Title Category Management in Purchasing, 4/e
Subtitle A Strategic Approach to Maximize Business Profitability
Author Jonathan O’Brien
ISBN 9780749482619
List price GBP 49.99
Price outside India Available on Request
Original price
Binding Hardbound
No of pages 520
Book size 165 x 241 mm
Publishing year 2019
Original publisher Kogan Page Limited
Published in India by .
Exclusive distributors Viva Books Private Limited
Sales territory India, Sri Lanka, Bangladesh, Pakistan, Nepal, .
Status New Arrival
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“This book has quickly established itself as the essential reference book for category management and a practical guide for practitioners. With its thoroughness and insight, it is valuable to both the category novice and the experienced manager and should be on every senior procurement executive’s bookshelf.”

Peter Smith, Spend Matters


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.


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About the author

Introduction • Using this book • A strategic purchasing trilogy

Chapter 1. Introducing category management • Category management explained • Category examples • How it all started • The relevance of category management today • A changing landscape and the certainty of change • The digital enabler • You don’t have to wear sandals to talk about social responsibility • 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 • The financial benefits possible • The non-financial benefits possible • Surely someone has already thought of this?

Chapter 2. The principles of category managementThe 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 • Digital category management

Chapter 3. Laying the groundwork for successBefore 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 4. Stage 1: Initiation • The initiation toolkit • Kicking off the category management process • 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 5. 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 • Determining strategic direction • Determining potential sources of leverage • Understanding how the supplier views the relationship/account • Portfolio analysis with supplier preferencing

Chapter 6. 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 7. 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 8. Stage 5: Improvement • The implementation 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 9. Making category management happen • Creating the right conditions • Securing executive support • Introducing 5P governance5P 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 or videos • 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 10. Guaranteeing success now and in the future • Learning from those who have implemented category management • Are organizations really seeing the benefits? • Quality of deployment • The importance of change management • CPOs regard competency as the key ingredient for success • Category management ‘black belts’ • Why CPOs regard business engagement as critically importance • The importance of fact and data-based decision making • How companies set up governance • What the future holds • The future challenges we can predict • Hashtag the future of purchasing • A new strategic purchasing (now with added supply chain!) • The future automation of routine spend • The digital and data revolution • The role of category management for the future • The future skill set for purchasing practitioners



References and further reading


About the Author:

Jonathan O’Brien is the CEO of the international procurement and negotiation consultancy and training provider, Positive Purchasing Ltd. With over 27 years’ experience working in purchasing, he has worked all over the world to help global organizations increase their purchasing capability through training, education and working directly with practitioners and executive teams to drive in the adoption of category management and other strategic purchasing methodologies. He is also author of Negotiation for Procurement Professionals, Category Management in Purchasing, Supplier Relationship Management and The Buyer’s Toolkit, all published by Kogan Page.

Target Audience:

Useful for category management practitioners and procurement executives.

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