Some Basic Approaches: Getting a Grip on Category Management (Part 2) [Plus+]

category management Stock

In the first part of this series, we introduced category management, which is much more than just grouping products into categories and category sourcing. Proper category management, as we concluded at the end of the article, is a strategic approach to organizing activities around supply that transforms the procurement organization from a cost saver to a value generator using advanced strategies and workflow processes that connect external customers to internal customers and collects all of their requirements, connect internal customers to sourcing and works with them to develop the best strategy for the category, and connect sourcing to downstream procurement to make sure the contract, and the execution plan, is followed and the identified value retained. And that’s just the beginning. In this article, we define some of the many facets of modern category management, which some may call “category management 2.0,” as we illustrate that proper category management is not a one-size-fits-all process or strategy but an evolving strategic mindset that takes into account the organizational needs, market conditions and results of the category analysis and adapts to provide the organization with the best overall value each time the category is sourced.

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