Commodity management is the process of developing a systematic approach to the entire usage cycle for a group of items.
The term is often used interchangeably with
category management
Category management is a retailing and purchasing concept in which the range of products purchased by a business organization or sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as pro ...
.
It is generally considered as one aspect of the
procurement
Procurement is the method of discovering and agreeing to terms and purchasing goods, Service (economics), services, or other works from an external source, often with the use of a tendering or competitive bidding process. When a government agenc ...
management toolkit, and frequently used in combination with other tools – such as 'two-by-four-box' analysis, looking at the strategic positioning of that commodity with respect to an organisation and its supplier. This may then be further developed with
supplier relationship management (SRM), with designated buyers managing key suppliers in given
commodities
In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.
The price of a comm ...
.
See also
Commodity management is also used in other contexts, as such managing dwindling availability of scarce resources. For this context, please see:
*
Resource management
In organizational studies, resource management is the efficient and effective development of an organization's resources when they are needed. Such resources may include the financial resources, inventory, human skills, production resources, or i ...
References
Procurement
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