When purchasing high volume spend items or services, many best-in-class-companies develop category/commodity management plans which offer a short and long term strategy for controlling costs and mitigating risks.
A plan will identify applicable suppliers and include a supply market analysis using industry frameworks such as Porter’s Five Forces. It will examine an item/service’s cost structures, price drivers and supply and demand. It will also determine the risks that might impact an item/service’s cost, availability and quality and offer solutions for monitoring and managing them.
This Guide and additional resources in CANVAS feature information resources required for developing such a plan:
Difficult to locate Information on over twenty raw materials is available by contacting the TO 624 librarian.
In Canvas the Stainless Steel Price Driver framework and Commodity Information Trail for the Orange illustrate the stream of information resources used for developing a plan.
For further assignment guidance, refer to the Final Project's guidelines. Feel free to contact the TO 624 Consulting Librarian for research assistance or an appointment.
Danguole "Dee" Kviklys (dkviklys@umich.edu)
