Category
Management

Dramatic cost reduction, increased value and innovation, and reduced risk from your supply base

Category Management is a strategic procurement approach to maximize profit, reduce risk and secure added value from the supply base, as well as access new innovation from key suppliers. When well executed through a quality implementation, Category Management can add dramatic value to an organization, building competitive advantage and generating a solid contribution to shareholder equity.

We have extensive experience of implementing Category Management and developing advanced capability across procurement teams in today’s leading brand name companies. The Positive Purchasing 5i® Category Management methodology represents best practice strategic purchasing with proven results and mainstream adoption the world over.

Find out more about what Category Management is here or for the latest Category Management thought leadership, read our latest Insights



5i® Category Management Training and Solutions

5i Category Management Toolkit - The full proven 5i process supported by a comprehensive suite of online materials, tools, templates and resources. Options include standard format, rebranded or customized to meet organizational needs. Available on demand in the cloud via subscription to 5i Online, through your own unique customized Procurement Academy, or installed on your network via licensing options.

Category Management Training - In-house Courses - High impact, inspirational and highly practical training courses in Category Management that are designed to enable organizations to develop an effective Category Management capability. With in-house training solutions for practitioners, support staff, stakeholders and executives, and with options to customize workshops and even work on your real categories during the training, our world-renowned training in this space is second to none. Standard course options include:



Category Management - 3-Day

A 3-day Category Management course aimed at experienced or developing purchasing staff and potentially some key stakeholders. The course covers all aspects of our 5i® Category Management process (or can be customized around your company specific process).

This course enables and fully equips your practitioners to deliver significant business benefits around reduced price and cost, reduced supply base risk and to unlock innovation and greater value for your most important categories of spend.

This is our most popular course and is essential for any company embarking on, or attempting to re-establish, a Category Management program. Our experienced trainers bring the training to life using a combination of inspirational tuition, facilitated debate, group work and case studies. We can customize the course as needed and, if required, we can combine work training with supported working sessions for delegates work on their own categories, creating key outputs form the workshop.

Learning objectives

By the end of this session delegates will be able to:

• Describe what Category Management is and how it adds value
• Apply Category Management to key areas of spend
• Explain the key steps of the process and determine which tools to apply for each category
• Establish a cross-functional team and engage the business
• Define business requirements
• Analyse a category and determine a category strategy
• Create a source plan
• Develop a detailed implementation plan
• Manage implementation and apply change management principles
• Describe how to link contractual terms with the category strategy
• Begin to implement suitable arrangements for supplier management
• Determine when to restart the Category Management process

Who should attend

• Procurement professionals
• Junior or developing buyers
• Purchasing managers
• Purchasing leadership teams
• Stakeholders who are to support or be part of category teams

Course Content (customizable and modular to suit your requirements)

• Introduction to Category Management
• Achieving breakthrough results and managing change
• The STP (Situation, Target, Proposal) tool
• Cross functional teams and team formation/project kick off
• Stakeholder mapping and communication planning
• Business Requirements definition and prioritization
• Early insights into category using day one analysis
• Quick wins and opportunity analysis
• Supplier conditioning
• Planning the category project
• Data gathering (internal, supplier and market)
• Getting behind suppliers’ price using price model and purchase price cost analysis
• Supply chain value mapping
• External environment analysis using PESTLE and Porter’s Five Forces
• Strategy development using Portfolio Analysis/Kraljic Analysis and Supplier Preferencing
• Summarising all the analysis and findings using SWOT
• Strategic sourcing options generation and evaluation
• Source plan/sourcing strategy development and approval
• Risk and contingency planning
• Contracting methodology and planning
• Detailed implementation planning and project management
• Tendering/RFP/RFQ
• Planning the negotiation (high level introduction)
• Managing the supplier and the new arrangements (high level introduction)
• Introduction to continuous improvement and the ongoing attraction of breakthrough and innovation

Find out more by downloading the Category Management 3-Day Prospectus

To book this course for your business or to discuss how we can customize the course for your specific needs, contact us today.

Category Management - 2-Day Intensive

A 2-day intensive Category Management course aimed at providing a good degree of introduction to key stakeholders and junior practitioners. The course is structured around the 5i® Category Management process (or can be customized around your company specific process) with the main emphasis on all the activities leading up to defining a game changing sourcing strategy.

The course includes an introduction to Category Management with an exploration of the key principles as well as some in-depth work on a selection of key tools from the process.

This course helps enable and equip your practitioners to deliver significant business benefits around reduced price and cost, reduced supply base risk and to unlock innovation and greater value for your most important categories of spend.

Our experienced trainers bring the training to life using a combination of inspirational tuition, facilitated debate, group work and case studies. There are options for delegates to work on their own categories in break out sessions or gain the learning by working through a selection of carefully selected case studies based upon real life examples.

