Overview - Category Management Training

Category Management Training

Programme Overview

1

Category management course: content, tools and activities

Why consider this training? This course is designed to review the component disciplines of creating a category plan and help category managers and category specialists develop the thought processes and skills that are needed to take their category strategy to the next level and drive value creating sourcing and supplier management initiatives. If you are a category manager or sub-category manager responsible for a significant level of spend and looking to refresh a category, this is the course for you.

Summary: “Tell me what I need to know in 60 seconds” Key facts: - size of spend/ coverage - # of suppliers Current objectives and initiatives. Value development themes checklist: -Rationalisation -Growth -Standardisation -Cost Management /VAVE -Innovation

Category Background: “What is the focus, size and shape?” Business alignment and impact summary – what does this category deliver (mission statement). Category scope/ breakdown – what’s in this category and spend in each sub category & trend. Sourcing project history. Supplier portfolio listing with spend/ value/ risk/complexity tiering. Category risk analysis

Category Oversight: “How do we manage the value in this category?”

Market Forces: “What’s happening out there and how does it affect us?” Market difficulty assessment: -Overall - Suppliers’ supply market - Supplier market - Demand market Four box so-what/ SWOT analysis

Opportunity Pipeline : “What could we do to develop value?”

Development Plan: “What are we working on and what results will be delivered?” Category spend outlook (FY +3) - summary -by supplier List of active initiatives that: a) Develop the category b) Deliver strategic sourcing initiatives c) Strengthen strategic/critical supplier relationships

Sourcing project schedule

Category options (written as requirements).

Supplier portfolio governance: - Contract management/ frameworks - Performance and continuous improvement. - Risk Management Key stakeholders: Activity based category RASCI and communications plan

-Risk/resilience -Sustainability -Customer experience

Category summary template Mission statement template Category breakdown template Cumulative spend graph Supplier

Category governance schedule RASCI

PESTLE Five forces Competitor analysis (optional) So What matrix

Weighted decision matrix Selection Criteria Value/Benefit statement

Action plan template

positioning/preferencing Category risk heat map Category risk register Category SWOT

Category research Spend analysis Requirements gathering and validation Supplier portfolio analysis Risk identification and analysis

Translate business requirements into sourcing activities. Oversight of sourcing initiatives.

Conducting primary research. Reusing secondary research. Market analysis

Opportunity identification (challenging the statis quo) Opportunity evaluation (criterion referenced) and prioritisation.

Programme management and oversight.

Supplier segmentation, treatment strategy and governance.

2

Course structure

Category Background: “What is the focus, size and shape?”

Category Oversight: “How do we manage the value in this category?”

Market Forces: “What’s happening out there and how does it affect us?”

Opportunity Pipeline: “What could we do to develop value?”

Development Plan: “What are we working on and what results will be delivered?”

Summary: “Tell me what I need to know in 60 seconds”

Session 3: 90-minute tutorial. + 1 week to undertake opportunity identification and analysis, and update

Session 4: 90-minute tutorial. + 2 weeks to create development plan and complete category summary.

Session 2: 90-minute tutorial. + 1 week to undertake market research and

Session 1: 90-minute tutorial. +

1 week to undertake refresh of category strategy (Background and Oversight sections).

refresh market forces section.

3

Support materials

To support training delivery and ensure learning is embedded as consistent, standardised and repeatable approach to category management, we provide two key support documents:

The Category Strategy Playbook gives programme participants a concise yet valuable ‘ how to’ style reference source covering the tools and activities described in Part 1 of this document.

The Category Plan accompanies the Playbook to provide a ready to use suite of templates that, when populated, builds into a fully documented strategy and action plan per the content described in Part 1 of this document.

4

Category Strategy Playbook

Category Plan

Category:

Category Owner:

Executive Sponsor:

Last Updated:

Next Update Due:

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