Category Intelligence Solution

Successful execution of Category Management is a critical strategic objective of supply chain professionals.  Successful execution can enable energy companies to:

 Leverage demand across enterprise to achieve savings from scale

 Integrate market intelligence to reduce cost and mitigate risks

 Standardize specs to ensure maximum performance

 Reduce lead times

 Put more spend under management

Unfortunately, as one supply chain executive said, “Category Management processes sound great in PowerPoint decks but are really the impossible dream.” The burden on teams of gathering incomplete data and building deliverables typically leads to muted impact. Moreover, the lack of external energy market intelligence prevents teams from developing effective strategies.  

By integrating Cost Intelligence® and Market Intelligence®, Category Intelligence provides the only solution that enables supply chain professionals to make the full impact of category management possible. 

Category Intelligence Solution Benefits

 Manage 2x the spend and generate more savings: By automating Category Management, you can double your efficiency 

 Deliver 20% more impactful strategies: Leverage best-in-class market intelligence to develop more effective strategies

 Make category management processes sustainable: Avoid process decay after consulting firms leave

 Keep business unit leaders engaged: â€‹Create visibility and demonstrate impact

 Promote success: Demonstrates the sophistication, professionalism and impact to executives


How Category Intelligence Works

Our customers receive the combination of actionable intelligence, functionality and automation which is essential to developing and executing category strategies in a sustainable way.   Category Intelligence can be delivered with technology only or accelerated with services.

Real-Time Market Intelligence

Strategy Automation

Flexible Technology

  • Proprietary forecasts of 10,000+ commodities
  • Cost models of items you buy linked to forecasts create the only true method for making price and purchase timing decisions
  • Critical information, such as top suppliers by category, delivered from PowerAdvocate Energy Intelligence FactBase
  • Actionable information delivered in the language of energy companies
  • Critical analyses updated automatically to eliminate data gathering and deliverable development
  • Commodity forecasts delivered via the web into existing analyses and cost models
  • Market insight delivered from Energy Intelligence teams on a quarterly basis
  • Easily create any process and share across organization to ensure standard approaches and best practices implementation
  • Customize views based upon needs (executive views vs. category manager views)



Tailored to Your Needs

We tailor Category Intelligence to the sophistication of your existing Category Management organization:

  • Define the optimal organizational structure
  • Develop a sustainable process
  • Develop the contents of best-in-class category strategy
  • Facilitate technology adoption
  • Conduct Opportunity Assessment
  • Execute strategies and achieve impact
  • Provide training and education to enable ongoing impact
  • Provide best practices consultation on existing process
  • Design and build out relevant category grids
  • Identify relevant cost models and enable any required custom model development
  • Facilitate technology adoption
  • Provide training and education to enable ongoing impact


The PowerAdvocate Advantage

 Data is delivered from the world’s only and largest PowerAdvocate Energy FactBase, which contains over $1 trillion in actual energy company spend

 PowerAdvocate's energy intelligence teams have the skills, experience and information to translate what market events mean into the highly engineered things you buy

 â€‹PowerAdvocate has over 12 years of experience designing, implementing and automating category management processes for the largest energy companies in the world

 PowerAdvocate technology is loaded with proprietary cost models at the level of the item you buy – no more useless, static reports

 Technology is web-based, seamlessly integrated into your processes and built specific to the energy supply chain professional



Reorganizing Category Management Approach Transforms Leading Supply Chain


One of the largest U.S. energy companies, leading the way in innovative supply chain approaches, turned to PowerAdvocate to help them improve enterprise performance and mitigate risk. PowerAdvocate worked closely with the client in creating and maintaining a sustainable, cost effective strategic sourcing process. Over the past two years our client has delivered savings and managed their operating performance through leveraging our tools, data and expertise.

Category Management Approach

Over five months, PowerAdvocate worked with and trained 100+ members of the client’s supply chain, performing category assessments to identify savings opportunities.

  • Identified $5.5 – $17.4M in potential savings opportunities across 20 categories through benchmarking analysis

  • Relatively small percentage savings opportunity is indicative of supply chain’s performance, costs are at or near best in market (minimum benchmark range) for most items in categories benchmarked

  • Reported best-in-class metrics and performance to executive leadership

Product Uses

The client's supply chain quickly adopted PowerAdvocate's Energy Intelligence Platform® into its strategic sourcing approach and category business plan development, ultimately saving time and resources.

  • Sourcing Intelligence®Within a month of purchase had over 50 buyers trained and running events on Sourcing Intelligence. Today, our client runs approximately 100 events a month with over 1,400 registered users.

  • Market Intelligence: Accessed over 5,000 times a month with 50 users, searching for suppliers, events, and category data.

  • Spend Intelligence®: Analyzed over $30B in spend activity, across 70,000 suppliers and 4.1M transactions

  • Cost Intelligence®: Delivering an average of 4% savings through should-cost calculation, accessing cost models ~400 times a month


  • Fully embedded PowerAdvocate Energy Intelligence Platform into strategic sourcing process across the utility
  • Provided visibility to over $30B in spend activities across 70,000 suppliers
  • Currently running over 100 events a month with 1,400 registered users
  • Benchmarked top 20 categories to demonstrate supply chain performance
  • Supporting supply chain merger integration to create largest U.S. energy company, selected as technology of choice