CPSP – Category Management

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CPSP – Category Management

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

Click here to Download CPSP-K CATEGORY MANAGEMENT for Certified purchasing and supplies procurement of Kenya notes

PL2.06.2 General Objectives

At the end of the module, the trainee should be able to:

  1. understand approaches that can be adopted to develop strategic sourcing and category management for a mix of procurement expenditure
  2. be able to create Allan for a strategic sourcing or category management process
  3. be able to develop an implementation plan for strategic sourcing or category management process
  4. 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

  1. Purchasing and sourcing
  2. Objectives of category management
  3. Strategic procurement and strategic sourcing and category management
  4. Evolution of transactional purchasing to strategic sourcing

Practice

  1. 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

  1. Cost analysis
  2. Pareto/ABC analysis
  3. Kraljic’s analysis

 Practice

  1. Discussing category expenditure

Click here to Download CPSP-K CATEGORY MANAGEMENT for Certified purchasing and supplies procurement of Kenya notes

PL2.6.03 Strategic acquisition and skills for category management

Competence

The trainee should have the ability to:

  1. Demonstrate understanding in all aspects of strategic acquisition
  2. Grasp the required skills to effectively handle category management

Content

Theory

  1. Strategic acquisition process with respect to pre-contract, contract and post-contract stages
  2. Strategic sourcing model and category management models
  3. Roles of a category manager
  4. Technical skills and behavioural skills for category management

Practice

  1. 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

  1. Insight into a category
  2. Demand patters for category groups
  3. Suppliers, terms and market trends

Practice

  1. 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

  1. Requirement for the preparation of sourcing plans
  2. Total cost models for category management
  3. Portfolio tools in category management
  4. Stakeholders need analysis
  5. Cross functional terms

Practice

  1. Discussing how to prepare for the sourcing process

Click here to Download CPSP-K CATEGORY MANAGEMENT for Certified purchasing and supplies procurement of Kenya notes

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

  1. Industry dynamics
  2. Financial data on potential suppliers
  3. Reason for assessing market factors
  4. Internal and external influences for category management
  5. Corporate social responsibility (CSR) and sustainability
  6. Supply chain and value chain analysis
  7. Analyze suppliers perception

Practice

  1. 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

  1. Make or buy decisions
  2. Switching costs
  3. Sourcing options
  4. Planned change
  5. Plan for risk and come up with mitigation factors
  6. Involvement of stake holders in.
  7. Sourcing decisions
  8. Creation of evaluation criteria
  • Finalizing specifications and contractual agreements
  1. Confidentiality agreements

Practice

  1. 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

  1. Negotiation in suppliers’ selection
  2. Invitation and requests
  3. Reverse Auctions
  4. Joint proposition improvement

Practice.

  1. 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

  1. Stakeholders buy-in
  2. Stakeholder communication; presenting strategic sourcing plans to stakeholders

Practice

  1. 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

  1. Performance improvement
  2. Planning for the effective start-up of category plans
  3. Mobilizing start-up and transitional arrangements

 Practice

  1. Discussing how to improve performance through mobilization, start-up and transition

Click here to Download CPSP-K CATEGORY MANAGEMENT for Certified purchasing and supplies procurement of Kenya notes

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

  1. Responsibilities for contract management
  2. Operational performance
  3. Obtaining feedback from stakeholders
  4. Benchmarking performance

 Practice.

  1. 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

  1. Capturing performance data
  2. Creating performance measures
  3. Dashboards
  4. Improvement reviews
  5. Supply chain risks and their mitigation
  6. Volatility in supply and how to prepare for it
  7. Exit arrangements

 Practice

  1. 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

  1. Emerging issues and trends in category management
  2. Challenges and opportunities posed by the emerging issues and trends in category management
  3. Coping with and adapting to the emerging issues and trends in category management

 Practice

  1. Discussion of the challenges and opportunities posed by the emerging issues and trends in category management

Click here to Download CPSP-K CATEGORY MANAGEMENT for Certified purchasing and supplies procurement of Kenya notes

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