Advanced Approaches: Getting a Grip on Category Management (Part 3) [Plus+]

category management djile/Adobe 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, we concluded, is a strategic approach to managing 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 collect all of their requirements, connect internal customers to sourcing and work with them to develop the best strategy for the category, as well as 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. That’s why, in our last article, we defined some of the many facets of modern category management, which some may call category management 2.0, in an effort to 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. We also talked about the multidimensional nature of modern categories, the need for customization on a category basis and category intelligence. But even though these are pretty advanced approaches, they are still simple compared with where a modern sourcing organization needs to go. In this article, we explore a few of these (advanced) approaches.

For full access to this Spend Matters Plus content: