Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 6 :Category Strategy Development - Coggle Diagram
Chapter 6 :Category Strategy
Development
Aligning supply management and
enterprise objectives
Michael Porter’s Value Chain
Integrative Strategy Development
Integrative Strategy Development
Components of Integrative Strategy
How Companies Create
Shareholder Value
Enabling Effective Category Strategies
Enabling Effective Category Strategies
Translating Objectives Goals
Cost reduction objectives
Technology/new product development
objectives
Supply base reduction objectives
Supply assurance objectives
Quality objectives
Category strategy development
Portfolio analysis
Routine category
Leverage category – preferred supplier
Critical category – strategic supplier
Bottleneck category – transactional
supplier
Determine strategic importance of
category to buyer
Category strategy outcomes
Continuous monitoring of supplier’s
performance using predetermined
criteria on goals and objectives
Continuous monitoring of both strategy
and supplie
Supplier scorecard
Review results with supplier
Update, usually quarterly
What is a category strategy?
Job of a Category Manager
Categories Requiring a Strategy
Activities
Important Outcomes
Conducting a Spend Analysis
Best Practices in Spend Analysis
Spend by Category
Suppliers by Category
Percent of Total Spend by Category
The Strategic Sourcing Process
E-reverse auctions
Buyers and suppliers are able to
communicate in real-time, worldwide,
via the Internet
Must have clearly defined specifications
Development of robust, user-friendly
Internet-based 3rd-party software
Significant improvements in goods and
service quality and cycle time reduction
Stages of supply management
transformation
Supplier Segment Rule
Strategic supplier
Preferred supplier
Transaction supplier
Supplier Preference Matrix.
Nuisance
Core
Development
Exploit
Supplier Selection Scorecards