Question:
This assessment tests the learning outcomes and module content of:
Module: Advanced Category Management in Procurement and Supply Chain Management
Task
You are required to select an example of a category of procurement or a product, service or works bought by your organisation and create a category plan. This should include an implementation plan which also identifies the challenges in implementing your plan and your strategies for mitigating the challenges.
Guidance for candidates
Your work should consist of 3,000 words. Your assignment should include the assignment title, your candidate number and word count on the front cover, followed by contents page, executive summary, conclusions, recommendations, references and a bibliography. Any source materials such as web sites, company reports, indices, market data, articles, journals or texts should be listed in your references or bibliography in accordance with a recognised referencing system. Your assignment submission should be word processed with a minimum font size 12pt and 1.5 or double line spacing. Refer to the Assignment Guidance document for more information.
Answer/Solution:
Table of Contents
2.0 Background of Organisation and Selected Category of a Product. 5
2.2 Selected Category of a Product. 5
3.1 Kraljic Portfolio Matrix of the Stationary Office Products. 7
Supplier View of Customer Account. 8
3.3 Overall Cost of Ownership Analysis. 10
3.4 Porter’s Five Forces for Office Products Category Plan. 12
3.5 SWOT Analysis in Context of Business of the Product Procurement. 12
3.6 Strategic Sourcing of the Stationary Office Products Category. 13
4.0 Category Plan Implementation, Challenges and Solutions. 14
4.1 Arranging Overall Organisation around the Customer. 14
4.2 Building a Functional Level of Trust with Suppliers. 14
4.3 Ability to Measure Success of Category Plan. 15
4.4 Category Role and Definition. 15
5.0 Conclusion and Recommendations. 16
References and Bibliography. 18
Executive Summary
This assessment has created a category plan for DCT stationary office products procurement. The category planning has been identified as a process that is aligned to business objectives and developed with key customer stakeholders. This has been identified as having a direct impact on influencing sourcing strategies and contract management initiatives. The developed category plan has been aligned with the customer business objectives with a strategic approach being on value maximization, risk reduction and effective management of the supply of goods and services. The category scope of office products procurement by DCT has been evaluated and the different categories identified. To identify the supply positioning, a Kraljic Portfolio Matric, SWOT analysis, Porters 5 Forces and business environment has been used. Also, the key facts and insights on market competition and total cost of ownership analysis have been carried out. This is inclusive of an implementation plan that has been developed, different challenges in plan implementation identified and strategies for challenges mitigation.
Taking into account the findings, there
are different recommendations that can be generated for improving the category
plan by DCT in the procurement of the stationary office products in their main
office. The recommendations include improved supplier relationship management
and improvement, significant Sourcing Strategies and a Continuous Improvement
in the entire process of category planning.
1.0 Introduction
Category planning is identified as a process of developing a category plan aligned to the customers’ business objectives with a strategic approach of value maximization, risks reduction and effective management of supply of goods and services. According to CIPS (2013), category planning is supposed to be aligned with the business objectives and its development with key customer stakeholders. Additionally, successful category plans are supposed to be influencing the sourcing strategies and different contract management initiatives. From a general perspective, O’brien (2019) defines category management as a supplier process of managing the categories as strategic business units, producing enhanced business results by having a focus on customer’s delivery. As shown in figure 1, category management is categorized into category planning, sourcing, and supplier management.
Figure 1: Planning Fitness in the Category Management
In most organisations, category planning is implemented by sourcing managers to rationalize their suppliers, buying power aggregation, driving down pricing and ultimately improving their supplier performance against their contract. This is done to produce an interactive and collaborative business process where the distributors and suppliers operate as partners for enabling their creation and management of customer-oriented category plans. Similarly, in the category planning, the best practice is alignment with customer business plans, procurement targets and customer stakeholder strategies. Prior to the category planning, diagnostics is implemented for developing category profile and market research and intelligence. After category planning the category management is implemented. With this background, this assessment intends to create a category plan of a category of a product procured by the Department of Culture and Tourism (DCT) in Dubai UAE. This would be inclusive of an implementation plan and identification of challenges in implementing the plan and strategies of mitigating the challenges.
2.0 Background of Organisation and Selected Category of a Product
2.1 Introduction to DCT
The Department of Culture and Tourism (DCT) is tasked with regulating, developing and promoting the Emirate of Abu Dhabi. The promotion majorly focuses on areas such as
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