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Commodity Management Guide
(LB-10006-0100) 102 pages   $179.00

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The intent of this book is to describe the specific work of managing commodities, and to provide the focus for defining the work. Using one process provides consistency and continuity and allows defined measurements for managing commodities.

Additionally, the book's intent is to describe what the work is. The specific implementation may vary by commodity and business.

The book is structured to show generic work that is done by Commodity Management. The Appendices contain additional applicable information and tools.

Table of Contents

Chapter 1 - Introduction to Managing Commodities
Evolution of Commodity Management
Responsibilities of Integrated Commodity Management

Chapter 2 - Common Work
Commodity Management Business Model
Acquisition Management Information and Work Flow

A. Manage Client/Customer Relationships
1. Identifying Business Teams
2. Providing Commodity Management Leadership
3. Provide Make/Buy Information
4. Provide Risk Management

B. Integrate Requirements
1. Developing a Commodity Plan
2. Understand Strategies and Priorities Affecting
    the Use of the Commodity
3. Develop Acqusitions/Source Plan
4. Identify Commodity Costs and Cost Drivers
5. Compile Commodity Sizing Information

C. Provide Commodity Expertise
1. Understanding Commodity Characteristics
2. Understand Market Conditions
3. Maintain Commodity History

D. Manage The Supply Base
1. Understanding Commodity Types Provided
2. Understand Trends and Plans
3. Ensure Availability of the Source Strategy

E. Measure the Effectiveness of the Commodity Management Process

Chapter 3 - Conversion
A. Manage Client/Customer Relationships
B. Integrate Compnay's Requirements
C. Provide Commodity Expertise

Chapter 4 - Reasle
A. Manage Client Customer Relationships
B. Integrate Company's Relationships
C. Provide Commodity Expertise


  • Appendix 1 - Glossary
  • Appendix 2 - Key Supply Chain Priorities
  • Appendix 3 - Commodity Plan Outline
  • Appendix 4 - Commodity Plan Template
  • Appendix 5 - Supplier Management Role
  • Appendix 6 - Contract Management Role
  • Appendix 7 - Technology Management Role
  • Appendix 8 - Making The Right Choice

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