The term category management could have two distinct meanings - Category management, in terms of structuring procurement resources usually involves defining the need, identifying vendors, negotiating contracts and managing vendors or service providers after the contract is awarded. Category management is a part of the end-to-end procurement process but restricted to a specific range of goods or services. Right from pre-award processes such as category analysis and demand management, sourcing and contract negotiation, to post-award such as performance Management.
Enterprises that have dedicated category managers overseeing cross-functional plans tailored to business goals are able to gain significant competitive advantage from optimized procurement performance. Category management elevates the procurement function and helps enterprises enhance both shareholder value and customer satisfaction.
Category management offers strategic advantages and benefits for procurement - including consolidated spending, informed sourcing, cost reduction, managed risk, continuous improvement, as well as strategic alignment.