Singapore University of Social Sciences

LOG315 Category Management and Supplier Evaluation covers two important areas in procurement. Category Management is a part of strategic cost management techniques to analyse organisations’ spending by discrete groups of products and services. Products and services purchased by the organisation are segmented into groups according to their functions. Effective application of category management enables an organisation to aggregate their procurement efforts on products and services of similar functions to gain substantial cost savings. This course will also cover Spend Analysis, one of the key tools for Category Management. There are two aspects in Supplier Evaluation. The first aspect is to evaluate potential suppliers. The techniques for selecting suppliers include; supplier surveys, financial condition analysis, facility visit, evaluation conference and capability analysis on quality, capacity, management, service, flexibility and information technology. The second aspect of supplier evaluation is supplier performance evaluation. The techniques to monitor and control suppliers’ performance include: categorical plan, weighted point plan and cost ratio plan.