Category Management Module handbook notes – CPSP Part 2 notes

CATEGORY MANAGEMENT

CHAPTER 1: OVERVIEW OF CATEGORY MANAGEMENT

• Purchasing and sourcing
  • Difference between procurement and purchasing
• Objectives of purchasing
  • General managerial level
  • Functional or operational level
  • Strategic buying plans
• Purchasing cycle
• Sourcing
  • Sourcing strategies
  • Sourcing approaches
  • Levels of sourcing
  • Contrast between tactical purchasing and strategic sourcing
  • When to apply tactical sourcing or strategic sourcing
  • Benefits of effective sourcing
  • Comparison of sourcing and procurement
• Objectives of category management
  • Objectives of category management
• Strategic procurement and strategic sourcing and category management
  • Strategic procurement
  • Strategic sourcing
  • Reactive sourcing
  • Category management
• Evolution of transactional purchasing to strategic sourcing
  • Characteristics of tactical purchasing
• History of category management
• Self test questions
• Reference and further reading

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CHAPTER 2: CATEGORIZATION OF EXPENDITURES

• Cost analysis
  • Category expenditure analysis tools
  • Factors for categorization
• Self test questions
• Reference and further reading

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CHAPTER 3: STRATEGIC ACQUISITION AND SKILLS FOR CATEGORY MANAGEMENT

• Strategic acquisition process with respect to pre-contract, and post contract stages
  • Pre-contract stages
  • Post -contract stages
• Cips acquistion model
  • Pre-contract acquisition stages
• Sourcing models and categorical management models
  • Strategic sourcing models
  • At kearney 7 step model
  • Six-step sourcing model
• Category management models
  • O’brien category management model
  • Cips category management model
• Roles of a category manager
  • Performance management responsibilities of a category manager
• Technical and behavioural skills for strategic categorical management
  • Technical skills
  • Behavioural skills
• Self test questions
• Reference and further reading

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CHAPTER 4: UNDERSTANDING CATEGORICAL DATA

• Insight of category
• Demand patterns for category groups
  • Day one analysis matrix
  • Demand forecasting for category groups
  • Reconciling business requirements and category
• Current contracts, suppliers, terms and markert trends
  • Current contracts
  • Understanding terms and conditions
  • Suppliers
• Market trends
  • Type and source of information
• Self test questions
• Reference and further reading

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CHAPTER 5: PREPARING FOR THE CATEGORY MANAGEMENT PROCESS

• Requirements for preparation of sourcing plans
  • Factors to consider
  • Key planning considerations for the effective implementation of a strategic sourcing or category management process
  • Producing category hierarchies
• Total cost models for categorical management
  • Process of developing ppca according to o’brien
  • The benefits of using opportunity analysis
• Portifolio tools in cataegorical management
• Stakeholders needs analysis
  • Classifications of stakeholders
  • Steps in stakeholder analysis
  • Stakeholder mapping- power/interest matrix
  • Benefits of stakeholder analysis
• Cross functional team
• Review questions
• Self test questions
• Reference and further reading

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CHAPTER 6: SUPPLY MARKET FACTORS

• Industry dynamics
  • Types of industries
  • Industry lifecycles
  • Competitive cycles
  • Market segment
• Financial data on potential supplier
  • Total cost of ownership (tco)
• Reasons for assessing market factors
• Internal and external influences of categorical management
  • Steeple analysis
  • Porter’s five forces
  • Swot analysis
  • Request for information (rfi)
  • BCG matrix
• Corporate social responsibility (csr) and sustainability
  • Corporate social responsibility
  • Sustainability
• Supply chain and value chain analysis
• Analyze suppliers perception
• Self test questions
• Review questions
• Reference and further reading

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CHAPTER 7: PLANNING AND PREPARATION OF CATEGORICAL MANAGEMENT

• Make or buy decision
• Swithching costs or switching barrier
• Sourcing options
• Planned change
• Plan risk and come up with mitigation factors
• Involvement of stakeholders in category management;
• Self test questions
• Reference and further reading

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CHAPTER 8: ROUTES TO THE SUPPLY MARKET

• Competition and negotiation in sourcing suppliers
• Invitation and request
• Reverse auction
• Joint proposition improvement
• Self test questions
• Reference and further reading

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CHAPTER 9: WORKING WITH STAKEHOLDERS

• Stakeholders buy- in
• Stakeholders communications
• Presenting strategic sourcing plans to stakeholders
• Self test questions
• Reference and further reading

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CHAPTER 10: MOBILIZATION, START UP AND TRANSITION

• Performance improvement
  • Performance monitoring
  • Compliance monitoring
  • Supplier management
  • Continuous improvement
• Planning for effective start up of category plans
  • Brown paper’ planning
  • Implementation planning
• Mobilizing start-up and transition arrangements
  • Mobilizing start-up
  • Transition arrangements
• Self test questions
• Reference and further reading

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CHAPTER 11: MANAGING CONTRACTS AND SUPPLIERS

• Responsibilities of contract management
• Operation performance
• Obtaining feedback from stakeholders
• Benchmarking performance
• Self test questions
• Reference and further reading