playing field is small. Initially, purchases are obtained from companies “around
the corner”, at a regional level. Later, the focus shifts to a national, European, or even global supply base
level.

15
Download free eBooks at bookboon.com


The Naked Buyer

Three Levels of Purchasing

As you can see in Figure 2, the purchasing levels can be depicted as a high mountain with several stations.
The higher you climb, the harder your path will become. These higher regions require skills on your
part, besides professional knowledge. In general, communicative skills (both internal and external) will
become increasingly important during your climb towards the mountain top.
Serve the Factory
If you are dealing with a buyer at, for example, Serve the Factory level, then this buyer will be inclined to
estimate logistic and administrative processes more highly than prices or maintaining a good commercial
relationship. The continuous availability of goods and services is paramount.

This purchasing level is characterized by an operational focus: ordering and ensuring availability. The
buyer regularly reports to the operational layer and, therefore, also to the stakeholders layer. This will
not promote an independent behavior of the purchasing department. The single stakeholder is in total
command and he is the one to decide on the purchasing priorities. Suppliers at this level, are passive
and communication is limited to receiving orders and delivering goods and services.
Saving Pickers
If buyers see your products at the Savings Pickers level, then prices and costs are important elements,
in addition to availability.

www.job.oticon.dk

16
Download free eBooks at bookboon.com

Click on the ad to read more


The Naked Buyer

Three Levels of Purchasing

Purchasing is really professionalizing at this level. The added value of purchasing will be recognized by the
management. However, the added value is primarily seen through savings – the influence of purchasing
on the operating profit or margin, therefore. Buyers are carefully looking into supply base markets (the
pond in which they fish), and the emphasis is on negotiating prices.
At this level, the internal stakeholders are still directive and influential; the suppliers are hesitant and
not proactive.
Sourcing
In this phase, purchasing is getting an identity. The emphasis is on getting a full picture of the supply base
market. Buyers spend a lot of time creating this overview. The so-called scope (all purchased items) is

not limited to direct purchasing categories, but also includes the indirect purchasing categories covered
by the purchasing responsibility.
At this stage, multiple and differentiated sourcing and negotiation strategies are used: E-auctions, E-tools,
strategic sourcing. These topics will be addressed more extensively in other books in The Naked Buyer
series.
The collaboration with the internal stakeholders is getting better and the suppliers are becoming more
involved in the purchasing processes. The communication lines, both internal and external, are improving.
Category Management
Now, we enter the higher echelons of the purchasing mountain. There is full alignment with the internal
stakeholders. Besides pricing and costs, issues such as performance management and KPI measurements
are important.
At this level, buyers draw up category plans. The content of these plans will be dealt with extensively
in Chapter 6.
At this stage, it is important for buyers to exchange strategic plans with the internal stakeholders or the
management. It is the buyer’s task to translate these strategic plans to the market.
More types of buyers appear on the scene at this level. Product or purchasing knowledge is still important,
but communicative skills (both internal and external) are becoming more significant. Price is just one
of many criteria on the basis of which choices are made to select suppliers.
A proactive stance in the commercial process is essential and expected from suppliers.

17
Download free eBooks at bookboon.com


The Naked Buyer

Three Levels of Purchasing

Supplier Integration
Now, we have arrived at the top of the purchasing mountain, both literally and figuratively. At this level,

a lot is expected of suppliers, especially concerning commercial relationships. The strains for buyers are
high as well, at this stage. It is their task to bring forward the main CTQs (Critical to Quality), by means
of workshops and multidisciplinary team meetings. Which criteria are essential, is an important question.
Moreover, buyers expect a proactive attitude from suppliers concerning innovations and availability of
resources in the field of R&D, product development, production or technical departments.
This is a true integration of supplier and customer, with top management commitment on both sides
being a prerequisite. It is important that both supplier and buyer share their strategic plans.
It is obvious that these types of buyers are, in general, to be found in the (higher) purchasing management
layers.

18
Download free eBooks at bookboon.com

Click on the ad to read more


The Naked Buyer

Purchasing

Methodology: Purchasing Tool

4Purchasing Methodology:
Purchasing Tools
In the previous chapters, I have explained what purchasing entails and which purchasing levels can be
distinguished. In this chapter, I will deal with the “how” question.
How do buyers structure their purchasing, and which tools do they use? In this chapter, I will bring up
several typical purchasing terms.
It is important for salespersons to know what is on the buyer’s mind. Moreover, it is essential that they
speak the same language.

I will make use of the purchasing mountain illustration from the previous chapter. Added, however, are
the tools and processes that are used in most purchasing departments (see page 26).
I have furnished the purchasing mountain with tools and processes. These terms are commonly used in
the purchasing community and are important for you to know.
The terms “Kraljic mapping” and “category plans” will be discussed in detail in this book. The concepts
of “strategic sourcing”, “E-sourcing” and “supplier integration” will be discussed in next issues of The
Naked Buyer series.
The principal terms which will come up:
Spend analysis:
What is the amount a buyer purchases for a certain category? The term “spend” will come up in the
discussion on category plans. Spend knowledge and understanding are crucial for a buyer.
Contract database:
This tool offers an overview of all contracts with suppliers. A proactive warning function on expiring
contracts is included: The buyer receives a warning that a contract is due to expire, a set period prior to
that date. This enables the buyer to either renew the contract or decide for a tender.

