I am currently researching the topic of commodity / category management in industrial purchasing organizations. In my paper "A conceptual model of category supply management" which I presented at IPSERA Conference 2013 in Nantes (France), I find that strategic sourcing decisions are generally developed specifically for differentiated groups of commodities.

Contrary to the classical understanding of commodity management, the analysis of current purchasing illustrates that commodity management within the strategic sourcing concept analyzes the entire range of purchased items (direct and indirect purchases) and pursues segmentation into groups of synergetic units. Whilst classical ‘commodity management’ focuses on the creation of cost savings by bundling purchasing items, value driven commodity management in strategic sourcing takes a total cost of ownership perspective. In terms of organization, cross-organizational and cross-functional approaches for optimizing groups of purchasing categories in periodic optimization projects through permanent or temporary units represent the dominant mode. Further, the quantitative analysis of commodity purchasing illustrates that contrary to previous category management forms the discussion of implementation oriented sourcing practices plays an important role in category purchasing research.

Do you agree on these statements?

What are your experiences on the institutionalization of commodity management in the strategic sourcing context? (project-based or permanent teams)

What mechanisms exist to manage and integrate differentiated commodity purchasing strategies and teams?

Can you recommend any literature on commodity management in purchasing?