3 Different ways to prevail in category management

You Missed

What does it take to be effective with category management? How might procurement directors realize that their strategies are working? Procurement pioneers within organizations are not uninformed of the importance of procurement category management. In fact, up to 96% of CPOs see category management as a top 3 priority. Anyway, what are probably the best practices one can adopt to guarantee victory in this critical interaction? Prior to plunging into these ways, let’s first characterize category management. 

What is category management? 

The Chartered Institute of Procurement and Supply (CIPS) furnishes us with an exhaustive definition: “Category management is a strategic way to deal with procurement where organizations segment their spend into regions which contain comparable or related products empowering center opportunities for consolidation and proficiency.” It is a targeted approach or tactic utilized by procurement teams to convey strategic worth to their enterprise. 

1. Understand your providers and the external factors affecting them 

It’s no secret that China is one of America’s top three trading partners, close to Canada and Mexico. In 2019, the U.S. imported products from China worth $451.7 billion. In fact, Chinese imports into America account for 18.1% of the total U.S. merchandise imports quota. What exactly is the U.S. acquiring from the south-east Asian country? Electrical apparatus, furniture and bedding, toys and sports equipment, plastics, active ingredients for medication, agricultural products – for example handled fruit and vegetables, nibble food sources, flavors, new vegetables, and teas just to mention a couple of the bigger categories. With thousands of organizations depending on providers in unfamiliar countries, it’s at this point not just enough to zero in on internal procurement matters. You need to know what sort of regulations are being implemented by authorities and unfamiliar governments upon your providers on the other side of the world since it will inevitably affect your own undertakings. Understanding your providers and the potential issues within the production network will likewise help you sort out the best way forward with regards to lessening hazards in your own operations. Presently like never before, category directors need to think three to four steps ahead and get ready business continuity designs in the event that there are disruptions in the store network. At the point when you understand the seven-step strategic sourcing measure just as your merchants, it becomes simpler to prevail with procurement category management. 

2. Appreciate the job of a category director 

Working onto the first point of understanding your merchants is the need to appreciate the pretended by a category director.  While indeed, there are regions where the two disciplines cross-over, the truth of the matter is that category management is a separate space of procurement expertise and requires an individual qualified in this field. Category management is a field notorious for having high category director turnovers and this stems from a misunderstanding of the responsibilities and importance of category supervisors within an organization. The basic truth of the matter is that for procurement category management to be effective there should also be understanding from all who are engaged with procurement. 

3. Automation will revolutionize and streamline measures 

There is an expanding request by category and procurement chiefs for automated eProcurement technology that can deal with everything from conveying RFPs to buy orders just as paying for solicitations. Such digital platforms are incredibly useful as they permit enterprises to transition from inheritance, paper-based category management which is often extremely difficult to capitalize on. Perhaps the biggest benefit of automation and adopting cloud-based eProcurement solutions, for example, those created by  incorporating the fact that this revolutionary technology doesn’t need a goliath upfront investment for purchasing new on-premise workers and other equipment. What are the Advantages of Utilizing These Procurement Category Management Best Practices? 

There are a few professionals to be had when you adopt these techniques but the boss most is the arrangement of a good cost-benefit and promotion of more efficient procurement practices. By integrating these three different ways into your own existing category management strategy you stand to acquire with regards to being coordinated and having the option to take advantage of economies of scale. That’s not everything except you’ll likewise obtain a better insight into what the different categories you have picked mean for your danger management. 


While it might appear as though it is a daunting task trying to get things right with procurement category management, the truth of the matter is that it is conceivable. Equipped with innovative strategies, for example, the three outlined above, category supervisors can start to gain ground in their efforts to improve and prevail in their missions Opportunity Assessment. Don’t pass up realizing what is provider execution management? SPM guide in our next blog entry.  What’s more, in the event that you might want to talk about procurement software solutions with a consultant don’t hesitate to contact us today.

More articles


  1. Hey! I know this is kinda off topic however I’d figured I’d ask. Would you be interested in trading links or maybe guest authoring a blog article or vice-versa? My blog addresses a lot of the same topics as yours and I think we could greatly benefit from each other. If you are interested feel free to shoot me an email. I look forward to hearing from you! Superb blog by the way!


Please enter your comment!
Please enter your name here

Latest article