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Category Management Implementation in Purchasing in Petrochemical Holding

Student: Ksenia Pyanova

Supervisor: Pavel Sverchkov

Faculty: Graduate School of Business

Educational Programme: Strategic Management in Logistics (Master)

Year of Graduation: 2016

In today's business all possible tools should be used to reduce procurement costs. Category management in procurement became popular in Western countries. The development of category strategies and application of appropriate tools for each category individually can significantly reduce the total purchasing costs. The purpose of the master's research is to improve the modern approach to the category strategy development, and evaluate the feasibility of certain techniques and tools in petrochemical holding purchasing. The object of the research is a prominent Russian petrochemical company. In this paper, existing approaches to the implementation of categorical strategies are analysed and modern approach A.T.Kearney is improved. During the implementation of an improved approach the author conducted an internal analysis and market research of pumping equipment category, developed category strategy and identified category management tools, as well as calculated the cost-effectiveness of the proposed strategy tools.

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