Category Management

Procurement is responsible for sourcing goods and services, selecting suppliers and negotiating agreements. Once the agreements are in place, the transactional purchasing is typically done through the Procurement Supply Chain teams.

Category management step 1: Stakeholder management

Stakeholder management includes: Continually monitor and understand internal stakeholder activities and requirements. Keep stakeholders updated on projects. Conduct relevant status meetings. Collect data and feedback from stakeholders.

Category management step 2: Category strategy

Category strategy includes: Monitor market and supplier development. Cultivate new suppliers. Understand supply market. Develop proactive market strategies.

Category management step 3: Sourcing

Sourcing includes: Execute category sourcing process – 6 sourcing steps. Prepare sourcing strategy. Apply knowledge from other A.P. Moller - Maersk entities into sourcing strategy.

Category management step 4: Supplier Relationship Management

Supplier Relationship Management includes: Supplier segmentation and evaluation. Conduct top level supplier summits. Govern supplier relationships to foster mutual opportunities. Conduct operational performance review meetings with suppliers.

Category management step 5: Proactive Category Management

Proactive Category Management includes: Monitor the A.P. Moller - Maersk business unit needs. Conduct demand analysis and forecasting. Ensure continuous cost improvement. Perform contract management. Implement agreements: Awareness and compliance to agreements. Leverage A.P. Moller - Maersk strategies.

Category management step 6: Renegotiate agreements

Renegotiation of agreements include: Continually ensure that category is covered by valid frame agreements. Ensure that changes in supplier/group situations are reflected in agreements.

The categories we manage are divided into two main groups, direct categories with impact on our core business and indirect categories related to our administrative activities. The two groups are described in detail below

Direct categories

Terminal and container-handling equipment, e.g. for lifting containers. Steel, engines for new building of ships. Dry-docking for service, paint or repair of ships. Paint for ships and containers. Navigation and communication equipment, e.g. radars, black boxes and satellite communication. Safety and security, equipment for fire fighting, life rescue etc. Makers Management: the preferred suppliers for new building of ships.

Indirect categories

Travel and related activities covering airlines, hotels, travel agencies, credit cards, car hire and leasing IT and communication covering PC, servers, storage, software, telephony and other communication equipment Office supplies covering everything from paper clips to office furniture Company cars, leasing and maintenance