Learning objectives

By the end of this session delegates will be able to:

• Describe what Category Management is and how it adds value
• Explain the key steps of the process and determine which tools to apply for each category
• Participate in a cross functional team
• Define business requirements for a category
• Begin to analyse a category and develop a breakthrough category strategy
• Support the creation of a source plan or category strategy
• Participate in category projects on-going

Who should attend

• Procurement professionals
• Junior or developing buyers
• Purchasing managers
• Purchasing leadership teams
• Stakeholders who are to support or be part of category teams

Course Content (customizable and modular to suit your requirements)

• Introduction to Category Management
• Achieving breakthrough results and managing change
• The STP (Situation, Target, Proposal) tool
• Cross-functional teams and team formation/project kick off
• Stakeholder mapping and communication planning
• Business Requirements definition and Prioritisation
• Early insights into category using Day One analysis
• Quick wins and opportunity analysis
• Supplier conditioning
• Data gathering (internal, supplier and market)
• Getting behind suppliers price using price model and purchase price cost analysis
• External environment analysis using PESTLE and Porter’s Five Forces
• Strategy development using Portfolio Analysis/Kraljic Analysis and Supplier Preferencing
• Summarising all the analysis and findings using SWOT
• Source Plan/sourcing strategy development and approval
• Introduction to implementation planning and project management

Find out more by downloading the Category Management 2-Day Intensive Prospectus

To book this course for your business or to discuss how we can customize the course for your specific needs, contact us today.

Category Management - 1-Day Introduction

A 1-day introductiory level Category Management course aimed at stakeholders or individuals who are coming into contact with Category Management programs. This course is an ideal supplement to a wider, more advanced Category Management education program and can help to ensure that everyone who needs to be involved has sufficient understanding to participate.

This course will help you develop winning category strategies by ensuring those across the business who need to be involved understand, support and actively participate in the Category Management process.

The course provides an introduction to 5i® Category Management and includes an exploration of the principles of the process and what makes it so successful. The role of purchasing within organizations is also explored to help delegates understand the value that is possible and what is needed to unlock it. The course also provides an introductory level taster for some of the key tools in Category Management to illustrate buyer/seller dynamics.

The agenda for the 1-day session is entirely flexible and we can develop alternative approaches to achieve specific organizational objectives or integrate the training to reflect organization specific Category Management processes.

Delegates receive a full colour manual containing a copy of all materials used and a 5i® Category Management process.

Learning objectives

By the end of this session delegates will be able to:

• Describe what Category Management is and how it adds value
• Explain the key steps of the process
• Describe ways that suppliers gain advantage
• Apply some simple tools to help understand and plan a category
• Define business requirements
• Play an active role in a Category Management project

Who should attend

• Junior or developing buyers
• Stakeholders who are to support or be part of category teams

Course Content (customizable and modular to suit your requirements)

• Introduction to Category Management
• The principles of Category Management
• The Category Management process
• The STP (Situation, Target, Proposal) tool
• Cross-functional team approach
• Determining Business Requirements
• How suppliers gain power over buyers
• Some early insights analytical tools
• Defining a sourcing strategy

Find out more by downloading the Category Management 1-Day Introduction Prospectus

To book this course for your business or to discuss how we can customize the course for your specific needs, contact us today.

Category Management - Half-Day Executive

A half-day specialist high level Category Management course aimed at senior management and executive teams in companies implementing Category Management or contemplating implementing the approach.

Delivered by a Partner-level specialist as an interactive workshop, it combines an exploration of the principles of Category Management (including a taster of some key tools) with working sessions to relate the process to the organization. These working sessions are invaluable in terms of helping senior individuals understand and embrace their role to support the process.

This course will galvanize the senior support necessary to realise significant business benefits around reduced price and cost, reduced supply base risk and to unlock innovation and greater value for your most important categories of spend.

Our standard executive training is half a day, however this is, as with all our workshops, flexible and we can adapt the agenda and content to suit. Delegates receive a copy of materials used and a 5i® (or company specific) process.

Learning objectives

By the end of this session delegates will be able to:

• Describe what Category Management is and how it adds value to the organization
• Describe why Category Management is an essential business process
• Describe the key principles and stages of Category Management
• Put in place the appropriate governance approach to enable Category Management
• Play a key role to enable and support the process and realization of benefits

Who should attend

• Senior procurement individuals
• Senior stakeholders
• Executive level individuals

Course Content

The content is customisable and modular to suit your company-specific requirements

• Purchasing as a contributor of real value
• Purchasing maturity and best practice
• Introduction to Category Management as a concept
• The foundations, pillars and phases of Category Management
• Achieving breakthrough results and managing change
• Taster session using analytical tools and exploration of the Category Management toolkit
• Category Management governance structure
• The role of senior teams to support Category Management

Find out more by downloading the Category Management Half Day Executive Prospectus

To book this course for your business or to discuss how we can customize the course for your specific needs, contact us today.

