Category Management


Category Management is a strategic approach which organises procurement resources to focus on specific areas of spends. This enables category managers to focus their time and conduct in depth market analysis to fully leverage their procurement decisions on behalf of the whole organisation. The results can be significantly greater than traditional transactional based purchasing methods.

CIPS Procurement Content

Category Management in Procurement and Supply Management  Category management in procurement and supply management

 

Category management is a strategic process-based approach that "focuses on the vast majority of an organisation's spend on goods and services with third-party suppliers" (O'Brien, 2009:2). In application to procurement and supply management (P&SM;), category management refers to organising the resources of the procurement team to focus on the organisation's supply market (as opposed to internal customers or departmental functions) in order to fully leverage procurement decisions.

 

This paper covers:

  • what is category management
  • the application of category management
  • tips on category management
  • advantages of category management
  • disadvantages of category management

 

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