The new Category Management Credential, CACQ 007, provides an overview of Category Management (CM) and a foundation for both the Acquisition and non-Acquisition workforce on a CM team or that support CM oversight and reporting in the Department of Defense (DoD). Upon completion of this credential, learners will be able recognize the concepts, principles and functions of category management.
The assumption is that learners have little or no experience or exposure to category management and this credential will provide the Just-In-Time knowledge to help them get their job done.
You use CM in your everyday life—food, transportation, recreation may be some categories you think about. If you commute in a metropolitan area, you have transportation options and likely you use cost, schedule and performance as data inputs to choose your transportation method. What works best changes and when ride-share came along, that innovation changed the mix. The Department needs innovations to improve how we do business. CM is a way to find and adopt innovative solutions based on data to drive results!
Visit the CM Credential Concept Card to review the requirements. While there, just click on "Apply for this Credential" to apply. The training is all on-line and you will earn 12 CLPs, plus a bonus of 2 CLPs for taking the credential exam (CLPs may change based on actual student times to complete CACQ 007). The CM Credential will appear on your DAU transcript and it is good for 5 years.
How does the DoD define CM? Category Management consists of a structured, data-driven business practice whereby the organization broadly and strategically analyzes and manages common categories of spend with an enterprise-wide focus in order to eliminate redundancies, increase efficiencies and enhance mission effectiveness.
From the US Army—the Army has taken a three-pronged approach consisting of improving contract processes, supporting decisions with data analytics, in order to save time, money, and manpower. Initially the Army is addressing the areas of Transportation and Logistics, Information Technology, Facilities, Professional Services, Construction and Medical.
Mr. Rich Lombardi, Air Force deputy under secretary for management and deputy chief management officer, has said "With the publishing of the National Defense Strategy, we have a clear understanding of where the department is going and category management clearly is a good fit with the line of effort to reform the department." This in turn provides the potential to realign resources to increase the lethality and readiness of the joint force.
"The Air Force is driving a paradigm shift from budget execution to strategic cost management in an effort to obtain maximum value for each precious taxpayer dollar spent," according to General Holt.
The USAF uses the "Parthenon" to illustrate the four pillars of CM principles:
- Manage Demand & Consumption;
- Issue Policy;
- Use Strategic Acquisition Solutions; and
- Adopt Industry Best Practices.
Only the 3rd pillar is about an acquisition solution or procurement. The CM processes are Categorize Spend, Assign Cost Ownership via Category Managers, Develop Business Intelligence and Drive Results!
Naval Supply Systems Command (NAVSUP) governs, coordinates, and synchronizes strategic supply chain decisions across Navy. The 2022 Commander's Guidance to drive higher performance uses the following Pillars:
- Demand Management to reduce demand and increase predictability through design, engineering, maintenance, etc.;
- Optimize Working capital fund portfolio, taking a portfolio approach to manage cash allocation to maximize readiness;
- Shape the industrial base. Expand competition with suppliers and deepen partnership with strategic suppliers;
- Increase End-to-End (E2E) Velocity--shorten repair Turn-around-Times in line with commercial benchmarks and move parts in the supply system faster.
- Integrate existing supply chain resources to achieve E2E integration.
At DAU, find the Category Management credential, CACQ 007, and other great learning opportunities on the CM Community.