Category Management
Category Management
Category Management
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Analysis of required learning effort
Minimum ratio
*Effort while in contact with staff Hours
teacher / learner
Classroom and demonstrations 1:60 60
Monitoring and small-group teaching 1:30 12
Other
Independent Learning
Directed e-learning (hours)
Independent Learning (hours) 178
Other hours (group project)
Work-based learning hours of learning effort
Total Effort (hours) 250
(i) develop a critical understanding to the approaches that can be adopted in order to
develop strategic category management for a mix of procurement expenditures
(ii) develop a strategic plan for category management processes in order to improve key
areas of spend, secure added value and mobilise a cross-functional team
(iii) strategically analysis data around the supply base, the supply market, price and cost,
internal needs and the external environment, to determine strategic direction
(iv) identify the optimum high-impact sourcing strategy for the category, and secure
agreement from the wider organisation
(v) strategically plan the implementation of a new category strategy, manage change and
roll out, including negotiation, selecting new suppliers and contracting as appropriate
(vi) demonstrate an appreciation of the importance of supplier relationship management
and ongoing improvement for the category management process.
Rationale for inclusion of the module in the programme and its contribution to
the overall MIPLOs
The module provides learners with knowledge, skills and methodologies of a key strategy employed
in today’s procurement and supply chain environment to ensure that the supply chain maximises its
contribution to an organisation’s success.
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Information provided to learners about the module
The Programme Handbook contains the module descriptor and assessment details. Extensive use of
the VLE, Moodle, provides detailed notes and additional resources. In class, learners are provided with
a PowerPoint pack and extensive reading list, incorporating professional and academic sources.
Definitions
• Procurement, purchasing, sourcing
• Strategic procurement and strategic sourcing
• Category management – from transactional purchasing to strategic sourcing
Categorising Expenditure
• Cost analysis
• Pareto analysis
• Kraljic analysis
• Bartolini’s scorecard
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Supply Market Factors
• Industry dynamics
• Competitiveness and pricing behaviour
• Financial data on potential suppliers
• RFI’s to assess market factors
• Internal and external influences
• Corporate social responsibility and sustainability
• Supply chain and value chain analysis
Pre-Planning Preparation
• Make or buy decisions
• Switching costs
• Sourcing options
• Risk planning and mitigation
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Performance Measurement
• Capturing data
• Creating performance measures
• Dashboards
• Reviewing improvements
E-learning
E-learning supports are provided via the college’s online learning environment, Moodle, including
extensive library resources.
Primary Reading
Cordell, A. and Thompson, I. (2018) The Category Management Handbook. 1 edition. New York:
Routledge
Jonathan O’Brien (2018) Category Management in Purchasing: A Strategic Approach to Maximize
Business Profitability. Kogan Page.
Secondary Reading
Handfield, R. (2015) Sourcing Portfolio Analysis. Power Positioning Tools for Category Management &
Strategic Sourcing. Stratford-upon-Avon: Earlsgate Press, (ISBN: 9781873439548)
Keith, B., Vitasek, K., Manrodt, K. & Kling, J. (2015) Strategic Sourcing in the New Economy. New
York: Palgrave Macmillan, (ISBN: 9781137552181)
O’Brien, J. (2019) Category Management: A Strategic Approach to Maximise Business Profitability,
Kogan Page.
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Specifications for module staffing requirements
Lecturing staff should hold a masters level (Level 9) qualification, preferably with a third level teaching
qualification (e.g. Certificate in Training and Education).
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