Category Management Toolkit: Business Requirements Analysis



What is Business Requirements Analysis?

Business Requirements Analysis is “the extensive evaluation of the requirements of the business now, and in the future, for a particular commodity and/or service or set of commodities and/or services.”

Establishing your business requirements is important, especially in the process of strategic planning and source planning, to develop a deep understanding of the needs and requirements of the business now and in the future. This detailed understanding of needs will then:

  • Enable the design of the most appropriate strategies
  • Allow meaningful & measurable objectives to be set as part of the strategy creation process
  • Provide the context for conditioning, negotiation, targeting & measurement processes
  • Enable the best segmentation and selection of suppliers
  • Enable the appropriate segmentation of the business units that you serve
  • Set the requirements for your future supplier management plan & category strategy
  • Review alignment of corporate business strategy and objectives.

Where does it fit in with Category Management?

  • Establishing the initial project scope and objectives
  • Internal data gathering
  • Developing the (category / supplier) strategy
  • Manage and maintain ongoing performance

What is included in this guide?

  • The importance of Business Requirements Analysis
  • Quality, Cost, Logistics, Development, Management Information (QCLDM)
  • Identifying Business Requirements
  • Capacity Forecasting

(Business Requirements Analysis Summary)

The importance of Business Requirements

While meeting current and future business requirements is the absolute minimum target for any procurement strategy, the aim is to exceed business requirements with a creative breakthrough.

The identification of business requirements is a common part of the procurement process already, and is generally in the form of a Functional Specification, a Technical Specification, a Statement of Requirement or just a set of drawings.

Buying things under a Category Management process can still involve all of these steps, and we want to add another technique – Quality, Cost, Logistics, Development and Management Information (QCLDM) - to these.

Capturing Business Requirements is a highly structured process, and key elements are:

  • Objective, structured approach to gathering information
  • High quality analysis - turn data into information
  • Honesty about current position and where you can get to
  • Robust decision support systems
  • Cross-functional team-work
  • Good communications skills
  • Confidentiality within the team will be required when sensitive information is gathered and worked on.

(Business Requirements Analysis)