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.
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
Appendices
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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