DSCM402 CATEGORY MANAGEMENT IN PURCHASING JAN FEB 2026

Description

SESSION	JAN-FEB 2026
PROGRAM	MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER	IV
COURSE CODE & NAME	DSCM402 CATEGORY MANAGEMENT IN PURCHASING

 

 

Assignment Set – 1

 

Q.1. What is Category Management? Explain the steps involved in Category Management. (3+7 = 10 Marks)

Ans 1.

What is Category Management?

Category Management is a strategic approach in purchasing and retail management, whereby products or services are organized into distinct categories, and then managed as individual business units. Each category is regarded as a strategic business segment with their own team of experts, goals, relationships with suppliers, as well as performance-related metrics. It was first introduced in the retail industry before being applied to procurement, category management

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Q.2. What are the four pillars of category management? What are some key benefits of implementing category management in a retail business? (5+5 = 10 Marks)

Ans 2.

Four Pillars of Category Management

category management is built on four core pillars, which determine how categories are arranged, managed, and delivered to serve both the retailer and the customer effectively.

The initial pillar Consumer Understanding. A successful category management strategy starts by gaining a thorough understanding of the preferences of consumers, their needs in shopping behavior, as well as buying decision-making factors. Retailers rely on loyalty card information,

 

 

Q.3. What do you understand by team charter? Discuss the Key Measures to Improve Value Chain Efficiency. (5+5 = 10 Marks)

Ans 3.

Team Charter

A team charter is an official writing document that defines the mission, scope of membership, members and responsibilities, the operating rules and the performance standards of a group engaged in a specific task or a continuous function. In the context of categorical management, a group charter defines the structure within which the cross-functional category team works, giving clarity as to the goals that the team has to achieve, who’s responsible for what, and how decisions will be taken and disputes dealt with. It typically includes the team’s mission statement,

 

Assignment Set – 2

 

Q.4. What factors contribute to the failure of innovation in businesses? Briefly explain the steps involved. (5+5 = 10 Marks)

Ans 4.

Factors Contributing to Failure of Innovation

Failure to innovate is a frequent and costly challenge for businesses despite the significant investment in new design, process enhancement and technology adoption. A variety of interconnected causes can contribute to the failure.

The absence of Clear Strategic Alignment is the primary reason. When projects for innovation

 

 

Q.5. Explain the features and significance of source plan. Elaborate the Strategies for Effectively Managing Organizational Change. (5+5 = 10 Marks)

Ans 5.

Features and Significance of Source Plan

A source plan, sometimes known as a sourcing plan is a plan of action that outlines the way in which an organization will determine, analyze the selection, manage, and select vendors for a specified category over a defined plan horizon. It integrates the procurement strategy into a structured roadmap aligning the sourcing decision with goals of business.

Important features include a simple category scope definition covering everything that is included in as well as current and targeted expenditure levels, approved suppliers identities,

 

 

Q.6. What is Relationship Management? Explain the Main components in category Management programme plan. (3+7 = 10 Marks)

Ans 6.

Relationship Management

Relationship management in the context of category management and procurement refers to the formal method of establishing, maintaining, and enhancing the relationships between an organisation and its principal suppliers, internal stakeholders as well as retail partners, to build sustainable value. It goes beyond transactional interactions in order to establish collaborative partnerships characterized by trust, transparency shared objectives, and joint accountability for results. A successful relationship management process involves regularly structured reviews,