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Category Management (Aust.)

Parent Policy

Procurement Policy

This document covers the procedure to be followed when conducting Category Management of awarded contracts where the value of the contract is anticipated to exceed the Tender Threshold Value over the contractual term or a three year period, whichever is the shorter period.

Category Management is based on the fundamental premise that at contract execution a platform for potential benefits is created and the extent to which these benefits are realized (or not realised) during the contract period is based on how well the contract is managed. To this end, good Category Management principles must be applied in order to ensure maximum benefit is realized by the University.

Category Management is undertaken to ensure that:

  • strategic sourcing benefits;
  • contract objectives;
  • continuous improvement opportunities; and
  • environmental opportunities are fulfilled through the life of the contract.

Definition of terms

Category Management: Procurement activity undertaken to manage aspects of the implementation and use of a contract within the University, including the relationship(s) with stakeholders within the University and the supplier.
Strategic Procurement Category Manager: Monash University staff member employed within the University’s Strategic Procurement as a Category Manager
Supplier: A person or organization that can provide goods and/or services to the University.

Role of the Category Manager

The Category Manager shall undertake the following:

  • Ensure that contracts are implemented according to the agreed terms
  • Ensure that all users adhere to the established agreement (endorsed and strategic contracts) 
  • Act as the main point of contact with suppliers and internal stakeholders
  • Resolve operational issues raised by contract users and suppliers 
  • Communicate operational procedures to contract users and stakeholders
  • Report on supplier performance, transaction data, savings and continuous improvement initiatives to stakeholders
  • Ensure all goods and /or services are provided in accordance with the contractual requirements
  • Progress the continuous improvement opportunities identified during strategic sourcing
  • Minimize environmental impacts

Responsibility

Strategic Procurement Category Manager or Assigned University Officer

Duties of the Category Manager

Category Manager(s) in fulfilling their duties should undertake the following activities:

  1. Data Capture and Analysis to obtain the required data and perform the analysis to manage the contract on at least a quarterly basis, including:
     - Supplier reports
     - Identify improvement opportunities
     - Measure supplier performance (including service delivery and benefits tracking)
     - Provide benefits tracking data to the Business Analyst, Strategic Procurement Group
  2. Compliance Monitoring on at least a quarterly basis by undertaking:
     - Pricing Audits
     - Compliance to environmental initiatives and obligations
     - Conducting contract users reviews
  3. Category Reporting on the performance of the contract, which includes:
     - Benefits tracking
     - Progress on continuous improvement opportunities
     - Progress on category objectives
     - Off contract spend analysis, and remedy mechanisms to be progressed
     - Significant open issues and associated corrective action plan
  4. Risk Management of the contract, which includes conducting Risk Assessment(s), identifying mitigation strategies, assigning responsibility to identified actions and reporting on progress of actions.
  5. Supplier Management where the Category Manager is responsible for:
     - Issues tracking and resolution
     - Conducting a supplier workshop at least once a month
     - Conducting quarterly supplier reviews
  6. Continuous Improvement and value for money opportunity identification through the life of the contract.
  7. Category Management Plan development and maintenance, which should include the following:
     - Objectives to be fulfilled over the life of the contract
     - Define the benefits to be achieved
     - Communication with stakeholders
     - Update category baseline analysis
     - Category opportunities
     - Risk Management Plan including clear descriptions of risks identified, mitigation actions and responsibility assigned.

Responsibility

Strategic Procurement Category Manager or Assigned University Officer

In the event a dedicated Category Manager is not assigned

There may be instance where resources are not readily available and/or funding has not been approved to obtain the required resources to carry out Category Management activities. Following actuions must be undertaken:

  1. Identifying the required resources.
    During the strategic sourcing process, the Procurement Project Leader is required to prepare a procurement plan that will include the identification and assignment of the required resources to carry out category management.
    The resource requirement is then assessed against current availability within the department, faculty and/or corporate areas and assigned as appropriate. If the appropriate resource is available, they should be assigned with the responsibility of being the Category Manager.
    Where it has been determined that an additional or a new resource is required the University's existing HR processes should be followed.
  2. Gaining approval for new/additional resources.
    If additional and/or new resource is required, then approval must be obtained from the Procurement Board and the SRC prior to engaging such resources. Any activity carried out in engaging resources should also comply with the appropriate University's HR policies and procedures.

 

Responsibility

Procurement Project Leader

Minimum category management activities to be undertaken if appropriate resource is not allocated.

In the event that a dedicated Category Manager is not assigned, at a minimum the following category management activities are required to be undertaken by a nominated person from the department, faculty and/or corporate area:

  • Ensure that the contract is implemented according to the agreed terms
  • Act as the main point of contact with suppliers and internal stakeholders
  • Resolve operational issues raised by contract users and suppliers
  • Progress the continuous improvement opportunities identified during the strategic sourcing process

Responsibility

Nominated resource from department, faculty or corporate

Contact Person: Finance Policy