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Category Management in Purchasing, 2nd Edition by Jonathan O'Brien

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02

The principles of category management

In this chapter we shall examine the essential foundations and overriding principles that are required in order to achieve success with category management.

The three foundations of category management

Category management is built on three solid foundations (Figure 2.1), each a prerequisite to unlock the power of the process in delivering dramatic value improvement to the organization. These foundations are: a strategic approach to sourcing, strong market management, and robust change management.

FIGURE 2.1   Foundations of category management

Foundation 1: sourcing strategically

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