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Category Management in Purchasing A strategic approach to maximize business profitability 4th edition by Jonathan O Brien ISBN 0749482626 9780749482626

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ISBN 10: 0749482626
ISBN 13: 9780749482626
Author: Jonathan O Brien

Category Management in Purchasing is a comprehensive guide to strategic category management which provides a step-by-step guide to its implementation and use, and enables readers to deliver value and cost savings when sourcing and purchasing. Now in its fourth edition, this text has cemented its place as the essential reference for category management practitioners. In this new edition, Jonathan O’Brien shows how a strategic approach needs to integrate with other approaches, such as supplier relationship management and how the procurement function negotiates. Additionally, this new edition includes some new insights, based upon the experience of senior practitioners in industry, on how to make category management a success in the organization. It also includes some general updates and contextualizes the future procurement function and an ever increasing digitally enabled, de-globalized, post Brexit world. There is also additional material on the effect of international developments on procurement, updated tools and templates, and examples of how these have been successfully used in industry. Category Management in Purchasing, 4th edition connects theory and practice and provides readers with the tools to analyze complex sourcing situations quickly and clearly, and so develop innovative and creative proposals for sourcing.

Category Management in Purchasing A strategic approach to maximize business profitability 4th Table of contents:

  1. 01 Introducing category management Introducing category management
  2. Category management explained
  3. Category examples
  4. How it all started
  5. The relevance of category management today
  6. A changing landscape and the certainty of change
  7. The digital enabler
  8. You don’t have to wear sandals to talk about social responsibility
  9. Our love affair with brands, bargains and something just for me!
  10. It’s all about value
  11. Securing the value the organization needs
  12. Value and the virtual brick wall
  13. The value of maximizing profit
  14. Determining categories
  15. 1 Identifying spend
  16. 2 Directing resources to addressable spend
  17. 3 Directing resources where there is opportunity
  18. 4 Identifying market boundaries so categories become market facing
  19. 5 Most appropriate level to work at
  20. Defining category segmentation
  21. The benefits possible
  22. The financial benefits possible
  23. The non-financial benefits possible
  24. Surely someone has already thought of this?
  25. 02 The principles of category management
  26. The three foundations of category management
  27. Foundation 1: Sourcing strategically
  28. Foundation 2: Managing the market
  29. Foundation 3: Driving change
  30. The four pillars of category management
  31. Pillar 1: Breakthrough thinking
  32. Pillar 2: Customer focus
  33. Pillar 3: Cross-functional teams that work
  34. Pillar 4: Facts and data
  35. Category management in the public sector
  36. EU procurement legislation
  37. Adapting category management for the public sector
  38. Purchasing category management in retail
  39. Digital category management
  40. 03 Laying the groundwork for success
  41. Before you start
  42. Creating the right conditions for category management
  43. Category segmentation and opportunity analysis
  44. The 5i category management process
  45. A circular process
  46. Moving through the five stages
  47. Reviewing progress
  48. Realizing the benefits
  49. The full process
  50. Applying the process
  51. Process duration
  52. Knowing what to leave out
  53. Working through the process
  54. 04 Stage 1: Initiation
  55. The initiation toolkit
  56. Kicking off the category management process
  57. Scoping the category project
  58. Opportunity analysis revisited
  59. Securing the executive sponsor
  60. Recruiting team members
  61. Planning the project
  62. The STP tool
  63. Team formation and the team charter
  64. Stakeholder mapping
  65. Communications planning
  66. Project time planning
  67. Securing quick wins
  68. First insights and direction setting
  69. Gaining first insights into the category using day one analysis
  70. Value levers
  71. Defining the business requirements
  72. 05 Stage 2: Insight
  73. The insight toolkit
  74. Developing category insights
  75. Introduction to data gathering
  76. Supplier conditioning
  77. Internal data gathering
  78. Supplier data gathering
  79. Market data gathering
  80. Price and cost analysis
  81. Understanding the supplier’s pricing approach
  82. Developing a cost vs price breakdown
  83. Understanding the external environment
  84. Supply and value chain network (SVCN) analysis
  85. Technology mapping
  86. PESTLE analysis
  87. Understanding market competitiveness
  88. Determining strategic direction
  89. Determining potential sources of leverage
  90. Understanding how the supplier views the relationship/account
  91. Portfolio analysis with supplier preferencing
  92. 06 Stage 3: Innovation
  93. The innovation toolkit
  94. The steps towards innovation
  95. Creating the sourcing strategy
  96. Summarizing the insights
  97. Strategic option generation
  98. Strategic option evaluation and selection
  99. Building the chosen option
  100. Finalizing the sourcing strategy
  101. Risk and contingency planning
  102. High-level implementation planning
  103. Cost–benefit analysis
  104. Creating the strategic source plan
  105. Source plan sign-off
  106. 07 Stage 4: Implementation
  107. The implementation toolkit
  108. Turning the future sourcing strategy into reality
  109. Implementation planning
  110. Detailed implementation planning
  111. Project management
  112. Managing change
  113. Implementation execution
  114. Running an RFP, RFQ or tender process
  115. Using e-auctions to support a category strategy
  116. Supplier selection
  117. Negotiation with suppliers
  118. 10 Top Tips for negotiation within category management
  119. Contracting
  120. Contract planning
  121. Contract exit planning
  122. Contract execution and management
  123. 08 Stage 5: Improvement
  124. The improvement toolkit
  125. The concept of continuous improvement
  126. Capturing learnings
  127. Lessons learned review
  128. Supplier Relationship Management
  129. Introducing the Orchestra of SRM
  130. Determining what supplier intervention is required
  131. Implementing the appropriate SRM approach(es)
  132. Supplier management
  133. Supplier performance measurement
  134. Driving supplier improvements and developments
  135. Supply chain management
  136. Strategic collaborative relationships
  137. Driving continuous improvement
  138. Attracting innovation, value and breakthrough ongoing
  139. Ongoing alignment with business requirements
  140. Ongoing market analysis
  141. Starting again
  142. Determining when to start the process again
  143. 09 Making category management happen
  144. Creating the right conditions
  145. Securing executive support
  146. Introducing 5P governance
  147. 5P governance: People
  148. Creating the right structure
  149. A ‘virtual structure’ to foster cross-functional working
  150. The steering group
  151. The category manager role
  152. 5P governance: Proficiency
  153. Ensuring the right capability
  154. Establishing common language and ways of working
  155. 5P governance: Promote
  156. Driving business engagement
  157. Managing internal communications
  158. The stakeholder brochure or videos
  159. Getting the wider organization on page
  160. External communications
  161. 5P governance: Payoff
  162. Developing a benefits tracking approach
  163. Accuracy in benefits tracking
  164. Project reporting
  165. 5P governance: Programme
  166. Defining the programme plan
  167. Agenda for steering group reviews
  168. Setting up 5P governance
  169. 10 Guaranteeing success now and in the future
  170. Learning from those who have implemented category management
  171. Are organizations really seeing the benefits?
  172. Quality of deployment
  173. The importance of change management
  174. CPOs regard competency as the key ingredient for success
  175. Category management ‘black belts’
  176. Why CPOs regard business engagement as critically importance
  177. The importance of fact and data-based decision making
  178. How companies set up governance
  179. What the future holds
  180. The future challenges we can predict
  181. Hashtag the future of purchasing
  182. A new strategic purchasing (now with added supply chain!)
  183. The future automation of routine spend
  184. The digital and data revolution
  185. The role of category management for the future
  186. The future skill set for purchasing practitioners
  187. Appendix
  188. Glossary
  189. References and further reading
  190. Index

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