Category Management

 Building market advantage in the overall strategy of any company should be considered as a priority action, also or especially in the management of the objectives of the purchasing department.

   A measure of the efficie
ncy of the purchasing department is its effectiveness, and the source of effectiveness is thought to design purchasing, building simple processes and simple personel structures along with clear responsibilities. I regret to say that the company at this stage commit the greatest sins arising from the misinterpretation of purchase functions, resulting in the common duties of product management, sourcing and orders dedicated to one person. Overloading responsibilities usually to guard the timely execution of orders strongly wobble effectiveness functioning of the purchasing department. Competitive advantage in the market built by dint of the goals in the area of product management (Category Management). This is where well-designed goals and objectives will result in business success, effective within of savings, outstanding market product and a higher return on investment. Management product offer portfolio (Category Management) is a series of logically complementary actions resulting from established policies that can be defined as 8 main points wheel process. 

 1. Define and characterize the product category 
 - data analysis and market trends and monitoring the actions of competitors; 
 - implementation of a common strategy for product brands;
   - choice of preferable brands, private labels or brands acquired in the process of market exclusivity; 

 2. Determination the role of product category in the global purchasing strategy 
 - determination of product strategy, eg. a recommended strategy, the impact on the result of the company 
 - Kraljic matrix (key, simple, strategic and bottlenecks products); - cooperation with the sales department regarding common developed strategies and management sales channels; 
 - centralization or decentralization of purchases in a current product category; - management of pricing strategy; 

3. Determination of the action plan due to product category 
 - searching items that favor the company on the market;
   - searching for new know how products or complementary solutions  to the existing offer; 
 - indicators analysis of sales and contracting due the product category; 
 - diversify the scenarios of action for the selected category depending on the success of sales; 

 4. Sourcing 

 - actively seeking new know –how solutions (products and services); 
 - suppliers audits; 
 - new suppliers real classification; 
 - building an expanded product base data throughout the supply chain (logistics, marketing, sales); 
 - negotiating contracts and trade conditions; - monitoring and archiving of commercial contracts; 

5. Planning 
 - TCO analysis; - cost modeling; 
 - analysis of the value chain due to cost advantages or diversification benefits; 
 - adjustment of appropriate and measurable KPIs; 

 6. Operational Activities
 - Smart developing cooperation with suppliers; 
 - Building cooperation plans with suppliers; 
 - Implementation of the budget assumptions in this category;
 - Supervising the implementation of plans of pre and post evaluation; 

 7. Action plan process realization 
 - compile procedure of building product category due to sequence of activities performed; 
 - trade condition contract determine realization; - integration processes in the supply chain by finding common areas to cooperate inter department (gather sessions with the sales department 
     on the guidelines and customer feedback on the product category, organizing promotional campaigns in collaboration with the marketing department, cooperation with logistics in the evaluation 
     of quality of supply and storage conditions); 

 8. Reviewing, analysis and conclusions 
 - systematic conducting evaluation of suppliers score cards; - extension of assessing the profitability of cooperation with suppliers as part of the financial aspect; (Margins, the costs of servicing provider,
     the costs of storage, transport costs or number of indexes, the performance of orders, paperwork);