The Category Management Handbook

Activity 24Opportunity analysis and quick wins

Figure 4.9 Opportunity analysis

Source: adapted from George (2003)

Overview

Opportunity analysis is a common feature of strategic planning. A number of 2 x 2 matrices have been developed by procurement consultants over the years to fit into the category management process. Most are thought to have been derived from Six Sigma’s ‘PICK chart’, a visual tool for organising ideas and prioritising them.

At the heart of this decision tool is the equation between potential yield and effort. Therefore, in order to manage resources effectively, it is useful to apply the technique at the outset of the category ...