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Category Management

Category Management

The road to procurement excellence almost always leads to category management. Dividing the spend of your organization into relevant categories in order to create sourcing strategies is an important step in creating control and focusing your resources towards important spend areas. Which elements should you take into account when building a category strategy? How can you align category management in a global organization and manage risks with suppliers, taking into account the specific needs of different business units?

Research carried out by the Michigan State University (MSU) has led to a standardized approach to creating relevant categories and building category strategies. When first setting up category management in your organization, cultural differences, spend visibility etc. also come into play. We have taken the MSU approach one step further by incorporating value chain structuring as well as a five step approach for developing category strategies. In addition, we include the Sourcing Business Models methodology of the University of Tennessee to help choose the right business model and to formulate your strategy accordingly.

Our programs help you to create an effective category strategy that aligns with business needs, risks and market opportunities.