PL2.06 CATEGORY MANAGEMENT
PL2.06.01 Introduction
This module is intended to equip the trainee with knowledge, skills and attitudes that will enable them to handle category management efficiently and effectively
PL2.06.2 General Objectives
At the end of the module, the trainee should be able to:
- understand approaches that can be adopted to develop strategic sourcing and category management for a mix of procurement expenditure
- be able to create Allan for a strategic sourcing or category management process
- be able to develop an implementation plan for strategic sourcing or category management process
- understand the main aspects of performance improvement for strategic sourcing or category management process
PL2.6.01 Overview of category management
Competence
The trainee should have the ability to define and explain the key concepts in category management
Content
Theory
- Purchasing and sourcing
- Objectives of category management
- Strategic procurement and strategic sourcing and category management
- Evolution of transactional purchasing to strategic sourcing
Practice
- Discussing category management concepts
PL2.6.02 Categorization in procurement
Competence
The trainee should have the ability to demonstrate in-depth knowledge on category expenditure
Content
Theory
- Cost analysis
- Pareto/ABC analysis
- Kraljic’s analysis
Practice
- Discussing category expenditure
PL2.6.03 Strategic acquisition and skills for category management
Competence
The trainee should have the ability to:
- Demonstrate understanding in all aspects of strategic acquisition
- Grasp the required skills to effectively handle category management
Content
Theory
- Strategic acquisition process with respect to pre-contract, contract and post-contract stages
- Strategic sourcing model and category management models
- Roles of a category manager
- Technical skills and behavioural skills for category management
Practice
- Carry out discussion on enhancing skills for strategic acquisition
PL2.6.04 Understanding categorical data
Competence
The trainee should have the ability to demonstrate understanding with respect to insight into a category, demand patterns for category groups, supplier terms and market trends
Content
Theory
- Insight into a category
- Demand patters for category groups
- Suppliers, terms and market trends
Practice
- Discussing skills enhancing the understanding of category data
PL2.6.05 Preparing for the category management process
Competence
The trainee should have the ability to demonstrate a clear understanding of the entire process in category management
Content
Theory
- Requirement for the preparation of sourcing plans
- Total cost models for category management
- Portfolio tools in category management
- Stakeholders need analysis
- Cross functional terms
Practice
- Discussing how to prepare for the sourcing process
PL2.6.06 Supply market factors
Competence
The trainee should have the ability to comprehend market factors as well as the other influences on category management
Content
Theory
- Industry dynamics
- Financial data on potential suppliers
- Reason for assessing market factors
- Internal and external influences for category management
- Corporate social responsibility (CSR) and sustainability
- Supply chain and value chain analysis
- Analyze suppliers perception
Practice
- Identifying and discussing market factors
PL2.6.07 Planning and preparing of category management
Competence
The trainee should have the ability to guide in make or buy decision
Content
Theory
- Make or buy decisions
- Switching costs
- Sourcing options
- Planned change
- Plan for risk and come up with mitigation factors
- Involvement of stake holders in.
- Sourcing decisions
- Creation of evaluation criteria
- Finalizing specifications and contractual agreements
- Confidentiality agreements
Practice
- Discussing planning preparation for make or buy decisions
PL2.6.08 Routes to the supply market
Competence
The trainee should have the ability to explain the various routes to supply market
Content
Theory
- Negotiation in suppliers’ selection
- Invitation and requests
- Reverse Auctions
- Joint proposition improvement
Practice.
- Discussing various routes to the market
PL2.6.09 Working with stakeholders
Competence
The trainee should have the ability to articulate the need for stakeholders involvement in category management
Content
Theory
- Stakeholders buy-in
- Stakeholder communication; presenting strategic sourcing plans to stakeholders
Practice
- Discussion on stakeholder involvement in category management
PL2.6.10 Mobilization, start-up and transition
Competence
The trainee should have the ability to internalize mobilization, start-up and transition in category management
Content
Theory
- Performance improvement
- Planning for the effective start-up of category plans
- Mobilizing start-up and transitional arrangements
Practice
- Discussing how to improve performance through mobilization, start-up and transition
PL2.6.11 Managing contracts and suppliers
Competence
The trainee should have the ability to demonstrate an understanding on how to manage contracts
Content
Theory
- Responsibilities for contract management
- Operational performance
- Obtaining feedback from stakeholders
- Benchmarking performance
Practice.
- Discussing contract management
PL2.6.12 Performance and risk measurement
Competence
The trainee should have the ability to:
- Demonstrate skills required in performance measurement
- Appreciate the risks involved in category management and mitigation factors required in the same
Content
Theory
- Capturing performance data
- Creating performance measures
- Dashboards
- Improvement reviews
- Supply chain risks and their mitigation
- Volatility in supply and how to prepare for it
- Exit arrangements
Practice
- Discussing performance and risk management
PL2.6.13 Emerging issues and trends in category management
Competence
The trainee should have the ability to cope with the emerging issues and trends in category management
Content
Theory
- Emerging issues and trends in category management
- Challenges and opportunities posed by the emerging issues and trends in category management
- Coping with and adapting to the emerging issues and trends in category management
Practice
- Discussion of the challenges and opportunities posed by the emerging issues and trends in category management
