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