5i Online Category Management

5i® Online from Positive Purchasing provides everything today’s purchasing professional could need to apply the latest, best practice strategic procurement sourcing methodology to your key categories of third party spend – and it is only a click away.

5i Online provides practitioner access to the proven 5i Category Management Sourcing and Orchestra of SRM® (Supplier Relationship Management and Supplier Management) processes, enabling price, risk and cost reduction to maximize profitability while increasing innovation from the supply base.

Sourcing projects are made easy through best practice processes and toolkits, including templates and downloadable reference materials, that explain how to use each tool and technique. Learn at your own pace how to help make procurement a key strategic contributor to realizing organizational goals by taking the online training courses, using the latest high quality streaming video and eLearning technology.

Click here to see inside 5i Online.

5i Online includes:

  • The 5i Category Management Sourcing Process
  • The 5i Lite Process – a streamlined version for less complicated areas of spend
  • The Orchestra of SRM – Supplier Relationship Management and 5ATM Strategic Collaborative Relationship Processes
  • Full supporting toolkits for each of the above, comprising downloadable tools, templates, reference workbooks, quick reference guides and examples to enable organization-wide collaboration and cross-functional working
  • High quality video streaming modules for each key tool or step
  • Full range of comprehensive interactive self-study eLearning modules
  • Individual learning plan management panel
  • Automatic content updates and enhancements

5i Online is available on a subscription basis for single users, small companies, groups or full corporate licenses. A valid subscription provides the user with a license to use the tools and materials. Current subscribers automatically receive content updates throughout the license term.

PatentPlus - Patent Spend Value Improvement Program

Patent owners recognize that a well-maintained patent portfolio is critical to future prosperity and will often pay the highly-specialized supply base significantly more than necessary for annual renewals (or annuities). For companies with a large portfolio and a high patent spend, the right intervention, such as the PatentPlus program, can typically deliver a cost reduction of more than 20% – potentially returning millions of dollars to a company’s bottom line without compromising IP protection.

The PatentPlus program is a high impact results-based program that can deliver immediate and significant cost savings at no risk to your business. Our program will review your patent renewal spend with your current suppliers and identify opportunities for cost reduction. Incorporating a training workshop, it will also equip and enable your team to better manage these suppliers moving forward.

The program is delivered through a collaboration between procurement and negotiation experts Positive Purchasing and patent renewal experts Patent Annuity Costs Ltd. Together, we combine best practice procurement category management capability with proven patent market and cost analysis expertise to create a winning solution with an exceptional return on investment.

The PatentPlus program operates across two phases:

Phase 1: Diagnostic
Reviews your current situation and identifies the potential benefit opportunity for cost reduction and better patent renewal management in your organization.

Phase 2: Delivery
Should you decide to proceed with our recommendations, we will deliver these benefits into your organization and, where appropriate, establish new contracts with your providers.

For more information, contact us or download the product infosheet.



Category Management Training - Public Courses - Our winning, high impact 5i Category Management training available for single delegates, run at different locations with set dates through the year. Check the latest schedule here and contact us to sign up or request further information.

5i eLearning - Online Training - Learn remotely at your own pace with our comprehensive library of 5i Category Management eLearning modules. Our much acclaimed interactive eLearning modules, built using the very latest in eLearning technology, are the next best thing to classroom training. Our modules include the latest HD streaming video with professional presenter and actor sequences that bring learning to life. Available as a complete package via 5i Online, your own unique customized Procurement Academy.

5i Category Management Governance - Effective Category Management requires a quality implementation and rarely happens on its own, so good governance is essential. Using our 5P Governance approach we will work with your senior team to help you determine what needs to happen in your organization to successfully implement Category Management and get the results you need. The governance program includes workshops with your key team and a full 5P Governance set-up pack developed for your organization that defines the implementation roadmap.




Category Management 'in a box'

The complete package for small procurement teams

Our Category Management 'In a Box' solutions provide everything you need to effect a quality implementation of Category Management within a small to medium sized procurement team. The package includes:

  • 3 Day Category Management training course for procurement practitioners
  • One year’s subscription to 5i Online for all delegates
  • A Category Management governance workshop and set-up pack
  • Copies of Category Management in Purchasing by Jonathan O’Brien for all delegates

Package options are available in three sizes:

  • Venture package – Up to 10 people
  • Enterprise 1 package – Up to 20 people
  • Enterprise 2 package – Up to 40 people

For more information, just contact us and we will work with you to find the right solution.