Course description - PACE and Supply Market Analysis introduces two topics of interest to Strategic Sourcing and Supply Management professionals. First, we review the PACE© model, a lifecycle theory of price and cost evolution. It provides a framework for identifying appropriate ways of working to lower the total cost for purchased goods and services. Second, we provide two tools proven helpful for understanding the dynamics driving supply markets.

ISM-ADR School of Supply Management credit of Continuing Education Hours – 1.5 hours.
This course should take approximately 60 minutes to complete.

Intended audience - Supply Management professionals who could benefit from understanding where their categories of spend fall in the price/cost life cycle and implications for approaches to lowering cost. Also intended for individuals seeking tools for analyzing the dynamics and forces driving their supply markets.

Learning objectives - After completing this module, you will be able to:

• Determine the stage of price and cost evolution
• Explain the appropriate buyer focus for each of the four stages of PACE
• Explain the new ways of working required for each stage
• Identify factors that drive market change
• Identify factors that drive technology change
• Identify suppliers who offer competitive advantage
• Identify the lowest cost producer or supplier
• Identify the market leader

Course outline:

• The PACE module
• What is the PACE Model?
• Buyer focus
• Tactical versus Strategic control
• New ways of working
• PACE examples
• PACE exercise

• Supply Market Analysis
• What is a supply market analysis?
• How is a supply market analysis used?
• Analytical tools
• The STEEP Model
• The Porter Five-Forces Model
• A market analysis case study
• Now it’s your turn – market analysis exercise

• 20 Question Quiz