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Category Management in Purchasing, 3rd Edition

Book Description

The definitive guide to strategic category management, Category Management in Purchasing provides a step by step guide to the tools, techniques and application of category management.

Table of Contents

  1. Cover
  2. Dedication
  3. Title Page
  4. Contents
  5. List of figures
  6. List of tables
  7. Foreword
  8. Preface
  9. Acknowledgements
  10. About the author
  11. Introduction
  12. 01    Introducing category management
    1. Category management explained
    2. Category examples
    3. How it all started
    4. The relevance of category management today
    5. Technology as an enabler
    6. The world is a smaller place
    7. You don’t have to wear sandals to talk about ‘sustainability’
    8. Our love affair with brands, bargains and something just for me!
    9. It’s all about value
    10. Securing the value the organization needs
    11. Value and the virtual brick wall
    12. The value of maximizing profit
    13. Determining categories
    14. 1 Identifying spend
    15. 2 Directing resources to addressable spend
    16. 3 Directing resources where there is opportunity
    17. 4 Identifying market boundaries so categories become market facing
    18. 5 Most appropriate level to work at
    19. Defining category segmentation
    20. The benefits possible
    21. Scale and nature of benefits possible
    22. Surely someone has already thought of this?
    23. Chapter 1 summary
  13. 02    The principles of category management
    1. The three foundations of category management
    2. Foundation 1: Sourcing strategically
    3. Foundation 2: Managing the market
    4. Foundation 3: Driving change
    5. The four pillars of category management
    6. Pillar 1: Breakthrough thinking
    7. Pillar 2: Customer focus
    8. Pillar 3: Cross-functional teams that work
    9. Pillar 4: Facts and data
    10. Category management in the public sector
    11. EU procurement legislation
    12. Adapting category management for the public sector
    13. Purchasing category management in retail
    14. Chapter 2 summary
  14. 03    Laying the groundwork for success
    1. Before you start
    2. Creating the right conditions for category management
    3. Category segmentation and opportunity analysis
    4. The 5i category management process
    5. A circular process
    6. Moving through the five stages
    7. Reviewing progress
    8. Realizing the benefits
    9. The full process
    10. Applying the process
    11. Process duration
    12. Knowing what to leave out
    13. Working through the process
    14. Chapter 3 summary
  15. 04    Stage 1: Initiation
    1. The initiation toolkit
    2. Kicking off the category management project
    3. Scoping the category project
    4. Opportunity analysis revisited
    5. Securing the executive sponsor
    6. Recruiting team members
    7. Planning the project
    8. The STP tool
    9. Team formation and the team charter
    10. Stakeholder mapping
    11. Communications planning
    12. Project time planning
    13. Securing quick wins
    14. First insights and direction setting
    15. Gaining first insights into the category using day one analysis
    16. Value levers
    17. Defining the business requirements
    18. Chapter 4 summary
  16. 05    Stage 2: Insight
    1. The insight toolkit
    2. Developing category insights
    3. Introduction to data gathering
    4. Supplier conditioning
    5. Internal data gathering
    6. Supplier data gathering
    7. Market data gathering
    8. Price and cost analysis
    9. Understanding the supplier’s pricing approach
    10. Developing a cost vs price breakdown
    11. Understanding the external environment
    12. Supply and value chain network (SVCN) analysis
    13. Technology mapping
    14. PESTLE analysis
    15. Understanding market competitiveness
    16. Developing strategic direction
    17. Determining potential sources of leverage
    18. Understanding how the supplier views the relationship/account
    19. Portfolio analysis with supplier preferencing
    20. Chapter 5 summary
  17. 06    Stage 3: Innovation
    1. The innovation toolkit
    2. The steps towards innovation
    3. Creating the sourcing strategy
    4. Summarizing the insights
    5. Strategic option generation
    6. Strategic option evaluation and selection
    7. Building the chosen option
    8. Finalizing the sourcing strategy
    9. Risk and contingency planning
    10. High-level implementation planning
    11. Cost–benefit analysis
    12. Creating the strategic source plan
    13. Source plan sign-off
    14. Chapter 6 summary
  18. 07    Stage 4: Implementation
    1. The implementation toolkit
    2. Turning the future sourcing strategy into reality
    3. Implementation planning
    4. Detailed implementation planning
    5. Project management
    6. Managing change
    7. Implementation execution
    8. Running an RFP, RFQ or tender process
    9. Using e-auctions to support a category strategy
    10. Supplier selection
    11. Negotiation with suppliers
    12. 10 Top tips for negotiation within category management
    13. Contracting
    14. Contract planning
    15. Contract exit planning
    16. Contract execution and management
    17. Chapter 7 summary
  19. 08    Stage 5: Improvement
    1. The improvement toolkit
    2. The concept of continuous improvement
    3. Capturing learnings
    4. Lessons learned review
    5. Supplier Relationship Management
    6. Introducing the Orchestra of SRM
    7. Determining what supplier intervention is required
    8. Implementing the appropriate SRM approach(es)
    9. Supplier management
    10. Supplier performance measurement
    11. Driving supplier improvements and developments
    12. Supply chain management
    13. Strategic collaborative relationships
    14. Driving continuous improvement
    15. Attracting innovation, value and breakthrough ongoing
    16. Ongoing alignment with business requirements
    17. Ongoing market analysis
    18. Starting again
    19. Determining when to start the process again
    20. Chapter 8 summary
  20. 09    Making category management happen
    1. Creating the right conditions
    2. Securing executive support
    3. Introducing 5P governance
    4. 5P governance: <span xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" class="italic">People</span>
    5. Creating the right structure
    6. A ‘virtual structure’ to foster cross-functional working
    7. The steering group
    8. The category manager role
    9. 5P governance: <span xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" class="italic">Proficiency</span>
    10. Ensuring the right capability
    11. Establishing common language and ways of working
    12. 5P governance: <span xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" class="italic">Promote</span>
    13. Driving business engagement
    14. Managing internal communications
    15. The stakeholder brochure
    16. Getting the wider organization on page
    17. External communications
    18. 5P governance: <span xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" class="italic">Payoff</span>
    19. Developing a benefits tracking approach
    20. Accuracy in benefits tracking
    21. Project reporting
    22. 5P governance: <span xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" class="italic">Programme</span>
    23. Defining the programme plan
    24. Agenda for steering group reviews
    25. Setting up 5P governance
    26. Chapter 9 summary
  21. 10    Guaranteeing success – now and for the future
    1. Two inspirational success stories
    2. How Cardiff Council used category management to drive procurement transformation
    3. Learning from GSK – one of the all-time great examples of a quality category management implementation
    4. Factors and considerations for successful category management
    5. The key success factors
    6. Developing category management ‘black belts’
    7. Avoiding ‘tick box’ category management
    8. SMAC and category management
    9. Scalability for small businesses
    10. What the future holds
    11. The challenges facing organizations over the next 20 years
    12. Future implications for purchasing
    13. The role of category management for the future
    14. Chapter 10 summary
  22. Appendix: Tools and templates
  23. Glossary
  24. References and further reading
  25. Index
  26. Copyright