19
Download free eBooks at bookboon.com


The Naked Buyer

Purchasing

Methodology: Purchasing Tool

Preferred suppliers/compliance measurement:
Some customers start a list of preferred suppliers. Make sure you are on that list! In the compliance
measurement, the buyer measures how much of the spend has been supplied by the preferred suppliers.
This is known as “compliance”. There is a non-compliance if other sources (than purchasing) within the

company buy from suppliers other than the preferred suppliers.
Monthly reporting rhythm:
The buyer’s results are made transparent through periodic (for example, monthly) reports. In addition to
the spend analysis, the progress of the savings projects is measured. Furthermore, the inflation/deflation
rates are reported on a monthly basis. The results are usually measured against the annual financial
purchasing and/or the performance of the previous year.

Fig. 3: Purchasing Tools

20
Download free eBooks at bookboon.com


The Naked Buyer

Category Segmentation
(Kraljic

Mapping

5Category Segmentation
(Kraljic Mapping)
Kraljic mapping is a widely used way of category segmentation. Peter Kraljic’s matrix was first described
in the article “Purchasing Must Become Supply Management”, in the Harvard Business Review of
September-October 1983. A Kraljic matrix, or other derived forms, can be used to analyze purchasing
portfolios of companies.
Why do purchasing departments make a category segmentation?
Purchasing departments see Kraljic mapping as a basis for the development of differentiated purchasing
strategies for their products and services. The underlying idea for this portfolio approach – and for many
purchasing departments the most-used general strategy – is:

Minimize the supply vulnerability and use the potential purchasing power to your advantage.

+LJK

/HYHUDJH

6WUDWHJLF

5RXWLQH

%RWWOHQHFN

)LQDQFLDO
,PSDFW
/RZ

/RZ

5HODWLRQVKLS&RPSOH[LW\

+LJK

Fig. 4: Category Segmentation

As shown in the chart on page 28, the categories are classified on the basis of two dimensions: On the
one hand, the influence of the purchasing category on the profit, and on the other, the impact on the
supply risk. The result is a two by two matrix arrangement with four categories: bottleneck, routine,
strategic, and leverage.

21

Download free eBooks at bookboon.com


The Naked Buyer

Category Segmentation
(Kraljic

Mapping

In order to make full use of the mapping exercise, it is important to make it a dynamic tool. Some
companies map each year, before they draw up their annual purchasing plans. For example, in September
or October for a purchasing plan starting in January. Regular mapping is crucial, because of possible
changing internal factors, such as a dramatic decrease or increase in volume, or altered specifications,
which may have effected the availability of products or the number of suppliers able to supply the
products or services. External factors may have changed as well, such as mergers of large companies
(which usually reduces the competition in a supply market), sharp price fluctuations (for example, oil
prices, which have a major impact on oil-based products), or capacity changes due to increasing demand.
Details of a Mapping
On these pages follows a practical application of the Kraljic mapping. The matrix will be filled by
answering six questions.
The financial impact:
-- The spend (purchase volume) expressed as an absolute number or percentage of a larger
category spend;
-- Percentage of the cost price of a finished product or the financial risk in the case of
services;
-- Price volatility: large price fluctuations of purchased products or services can have a
negative (or positive) impact on the profits of a company.
The commercial relationship complexity:
-- The nature of products or services: are the products patented, are they developed in

collaboration with the customer, or are they off-the-shelf products?
-- Availability risk: for example, is the production capacity limited, or is the flexibility in
supplying products or services small or large?
-- Number of suppliers: How many suppliers can supply those products against correct
specifications and correct amounts or volumes?

22
Download free eBooks at bookboon.com


The Naked Buyer

Category Segmentation
(Kraljic

Mapping

Fig. 5: Translation of the answers into the Matrix

Turning a challenge into a learning curve.
Just another day at the office for a high performer.
Accenture Boot Camp – your toughest test yet
Choose Accenture for a career where the variety of opportunities and challenges allows you to make a
difference every day. A place where you can develop your potential and grow professionally, working
alongside talented colleagues. The only place where you can learn from our unrivalled experience, while
helping our global clients achieve high performance. If this is your idea of a typical working day, then
Accenture is the place to be.
It all starts at Boot Camp. It’s 48 hours
that will stimulate your mind and
enhance your career prospects. You’ll

spend time with other students, top
Accenture Consultants and special
guests. An inspirational two days

packed with intellectual challenges
and activities designed to let you
discover what it really means to be a
high performer in business. We can’t
tell you everything about Boot Camp,
but expect a fast-paced, exhilarating

and intense learning experience.
It could be your toughest test yet,
which is exactly what will make it
your biggest opportunity.
Find out more and apply online.

Visit accenture.com/bootcamp

23
Download free eBooks at bookboon.com

Click on the ad to read more


The Naked Buyer

Category Segmentation
(Kraljic

Mapping

What do purchasing departments do with the positioning of products and services?
Differentiated Purchasing Strategies
The position of a category in the matrix, determines the way in which a buyer will deal with the
suppliers of that specific category. Remember that a purchasing department consists of various levels.
The positioning in the matrix determines the purchasing level on the purchasing mountain (operating
level, tactical level / strategic level). A company may also decide to reach a level of standardization for
the products or services, thus moving the category from a “strategic” quadrant to a “leverage quadrant”.
On the next page, this is graphically displayed.

24
Download free eBooks at bookboon.com