Category Management – 3-Day

Our most popular course, 3-day Category Management covers all aspects of our 5i® Category Management process. The course fully equips your purchasing practitioners to deliver significant business benefits through reducing price and cost, reducing supply base risk, and unlocking innovation and greater value for your most important categories of spend.

This course is essential for any company embarking on, or attempting to re-establish, a Category Management program. It is aimed at experienced or developing purchasing staff and, potentially, key stakeholders.

The course content and delivery can be customized around your company’s specific purchasing process. Our experienced trainers bring the learning to life using a combination of inspirational tuition, facilitated debate, group work and case studies. It offers the option of sessions for delegates to work on their own categories.

Learning objectives

By the end of this session delegates will be able to:

  • Understand Category Management how it adds value
  • Apply Category Management to key areas of spend
  • Explain the key steps of the process and determine which tools to apply for each category
  • Establish a cross-functional team and engage the business
  • Define business requirements
  • Analyze a category and determine a category strategy
  • Create a source plan
  • Develop a detailed implementation plan
  • Manage implementation and apply change management principles
  • Describe how to link contractual terms with the category strategy
  • Begin to implement suitable arrangements for supplier management
  • Determine when to restart the Category Management process

Who should attend

  • Procurement professionals
  • Junior or developing buyers
  • Purchasing managers
  • Purchasing leadership teams
  • Stakeholders who are to support or be part of category teams

Course content

  • Introduction to Category Management
  • Achieving breakthrough results and managing change
  • The STP (Situation, Target, Proposal) tool
  • Cross-functional teams and team formation/project kick-off
  • Stakeholder mapping and communication planning
  • Business Requirements definition and prioritization
  • Determining how to secure value (Value Levers)
  • Early insights into category using Day One analysis
  • Quick wins and opportunity analysis
  • Supplier conditioning
  • Planning the category project
  • Data gathering (internal, supplier and market)
  • Getting behind suppliers’ price using price model and purchase price cost analysis
  • Supply chain value mapping
  • External environment analysis using PESTLE and Porter’s Five Forces
  • Strategy development using Portfolio Analysis/Kraljic Analysis and Supplier Preferencing
  • Summarizing all the analysis and findings using SWOT
  • Strategic sourcing options generation and evaluation
  • Source plan/sourcing strategy development and approval
  • Risk and contingency planning
  • Detailed implementation planning and project management
  • Planning the negotiation (high level introduction)
  • Managing the supplier and the new arrangements (high level introduction)
  • Introduction to continuous improvement and the ongoing attraction of breakthrough and innovation