PRODUCTS

This excel-based tool provides source selection support for outsourcing, service and product procurements, and complex sourcing projects. Using this tool, sourcing team members can evaluate supplier proposals based on total costs, established evaluation criteria, and the combined “best deal” for the organization.

Category management is the process organizations use to leverage the joint purchases of multiple operating units, business groups, or divisions. It requires cross-functional participation, is team-oriented, and substantially reduces the total cost of an organization's purchases. The category management goals of an organization should be documented in written category strategies that articulate the plan for aggregating, sourcing, implementing, and measuring each family of goods and services obtained from external suppliers. The category management goals are derived from an assessment of business requirements, and reflect customer needs and organization cost, quality, and delivery goals. This excel-based toolkit facilitates the effective completion of category strategies and accompanying sourcing projects.

Elements of the Category Strategy Guide:          

Total Cost of Ownership (TCO) can be defined as the systematic quantification of all costs that will be impacted by supplier selection decisions over the product/service life cycle. The goal of TCO is to determine the effective cost of working with a specific supplier based on past performance, submitted proposals, and expected changes during the cycle of supply chain management. The TCO is determined by calculating the costs incurred or expected throughout the supply chain to include planning, design, installation, engineering, shipping, integration, quality, training, ongoing support and maintenance.