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TO 624 Strategic Sourcing: Getting Started

Technology and Operations TO 624 course library & information resources

TO 624 - About the Commodity/Category Management Plan

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:

  • Information about how the product is made to help identify some of the price drivers
  • Market research identifying suppliers and their capabilities and providing an overview of market dynamics
  • Reference pricing
  • Supply and demand data
  • Government regulations and industry standards
  • News sources for risk identification
     

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.

TO 624 Consulting Librarian

Danguole "Dee" Kviklys (dkviklys@umich.edu)

 

 

How Products are Made

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